NEW YORK, Dec. 28 /PRNewswire/ -- Castle Harlan Inc., the New York
merchant bank, has signed a definitive agreement to acquire AMR Services, a
subsidiary of AMR Corp. (NYSE: AMR), parent of American Airlines. The terms
were not disclosed and completion of the transaction is anticipated in the
first quarter of 1999. AMR Services had 1997 revenues of $202 million.
AMR Services is one of the world's leading providers of ground services
for more than 200 airlines at over 60 major airports in the United States,
Canada, the Caribbean, Europe and Asia. They include the three major New York
area airports, Chicago's O'Hare, Orly and Charles de Gaulle in Paris, and the
new Chek Lap Kok International Airport in Hong Kong.
AMR Services counts most of the world's major airlines among its
customers, including American, Air France, British Airways, Delta, KLM, Korean
Air, Lufthansa, Singapore and United. Formed in 1984, AMR Services today
employs nearly 8,000 people. Its revenues this year are expected to top
$220 million.
The acquisition is being made by Castle Harlan Partners III, a
$630 million limited partnership for private equity investments organized and
managed by Castle Harlan. Marcel Fournier, the managing director at Castle
Harlan who negotiated the transaction, hailed AMR Services' excellent
reputation.
"AMR Services is recognized as a provider of the highest quality," he
said. "It has a strong and experienced management team and a dedicated work
force. We have great confidence that the company is poised for significant
growth."
AMR Services' support for airline and airport operators includes passenger
check-in, ticketing and boarding, cargo loading and unloading, and cargo
facilities management. On the ramp, it provides aircraft marshaling and push-
back, and cabin cleaning. Technical services include maintenance support for
aircraft, ground equipment and passenger loading bridges, plus fueling and
fuel farm management.
Peter A. Pappas, president and CEO of AMR Services, views the acquisition
as an outstanding opportunity for the company and its employees.
"Castle Harlan is known for its success in growing the companies it
acquires and adding value to them," he said. "I know we have found a great
partner."
Pappas noted that Castle Harlan has previous experience in the aviation
industry, having owned MAG Aerospace Industries, Inc., the world's leading
manufacturer of aircraft sanitation systems and trash compactors, which it
sold earlier this year. It also owned Smart Carte Inc., the world's leading
airport baggage cart company, which it sold in 1996.
Castle Harlan Partners III is one of several investment funds totaling
more than $1 billion that have been managed by Castle Harlan Inc. that
represent major corporate and public pension funds, college endowments,
foundation and individual investors. Since Castle Harlan's founding in 1987,
the firm has completed acquisitions exceeding $3.5 billion.
Castle Harlan's portfolio companies have included Delaware Management
Company, a Philadelphia money-management firm with more than $40 billion in
assets under management; Indspec Chemical Corp., a specialty chemical
manufacturer; Ethan Allen Interiors, the furniture company; and Morton's
Restaurant Group, owner of Morton's of Chicago, the international chain of
steakhouses.
Among its current portfolio companies are Commemorative Brands, Inc., a
leading manufacturer of class rings and other specialty jewelry under
ArtCarved and Balfour brand names, and Statia Terminals Group N.V., one of the
world's largest independent marine terminal companies serving the petroleum
industry. It also owns Universal Compression Inc., one of the world's three
largest independent providers of natural gas compression equipment and
services, primarily to the energy industry.
Castle Harlan was founded by John K. Castle and Leonard M. Harlan,
chairman and president of the firm, respectively. Castle, a pioneer in
institutionalizing private equity investing through limited partnerships, is
former president and CEO of Donaldson, Lufkin & Jenrette, an investment
banking firm. Harlan is founder, former owner and chairman of The Harlan
Company, a diversified real estate and corporate financial advisory firm.
On Sept. 29, AMR announced plans to sell three subsidiaries -- AMR
Services, AMR Combs and TeleService Resources (TSR) -- to increase focus on
its core airline and related technology businesses. It announced the sale of
AMR Combs to BBA Group PLC on Dec. 15, followed by the Dec. 21 announcement of
Platinum Equity Holdings' acquisition of TSR.
Current AMR Corp. news releases can be accessed via the Internet.
The address is http://www.wwflightservices.com.
SOURCE AMR Services
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Related links:
http://www.wwflightservices.com
CONTACT:
Corporate Communications of AMR Corp.,
817-967-1577; or Charles Storer of Castle Harlan, Inc.,
212-371-2200
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