Current Capital Participates in Acquisition of Automotive Supplier Stackpole International
PRNewswire (August 2, 2011)
Current Capital LLC (“Current Capital”), a private equity investment and portfolio management firm focused on middle market and smaller companies in the industrials and services industries, announced the acquisition of Stackpole International (“Stackpole”), the former Powertrain division of Gates Canada, a leading designer and manufacturer of highly engineered oil pumps and powdered metal components for automotive manufacturers and other customers.
Current Capital participated in the acquisition with The Sterling Group, Inc. (“Sterling”), the majority investor in Stackpole. The selling stockholder is Gates Canada’s owner Tompkins plc which was acquired in 2010 by Onex Corporation and the Canada Pension Plan Investment Board. The business will remain headquartered in Ancaster, Ontario and the management team led by President and Chief Executive Officer Peter Ballantyne will continue to run the business.
“Stackpole is now a well-capitalized, stand-alone company, and we are excited to work with our financial sponsor partners who are knowledgeable about our business and committed to helping us grow. We will continue to provide high-quality products for the major automotive manufacturers and other important companies while building on our leading market position in North America and developing a major presence in Europe and Asia. I am delighted that Jonathan Foster of Current Capital, who has significant experience in the automotive sector, will be a member of the Board of Directors,” said Peter Ballantyne, President and CEO of Stackpole.
Jonathan Foster, Founder and Managing Director of Current Capital, commented that “Stackpole is the type of business that will benefit from Current Capital’s focus on helping industrial and services companies realize their full potential. This investment is consistent with our focus on companies that can benefit from our industry knowledge, operating experience, financial expertise and valuable strategic perspective.”
Kent Wallace, a Partner of Sterling, noted, “We are very excited to have the opportunity to work with the entire Stackpole management team to build on its outstanding reputation for consistently manufacturing and delivering critical components for automotive manufacturers and other customers and expand the company’s global manufacturing platform. Current Capital’s automotive knowledge and participation in this investment has and will continue to add meaningful value, too.”
This acquisition was financed with equity from Current Capital Automotive LLC, Sterling Group Partners III, L.P. and several other co-investors. Senior debt financing was provided by RBC Capital Markets, BNP Paribas and UBS, and mezzanine debt was provided by Hancock Capital Management, Fifth Street and Global Leveraged Capital. Guggenheim Securities, LLC acted as financial advisor to Current Capital and Sterling. Winston & Strawn LLP provided legal counsel to Current Capital.
About Stackpole International
Founded in 1952 and headquartered in Ancaster, Ontario, Stackpole is a designer and manufacturer, and often a sole source provider, of highly-engineered oil pumps and powdered metal components for automotive original equipment manufacturers. These components are typically specified on long-term engine and transmission platforms with 10 to 15 year lives and are found on some 400 different vehicles or nameplates. Stackpole’s automotive customers rely on the company’s ability to design and produce highly durable components for their most important and widely marketed platforms. The company is one of the top automotive oil pump producers in the world. It pioneered variable vane oil pump technology, a design that saves energy by allowing variable rather than fixed pump displacement. It is also a leading fabricator of complex powdered metal components, including gears, sprockets, assemblies and pump components. Stackpole has twelve manufacturing facilities and technical centers in North America, Europe, China and Korea.
About Current Capital LLC
Current Capital LLC (www.currentcap.com) is a private equity and portfolio company management firm comprised of operating executives and investment professionals that helps create value, primarily in middle market and smaller companies in the industrials and services industries. The firm brings an integrated operating, finance and investment approach to two large sectors, industrials and services, where it has extensive experience, relationships and perspectives. In addition to its private equity business, Current Capital helps to manage portfolio companies and “orphan assets” for other investors as well as provides related services such as serving on Boards of Directors.