25 August 2006
25 August 2006
Adam Aircraft, the designer and manufacturer of advanced carbon composite aircraft for the twin piston and very light jet (VLJ) markets, has completed a $93 million funding round.
The round was led by new investor DCM, a top-performing venture capital firm. Other new investors included Mesirow Financial, W Capital Partners, D.E.Shaw Laminar Portfolios, LLC (a member of the D.E.Shaw group of companies) and Acadia Woods Partners, which joined previous investors Goldman Sachs and Hunt Growth Capital in the round. A sizable portion of the new round was also received from various new European investors. The company plans to use its new capital to accelerate the certification of its A700 AdamJet and the production ramp-up of the FAA-certified A500 piston twin, recently featured in the ""Miami Vice"" motion picture with its signature twin boom, centreline design.
""After looking at a number of emerging companies in the exciting VLJ space, we were particularly impressed with Adam's demonstrated ability to efficiently deploy capital,"" said Rob Theis, DCM general partner. ""The company’s A500 aircraft, currently being delivered to customers, was certified with $80 million of investment, which we consider best-in-class. This track record of cost-effective certification of high-tech composite aircraft, together with their low-risk approach to the derivative A700 VLJ certification program, led us to the conclusion that Adam Aircraft will be at the forefront of this emerging market.""
Adam Aircraft is based in Englewood, Colo., with additional manufacturing facilities in Pueblo, Colo., and Ogden, Utah, and has a staff strength of 600 team members. ""With this funding we have more than doubled our previous capitalization, putting us in a position to accelerate our product development and production growth plans,"" said CEO Rick Adam. ""Our order backlog in excess of 400 aircraft valued at $850 million gives us added confidence that we will be a sustainable and growing employer in Colorado and Utah for some time to come."" ""Our continued ability to raise capital and attract a diversified portfolio of new investors is a clear indication of our leadership in carbon fiber technology and the increasing awareness of the burgeoning VLJ marketplace,"" said Chris Naro, Adam Aircraft CFO. ""Our strong backlog, together with this significant influx of capital, leaves us well-positioned to bring our operations to sustainable profitability.""