NEW YORK, NY, August 10, 2005 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it acquired and leased back seven industrial manufacturing facilities located in the United States, Canada and Mexico, from MetoKote Corporation, a leading provider of protective coating applications, for approximately $42 million. This sale-leaseback transaction represents W. P. Carey’s first investment in Mexico and its second in Canada. MetoKote is owned by JPMorgan Partners, a private equity unit of JPMorgan Chase & Co.
The facilities are located in Peru, IL; Lima, Dayton and Cleveland, OH; Nashville, TN; Cambridge, Ontario, Canada; and Saltillo, Mexico. The facilities were acquired on behalf of Corporate Property Associates 16 – Global Incorporated (CPA®:16 - Global), a member of the $7 billion W. P. Carey Group of income generating real estate funds. Metokote will maintain operational control over the facilities for an initial period of 20 years, followed by two, ten-year renewal options.
Gino Sabatini, a Director at W. P. Carey & Co. LLC, said, “This sale-leaseback reflects W. P. Carey’s ability to complete multi-national real estate financing transactions. We were pleased to have completed this transaction as it represents our first investment in Mexico and enables Metokote to make better use of its real estate assets while providing further diversification to CPA®:16 – Global’s portfolio of properties.”
John M. Warner, a Principal at J.P. Morgan Partners LLC, said, “W. P. Carey’s ability to execute this complex, cross-border transaction has enabled Metokote to release capital tied up in real estate assets which will be used to continue Metokote’s aggressive growth plan.”
METOKOTE CORPORATION
Headquartered in Lima, OH, MetoKote is the industry leader in protective coating applications. The Company serves over 1,000 customers throughout the United States and the world. MetoKote provides environmentally sound and cost-effective coating solutions to a wide variety of industries such as: agriculture, appliance, automotive, computer, construction equipment, electrical, furniture, industrial equipment, recreational, and truck and bus. www.metokote.com.
J.P. MORGAN PARTNERS, LLC
J.P. Morgan Partners, LLC (JPMP) is a leading private equity firm with over $11 billion in capital under management as of June 30, 2005. Since its inception in 1984, JPMP has invested over $15 billion worldwide in consumer, media, energy, industrial, financial services, healthcare, hardware and software companies. With more than 80 investment professionals in five principal offices throughout the world, JPMP is an experienced investor in companies with worldwide operations. Underpinning this platform is a global integrated network, which enables JPMP to draw on expert resources residing within JPMorgan Chase, its extensive portfolio and worldwide contact network.
Selected investments include: AMC Entertainment, Berry Plastics, Cabela’s, National Waterworks, Pinnacle Foods, PQ Corporation, SafetyKleen Europe, Vetco International and Warner Chilcott.
JPMP is a private equity division of JPMorgan Chase & Co. (NYSE: JPM), one of the largest financial institutions in the United States, and is a registered investment adviser with the Securities and Exchange Commission.
W. P. CAREY & CO. LLC
Founded in 1973, W. P. Carey & Co. LLC specializes in helping companies and private equity firms realize the capital tied up in their real estate assets. Whether used for buyouts, add-on acquisitions, recapitalizations or growth, net lease financing provides access to 100% of the real estate's value enabling companies to maintain complete operational control. Acting as principals in transactions from $5 million to $500 million, W. P. Carey and its affiliates have committed approximately $3 billion over the last three years and now manage more than $7.2 billion in assets. www.wpcarey.com/finance
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This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the company’s actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the company, reference is made to the company’s filings with the Securities and Exchange Commission.