The Carlyle Group has completed the sale of Metaldyne, a manufacturer of highly engineered metal-based components, to American Securities.
Carlyle Strategic Partners II, a $1.35 billion distressed investment fund, led a group of creditors in the purchase of Metaldyne in October 2009, and partnered with Metaldyne’s management on the company’s successful recovery. Since Carlyle’s acquisition, Metaldyne has grown revenue by approximately 70 percent and employment by approximately 30 percent.
Metaldyne is a manufacturer of highly engineered metal-based components for automotive and light vehicle engine, transmission and driveline applications. Products include powder metal engine connecting rods, engine bearing caps, engine cylinder oil jets, transmission sub assemblies, forged differential gears and pinions, differential assemblies, engine balance shaft modules, transmission shafts, and engine crankshaft dampers. The company, headquartered in Plymouth, MI, has more than $1 billion in revenue and serves its global customers with 4,000 employees at 25 facilities in 13 countries throughout North America, Europe, Latin America and Asia (www.metaldyne.com).
“We teamed with Metaldyne at the height of the Great Recession and the North American automotive industry crisis, believing we could grow the company. Carlyle led the infusion of cash to stabilize Metaldyne’s financial situation and allow a great business to emerge from underneath an unsustainable balance sheet. With a deep management team and a committed workforce able to focus on its business, the new Metaldyne is positioned for continued growth and success as a global automotive manufacturing supplier,” said Michael Stewart, Carlyle Managing Director and Co-Head of Carlyle Strategic Partners.
The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The Carlyle Group employs 1,300 people in 32 offices across six continents and is based in Washington, DC (www.carlyle.com).
“Metaldyne has been a highly successful investment for our fund investors. We exceeded our investment goals for Metaldyne, and we are gratified that the company is well positioned for the future. Metaldyne’s talented management team and employees should be proud of our collective accomplishments,” said Shary Moalemzadeh, a Carlyle Managing Director.
American Securities invests from $150 million to $500 million of equity capital in businesses with $500 million to $2 billion of revenues and $50 million to $200 million of EBITDA. Investments are undertaken with conservative financial structures that typically include only equity and senior debt. Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products. American Securities has offices in New York and Shanghai (www.american-securities.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 12-19-12
