SOURCE: W. P. Carey & Co. LLC

August 31, 2005 09:15 ET

W. P. Carey Provides LBO Financing to Riverlake Partners

Acquires Scottish Manufacturing Facility From Pressac plc

NEW YORK, NY -- (MARKET WIRE) -- August 31, 2005 -- Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it provided Riverlake Partners, LLC, a private equity buyout fund focused on traditional manufacturing industries, acquisition financing to complete its leveraged buyout of the Decorative Systems Division of Pressac plc, a UK-based public company. Pressac plc specializes in the supply of electrical and electronic components to the automotive and telecommunications markets on a global basis. The Decorative Systems Division is the world's largest supplier of dials and appliqués to the automotive industry.

W. P. Carey, on behalf of its affiliated income generating real estate fund Corporate Property Associates 16 - Global (CPA®:16 - Global), acquired Pressac Decorative Systems' manufacturing facility, located in Bishopbriggs, Scotland, for $12.2 million (£ 6.76 million). Riverlake used proceeds from this sale-leaseback to complete its $30 million acquisition. The new company will be renamed Advanced Decorative Systems (ADS).

Alistair D. Calvert, a Director at W. P. Carey & Co. LLC, said, "We are pleased to have provided this acquisition financing to Riverlake Partners in their LBO of Pressac's Decorative Systems Division. This transaction is a perfect example of how the capital generated from a sale-leaseback can be a significant piece of any LBO transaction and should not be overlooked as private equity firms seek financing to complete a deal. As a pioneer of the sale-leaseback with more than 30 years of experience in customizing every transaction to meet the financing of our clients we're pleased to have completed this latest transaction and look forward to a long-term relationship with Riverlake Partners."

Erik Krieger, a managing member of Riverlake Partners, said, "The financing provided by W. P. Carey's sale-leaseback was important to the successful completion of our LBO. This capital will help ensure ADS' future growth potential as it seeks to expand into additional markets."

The facility, which was completed in 2000, will be leased under a triple net lease for an initial period of 20 years. This acquisition adds to W. P. Carey's growing portfolio of managed properties throughout Europe. Prior transactions have included: the Belgian Government (Belgium); Carrefour (France); Hellweg Die Profi-Baumärkte GmbH & Co. KG (Germany); Plantasjen ASA, (Finland, Sweden); Pohjola Non-Life Insurance Company Ltd. (Finland); Polestar Group (United Kingdom); the Thales Group SA (France), and TietoEnator Plc. (Finland).


Riverlake Partners, LLC, is a private equity buy out fund with a targeted focus on traditional economy manufacturing, distribution and service businesses. Riverlake seeks controlling interests in companies through commitments of $3 to $8 million in a variety of leveraged buyout, consolidations, recapitalizations and growth financing transactions. Riverlake has offices in Portland, OR, and Chicago, IL, and a national network of partners and advisors.


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 $7.3 billion in assets.

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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.

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