The Ranger Review

The Ranger Review

Chapter 5, Issue 1 January 1, 2017

RANGER AEROSPACE These 6 Critical Success

Factors have been

hallmarks for all Ranger

companies over the years: Quality, Safety, and FAA

Compliance Superior Leadership

and Strategic Vision Sales and Marketing

Effectiveness Operational Excellence,

Continuous Improve-ments & Measures

Financial Management

for Superior Results Customer Focus for

Loyalty, Service, Growth

The Ranger Review is a periodic publication for our subsidiaries’ employees and their families. Story suggestions may be sent to the Editor (see back page.)

Ranger Aerospace Still Beating the Odds After

20 Years of Private Equity Aviation Buyouts

Chapter V, Issue I June 2017

Ranger Aerospace, a private equity consolidator and

management holding company specializing in

aerospace operations and aviation services deals since

1997, marked its twentieth

anniversary during March 2017.

Ranger has built three separate

platform companies to over $100

Million revenues each thus far in

its colorful 20 year history, and

has managed as many as

4,250 personnel at 56 airports.

Ranger adds value by bringing

accomplished leaders to bear on

operational improvements and

accelerated growth. Ranger

focuses heavily on operations,

marketing, quality, and people,

with a "Good to Great" incremental approach to business

transformations.

Ranger's latest holdings are: ACL Airshop, which

provides air cargo products and services to airlines

clients at more than half of the world's Top 50 cargo

airports; and InTech Aerospace, which performs MRO

and retrofit services on commercial airliner interiors.

The pivotal investment in ACL Airshop won the Deal

of the Year award for 2016 from M&A Advisor

magazine, an international financial

publication. In earlier aviation ventures,

Ranger Aerospace won similar awards

for Deal of the Year in 2009, and Deal of

the Decade in 2011 (for the decade ending

2010). Ranger's divestiture of Ranger

International Services Group won 3 Deal of

the Year awards in 2012 for the sale of

that aerospace/defense technical services

company to a major international engineering firm.

This 20th anniversary commemorates Ranger's long

history of excellence in the aerospace private

equity field. Since its inception in March 1997 as a

"kitchen table start-up," Ranger's previous large-scale

multi-year and multi-acquisition successes have

included Aircraft Service International Group

(“ASIG”), Keystone Helicopter, Skytanking

GmbH, Composite Technology, Ranger Rotorcraft

Group, Ranger International, the Keystone HeliPlex,

and related ventures under Ranger's quality-centered

management style. Each large

platform with a successful exit

was sold to huge strategic buyers,

who then kept growing the

business. Ranger Aerospace

stemmed from Ranger Partners

Group, was first formed as a "C"-

Corp, and later shifted to a

Delaware "LLC" following the

ASIG divestiture in 2001.

Steve Townes, Ranger Aerospace

founder and CEO of the two

current holding companies said “we are growing both

ACL Airshop and InTech Aerospace. We will do this

steadily like we have before, pacing ourselves carefully

through strategic investments and organic growth,

entering new lines of technical capacity, fostering deep

and continuous operational improvements, expanding

geographically, and possibly acquiring complementary

companies. The flywheel is definitely accelerating."

Ranger Aerospace has been the management stewardship

team for over $450 Million in various buying, selling, and

investing transactions over the past two

decades. Investment returns in each of

Ranger's successful large-scale divestitures

have been superior for the sector, with

"IRR" on its strongest exit slightly over

60%, plus commensurate cash-on-cash

multiples. Townes said: "Our excellent

results, value creation, and sustained

performance are due to outstanding teams

of people. We manage for Quality—

Safety—FAA Compliance, and we have always strived to

be a positive, principled employer for motivated aviation

professionals with the Right Stuff. Our quality awards

and workforce expansions are as important to us as

financial kudos, because it is those fundamentals that

create lasting and growing enterprises." Ranger has

created several thousand new jobs over the past twenty years

by aggressively expanding the large enterprises it has owned.

"“We have always

sought to at least

double our Ranger

enterprises on behalf

of our many aviation

clients” -Steve Townes,

CEO & Founder

“A Kitchen Table Start-Up”

South Carolina

Aerospace Industry

News

5 Aviation High

Schools announced as a

statewide initiative for

workforce development.

McNair Center won a

$628 Million technology

grant from Siemens Corp.

Business Tagline or Motto

Chapter 5, Issue 1 January 1, 2017

Page 2 The Ranger Review

ACL Airshop, a leader in products and services for the global air

cargo industry, announced its long-range worldwide expansion

plans at a press briefing at the annual IATA World Cargo

Symposium in Abu Dhabi in March. Over the past 33 years, ACL

Airshop has become a leading worldwide one-stop shop for

leasing, sales, repair and fleet control of Unit Load Devices

("ULDs") and cargo net/strap manufacturing for the aviation

industry. Today the company operates around the world on

six continents, at more than half of the world's Top

50 air cargo hub airports. One of the unique

aspects of the company's offerings is short-

term rentals and leasing solutions for

airlines' cargo products requirements—

that is where ACL Airshop has made its

strongest reputation for Custom ULD

Solutions.

In 2016, ACL Airshop opened 4 new

hub locations and enhanced 3 others.

New sites include Narita/

Tokyo, Bogota, Mexico City,

and Beijing. Service enhancements were

added at DFW Texas, IAH Houston,

and LAX California. 2016 was a year of

positive transitions and brisk growth of new

sites with the strong new parent company of ACL

Airshop, and now the organization will begin accelerating its

worldwide network investments on behalf of its hundreds of

airlines customers. ACL Airshop serves over 200 airlines of all

sizes and types, currently at 39 major airport locations.

For 2017 and beyond, the Company plans to ramp-up its hub

investments around the world. At the IATA symposium, the

company also rolled out its new logo and completely

revamped web site. This year, the growth will include at least 5

new service hubs, plus 2 new Repair Stations in Bogota and Hong

Kong (adding to the existing service operations at those two key

sites). Hong Kong is the #1 largest air cargo airport in the Asia-

Pacific region, indeed second-only globally to Memphis TN (the

main hub for FedEx). Bogota is the #1 busiest cargo airport in all

of Latin America, and is intended as ACL Airshop's capital city

for that important geographic growth zone.

The company's 2016 investment at Narita Airport/Tokyo with a

complete ULD Repair Station is a classic example of responding

to customers' needs: 60% of all air cargo in and out

of Japan flows through Narita.

Tony Morgan, President & CEO of ACL Airshop, said: "Growing

our network is a simple, customer-driven strategy. We are

building a larger footprint. It makes us an even better partner for

our airline clients. We will expand to a significant majority of the

world's Top 100 air cargo airports in the coming years."

Morgan further commented: "We will grow the network by

providing Custom ULD Solutions via Leasing, Sales,

Manufacturing, Repairs, and Fleet Control. Our expansion

strategy is exciting and well-capitalized: we are creating the

strongest niche leader for Custom ULD Solutions in the world."

ACL Airshop intends to invest for growth in each of its lines of

business and expand geographically to keep pace with

rising industry trends. The headquarters is

near Greenville, SC, and the main

international office is in Amsterdam,

NL. ACL Airshop provides mission-

critical air cargo products and services

to numerous leading air carriers.

Cargo pallets, cargo shipping

containers, straps, nets, hardware,

and other cargo-specific control

products are globally available

24/7/365. ACL Airshop also

provides innovative leasing

programs and control/tracking

services, and operates FAA /

EASA approved repair stations in

multiple locations to repair and overhaul

these assets.

While increasing its operational footprint in North

America, South America, and Europe, ACL Airshop's growth in

recent years has also followed regional trends in the Asia-

Pacific and Mideast regions. The company has a significant

service presence at strategic locations such as Dubai, Hong

Kong, Japan, and mainland China.

The February 2016 majority investment in ACL Airshop by

Ranger Aerospace and its Private Equity partners won "Deal of

the Year" award from M&A Advisor magazine, a worldwide

financial publication.

ACL Airshop Announces Worldwide Expansion Plans

The Senior Team at the Press Conference in Abu Dhabi.

Check out the new logo

and new website!

www.ACLairshop.com

January 1, 2017

Page 3 The Ranger Review

1. I am responsible for knowing and complying

with the laws and regulations that apply to my

personal work. I will always try to choose the

“harder right instead of the easier wrong.”

2. I am responsible for checking the condition of the tools and

equipment I use, and making sure that they stay in proper shape.

3. I know that my work affects safety for those around me, critical

equipment, and aircraft; I will always be careful. If I see some-

thing illegal or unsafe being done, I will stop that action as best I

can and alert my supervisors.

4. I am responsible for following company procedures and/or

FAA /EASA rules that apply to my work site.

5. I am responsible for treating all of our customers and employees

with professionalism, respect, and courtesy. And, I will not lie,

cheat, or steal, nor tolerate those who do.

6. The better I work within our team, the better our team quality will

be. Our customers demand and expect high quality from us, every

time, all the time.

7. I am committed to providing our customers with the most reliable

services and goods possible; they make my paycheck possible.

8. Quality doesn't cost. It pays! It’s what makes us special against

our competitors, and in our customers' eyes. It is always cheaper

to do it right the first time, instead of correcting mistakes.

9. I am committed to continuously improving the quality of our

operations. My goal is zero deficiencies in customer ratings.

10. My work is a visible advertisement for future work. My

"signature" is on everything that I do.

InTech Aerospace, a steadily growing aviation technical services firm

specialized in commercial and military airplane interiors and

components, has become a classic entrepreneurial success story in

Houston, Texas. As experts in aircraft interiors, the company has more

than doubled in size in just the past few years. InTech is riding the growth

wave of long-term market expansion on commercial airlines fleets. InTech

Aerospace finds itself in a period of unprecedented growth. The airlines’ fleets of

large and regional planes are expected to double in their numbers in the next 20 years (forecasts by Boeing

and Airbus), and interiors tend to wear out with heavy use, requiring periodic overhaul and upgrade. Published

reports recently cited over $6.1 Trillion in new orders for commercial airplanes through the year 2037, and all

of those planes (which will fly for 30 years or more) represent an “Installed Base” of many millions of man-

hours of required repairs and refurbishments. That aftermarket phenomenon of recurring repairs is where

InTech Aerospace predicts its most aggressive growth in the next 5 to 10 years. Performing overhaul and

retrofit chores on aircraft interiors and related components, InTech Aerospace today has a client list that

includes regional airlines, mainline carriers, large

OEM’s, aircraft leasing companies, and major MRO

facilities. Known as the “interior experts,” Intech

Aerospace has teams of highly experienced craftspeople

and technicians. InTech Aerospace recently participated

in Aviation Week’s MRO Americas. It is the world’s

largest gathering of aviation maintenance professionals.

Intech will also participate in the premier annual event

ACPC 2017, where it will showcase its capabilities and

services to hundreds of airlines and other clients.

InTech Just Promoted Scott Mowery to Chief

Operating Officer!

InTech Aerospace

CEO Corner

To Fellow Leaders:

Fulltime vigilance on Quality Safety- FAA/ EASACompliance.

Be good employers for our people.

Focus on customers’requirements & measures.

Action orientation, get stuff done.

Leave skid marks!

Steve Townes CEO

Ranger Aerospace stownes(at)rangeraerospace.com

All leaders and managers in the

company are pushing for a breakout year

in 2017.

As stewards of the enterprise, look to

your managers for strong adherence to

timeless values such as:

Set and maintain a clear and

cohesive vision for where we are

taking the company. This applies at

all levels. If you do not understand

your part of the mission, it’s ok to

ask.

Maintain a healthy, nurturing,

positive leadership environment

that respects the individual and

fosters high performance.

Be good, effective leaders in

providing meaningful jobs for our

people, and keeping a brisk tempo

of actions and accomplishments.

Stay mindful that our customers are

measuring our performance

literally every day. High quality

rankings lead to sustained business

and future growth.

“Quality Starts With Me” (This was first written by aircraft technicians in a Ranger enterprise many years ago.)

January 1, 2017

The Ranger Review

Ranger Aerospace is a privately held investment and

management holding company that partners with private equity

institutions to acquire and grow companies in aviation services

and aerospace support operations. Ranger and its co-investors

add value to acquired companies via seasoned veterans

experienced in aviation services, aerospace programs,

engineering, finance, corporate development, MIS, marketing &

strategic planning, Total Quality Management, mergers &

acquisitions, post-merger integration, and turnarounds.

The Ranger Review is a periodic publication for our subsidiaries’ employees

and their families. Story suggestions may be sent to the Editor. To request additional copies of this newsletter, or

to submit ideas and article suggestions, please contact Candace Spradlin, Marketing and Communications Manager, 864.329.9000 or

[email protected]

This newsletter is copyrighted by Ranger Aerospace, 2017, with all rights reserved. Any manner of reproduction or use of editorial or graphic content without permission is

prohibited.

RANGER AEROSPACE

128 Millport Circle Suite 200 Greenville, SC 29607

Phone: 864.329.9000 Web: www.RangerAerospace.com

All employees should feel free

to contact or come visit the

corporate office on an open

door policy. The CEO has an “Electronic Open Door” policy

for any employee wishing to

contact him directly.

Get to know the team in each

subsidiary

ACL Airshop Tony Morgan, President

Gary Langford, CFO

Marc Terpstra, Mng. Director International

Wes Tucker, VP Operations

John Stewart, VP Americas

Jos Jacobsen , Director Europe

Maurice van Terheijden, Director MENA

Pieter van Calcar, Director Asia Pacific

436 Saco Lowell Road

Easley, SC 29640

Phone: 864.466.9000

Web: www.ACLairshop.com

InTech Aerospace Todd Wilkinson, President

Scott Mowery, Chief Operating Officer

Dragon Djordjevic, CFO

Maria Villarreal, Dir. Soft Goods

George Adams, Dir. Quality

4750 World Houston Pkwy

Suite 100

Houston, TX 77032

Phone: 281.810.4400

Web: www.InTechAero.com

Forward Looking Statements: The Company from time to time may discuss forward-looking information. Except for factual historical information, all forward looking statements are estimates by the Company’s management and are subject to various risks and uncertainties that are beyond the Company’s control and may cause actual results to differ materially from management’s expectations.

Good to Great: Why Does Ranger Stress These Principles?

In most examples of effective, even remarkable, good-to-great corporate transformations, you find some of

the same things that we have put into our business plans for ACL Airshop, Intech and Ranger. There is no

single miracle moment or an instantaneous revolution. Instead, successful companies follow a down-to-

earth, pragmatic, committed-to-excellence process - a framework – that keeps a company, its leaders, and its

people on track for the long haul. Like a motor that slowly picks up speed, with steady momentum on its

flywheel, rather than pedal to the metal drag racing. It’s the victory of steadfast discipline over the quick

fix. Rather than adopting catchy slogans, we believe that change and growth come as a result

of relentless small improvements, working to a clear, disciplined plan that is well

communicated and methodically carried out, measuring and adjusting as we go.

5 Things to Remember that are Easy and Clear:

Leadership should be steady, with a clear vision for where the company is going.

The who and the what—get a good team in place at all levels. Manage with facts, including the facts about ourselves, good or bad. Do just a few things passionately and well A disciplined culture of make-it-happen entrepreneurs

ACL Airshop Appoints

Two Senior Executives

InTech Aerospace has commenced substantial

improvements in its main facility near George

Bush International Airport. Scott Mowery,

InTech's Chief Operating Officer, said, "At

Intech Aerospace we are committed to

creating the most positive and efficient work

environment for our employees. Utilizing lean

initiatives and investing in these substantial

facility improvements will enhance that

environment, and further supports delivering

top quality products to our customers in the

most efficient time. We are improving our

capabilities to do more for our airline and

MRO clients, always seeking to exceed

customers’ expectations."

InTech Aerospace announced these facility-

wide improvements on the eve of "MRO-

Americas," the industry's largest trade show

serving the aviation MRO market. The facility

upgrades and shop enhancements will

continue as an investment project through 3rd

Quarter 2017.

InTech Makes Facility Improvements

ACL Airshop has named Steve Townes as

chairman and Gary Langford as chief

financial officer (CFO). President and chief

executive officer, Tony Morgan says:

“Having exceptional leaders like this on our

team is further strengthening our strategy for

global expansion.”

Langford has held senior finance positions

with a number of diverse manufacturing companies, both public and private, and has

owned several entrepreneurial endeavors.

He was the former CFO of Prospect Brands,

a wearable technology company, and of

Revolution Lighting, a NASDAQ company

focused on advanced LED lighting

technologies. Langford says: “I appreciate,

and am honored by this opportunity.

The CFO position allows me to work closely

with an incredible group of people across the

globe in a dynamic company environment.

I’m confident in our ability to work together

and grow as the leader in Custom ULD

Solutions for our customers.”

Both of these executive appointments were

decided on by the ACL Airshop, LLC board

of managers, and affirmed by the board of

directors of Ranger Airshop Holdings.