New Star Metals, a portfolio company of Insight Equity, has acquired Material Sciences Corporation, a manufacturer of acoustical and coated products primarily used in automotive applications. Insight Equity acquired New Star Metals in August 2012.
“The MSC transaction represents the third add-on acquisition for New Star under our ownership,” said Victor Vescovo, COO & Managing Partner at Insight Equity. “We remain interested in continuing to expand New Star through similar opportunities in the future.”
Material Sciences Corporation (MSC) has revenues of approximately $125 million and is a provider of materials used in acoustical and coated applications such as brakes, body panels, and engine components. MSC has two primary product segments: acoustical (anti-noise and vibration products, including the company’s trademarked Quiet Steel reduced vibration metal) and coated (decorative and protective metal coatings). The company’s products are used by the appliance, automotive, building systems, computer, construction, furniture, HVAC, lighting, and telecommunications industries. Automobile manufacturers are among the company’s largest clients. MSC (NASDAQ: MASC) was founded in 1971 and is headquartered near Chicago in Elk Grove Village, IL (www.matsci.com).
“We are excited to complete the purchase of Material Sciences. The addition of this company to New Star enhances our strategy to participate in the light-weighting of automobiles to meet the pending CAFE standards,” said Pat Murley, CEO of New Star.
New Star Metals provides metal processing, building products and supply chain management across an array of end markets. The company operates through five divisions: Canfield Coating, Electric Coating Technologies, Material Sciences Corporation, Premier Resource Group, and World Class Corrugating. New Star is headquartered near Chicago in Burr Ridge, IL (www.newstarmetals.com).
“We are thrilled to complete another public-to-private transaction and we look forward to working with Pat Murley and the New Star team to realize the potential synergies from this acquisition,” said Jack Waterstreet, a Principal at Insight Equity.
Insight Equity makes control investments in middle market, asset intensive companies across a range of industries and specializes in partnering with companies experiencing some level of underperformance. Insight Equity also seeks complex and challenging situations, including public to private transactions, corporate divestitures, bankruptcies, restructurings and private family ownership. The firm is based near Dallas in Southlake, TX and also has an office in New York (www.insightequity.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 3-31-14
