CMC Electronics is a designer and manufacturer of electronics for the commercial and military aviation industry.

www.esterline.com

Investment

C$70 million

Fund

ONCAP I

Period

April 2001 – March 2007

ONCAP Team

Michael Lay
Gregory Baylin

Transaction Summary

ONCAP, together with certain co-investors and management completed a going private transaction of CMC Electronics ("CMC") in April 2001.

Business Description

Based in Ville St-Laurent, Québec, CMC was a diversified company that designed, manufactured, sold and supported high technology electronic products for a wide range of military and commercial applications. CMC was later transformed into a focused aviation electronics business that supplied products and services to major defense contractors and subcontractors, government agencies, commercial aviation companies and major North American and international airlines. Key products included avionics equipment for aircraft flight decks and cockpit systems, aircraft satellite communication antennae, aviation infrared enhanced vision systems and certified aviation GPS receivers.

Accomplishment and Outcome

ONCAP sought to build CMC into a more focused aviation electronics business by divesting non-core assets, continuing to develop new products to meet market demand, implementing cost reduction and process improvement programs and investing in complementary acquisitions to further build core capabilities.

The divestiture of non-core assets, the sale of CMC’s majority stake in NovAtel Inc. and the ultimate sale of CMC to Esterline Corporation in March 2007, generated total realized proceeds of $296 million, which represents a 4.2x gross multiple of capital invested and a 35.4% gross IRR over the six-year investment period.