Cyprium Partners has sold its investment in Alpha Sintered Metals to the management of the company and O2 Investment Partners. Key Principal Partners, the predecessor to Cyprium Partners, first invested in Alpha Sintered Metals in 2004.
Alpha Sintered Metals (ASM) is a designer and manufacturer of powdered metal components, such as spur, bevel, and helical gears; sprockets, cams, and flanges. These components are used primarily in small engines, transmissions and mechanical drive applications for the outdoor power equipment (including lawn and garden), automotive, and general industrial markets. The company is headquartered in Ridgway, PA (www.alphasintered.com).
“ASM has been a prime example of the type of initiatives we pursue with our portfolio companies,” said Leland Lewis, a Managing Partner at Cyprium. “We team with management to assist with organic growth, acquisitions and operational improvements in order to position our companies to withstand a changing marketplace and to take advantage of growth opportunities. We wish the ASM team much success as they start the next chapter in the company’s history.”
In addition to its original subordinated debt and equity position, Cyprium invested additional capital in ASM to allow the company to establish off-shore manufacturing operations as well as to facilitate the acquisition of a competitor in the stainless steel exhaust and turbocharger components market.
Cyprium Partners provides capital for acquisitions, growth, shareholder or partnership buyouts, refinancings and personal dividend distributions, without requiring majority control. The firm invests subordinated debt, preferred stock and/or common stock of $10 million to $60 million per transaction in privately-held companies based in the US and Canada that have more than $10 million of EBITDA. Cyprium will also selectively invest in control (majority ownership) positions. In June 2011, as a result of the Dodd–Frank Wall Street Reform and Consumer Protection Act, the investment and finance teams at Key Principal Partners resigned to form Cyprium Partners. The firm has offices in Cleveland, New York, and Chicago (www.cyprium.com).
Stout Risius Ross (www.srr.com) led the sale process for Cyprium.
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-27-14