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CHARLESBANK CAPITAL
PARTNERS & PENSKE CAPITAL PARTNERS CO-LEAD $115
MILLION RECAPITALIZATION OF UNIVERSAL TECHNICAL INSTITUTE
Phoenix, AZ, April 8, 2002 - Universal
Technical Institute, Inc. (UTI) announced that Charlesbank
Capital Partners, LLC and Penske Capital Partners LLC
have invested $45.5 million in equity to lead a recapitalization
of the Company, which is the premier provider of technician
education services in North America. The capital will
be used to reduce leverage and provide equity for future
growth. As part of the transaction, the Company also
refinanced its senior debt with a new $70 million credit
facility underwritten by GE Capital Commercial Finance,
Antares Capital and Royal Bank of Scotland. In addition
to Charlesbank and Penske, significant ownership stakes
in the Company will continue to be held by UTI founders
John White and Bob Hartman, management, and The Jordan
Company LLC, which sponsored an LBO of UTI in 1998.
Founded in 1965, Phoenix-based UTI offers accredited
degree and diploma programs through its seven post-secondary
Universal Technical Institute, NASCAR Technical Institute
and Motorcycle and Marine Mechanics Institute campuses.
Additionally, UTI offers manufacturer-specific graduate-level
training through its 21 Custom Training Group facilities
nationwide. UTI's program roster includes automotive,
diesel, motorcycle, marine, heating, ventilation, air
conditioning and refrigeration (HVAC/R), and collision
repair and refinishing. The firm has strategic relationships
with leading manufacturers in all of its programs, including
several major automotive, motorcycle and marine manufacturers,
Hot Rod Magazine, NASCAR, Snap-On Tools, DuPont and
Encompass.
UTI is a clear leader in the highly fragmented technician-training
industry. "Our manufacturer-focused education philosophy
and broad geographic presence, together with strong
sales and marketing efforts and exclusive relationships
with many industry leaders, give us a significant competitive
advantage," says Bob Hartman, CEO of UTI. "We
are pleased to have raised capital that will help us
expand our business. The experienced teams at Penske
and Charlesbank will be a valuable strategic resource
as we move ahead."
UTI has demonstrated consistent growth in revenue and
profitability in recent years, with historically high
returns on invested capital. "UTI's strong performance
is a testament to a sound business model and a deeply
experienced management team. We believe the Penske organization,
through our investments in United Auto Group, Penske
Truck Leasing and Penske Automotive, as well as our
relationships with other leading automotive and transportation
companies, will help take the Company to the next level
in addressing the needs of our manufacturer-partners,"
says Roger Penske, Chairman of Penske Capital Partners.
"UTI has the leading franchise in a very dynamic
part of the post-secondary education industry. We see
tremendous opportunity for continued growth as the Company
seeks to expand existing programs and open new campuses
while continuing to train students for productive careers
in industry," says Michael Eisenson, Managing Director
and CEO of Charlesbank Capital Partners.
Further information about UTI can be found on the Company's
web site at www.uticorp.com.
Charlesbank Capital Partners, LLC, is a Boston-based
private equity and real estate investment firm with
more than $2 billion of capital under management. Charlesbank
Equity Fund V is a $590 million private equity fund
focused on middle-market management-led buyouts and
growth capital financings, typically investing $20 million
to $75 million per transaction in companies with enterprise
values of $50 million to $500 million. Charlesbank seeks
to partner with strong management teams and other value-added
investors to build companies with real competitive advantage
and excellent prospects for growth.
For more information on Charlesbank, visit www.charlesbank.com.
Founded in 1997, Penske Capital Partners established
a $325 million fund to undertake leveraged investments
and reorganization activities in the transportation
and transportation services industries. The fund was
formed in partnership with Penske Corporation, GE Equity
and Aon Insurance.
The Jordan Company LLC (TJC) is a New York-based investment
firm specializing in leveraged buyouts and private-company
recapitalizations. TJC purchases and recapitalizes privately
held companies in partnership with management, providing
members of management with a meaningful equity stake.
The firm acts as an investor and partner, working closely
with its portfolio companies to provide strategic counsel,
arrange capital for expansion and advise on mergers
and acquisitions. The firm has more than $1 billion
in capital under management.
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