Monomoy Capital Partners has completed the sale of Continental Midland, a maker of metal fasteners, to Agrati Group.
Continental Midland (CMG) designs, manufactures and distributes custom-engineered metal fasteners to automotive companies, Tier I automotive suppliers and industrial manufacturers. The company’s products include internally- and externally-threaded nuts and bolts, and screws that are used in restraint systems, airbags, door hardware, and ride control systems. The company, led by CEO Phil Johnson, is headquartered south of Chicago in Park Forest, IL and operates six manufacturing facilities throughout the Midwest (www.contmid.com).
“Monomoy has a deep bench of talented investment and operating professionals committed to working with middle market companies and they were an invaluable partner throughout the transformation of Continental Midland over the past two years,” said Mr. Johnson.
The sale of Continental Midland is expected to produce a 4x return on investment for Monomoy. “Continental Midland is a great example of Monomoy’s core investment strategy,” said Stephen Presser, a Partner at Monomoy. “In July of 2014 we purchased a family-owned collection of related manufacturing businesses, leveraged the firm’s unique operational capabilities to drive free cash flow and increase earnings, and successfully sold CMG as a growing company to a strategic buyer. Our approach to value creation created substantial returns for our investors over a 25-month hold period in a challenging industry.”
Monomoy makes control investments of debt and equity of $25 million to $150 million in companies with $100 million to $600 million in annual sales. Sectors of interest include manufacturing, distribution, and consumer products. The firm is headquartered in New York (www.mcpfunds.com).
“We acquired CMG with the goal of rationalizing its cost structure, optimizing its product mix, professionalizing management, and positioning the company for growth,” said Jaime McKenzie, a Director at Monomoy. “With a new management team in place, CMG is now among the leaders in quality, service and new product development for both the automotive and industrial fastener markets.”
The Agrati Group is a maker and distributor of fastening systems – such as bolts, screws, nuts and rivets – used in automotive components, appliances, construction and agriculture equipment, and heavy trucks. Including the operations of Continental Midland, the Agrati Group will now have annual revenues of over €640 million (US$700 million), with 12 manufacturing plants, 5 logistic centers and 2,500 employees. The company is headquartered in Veduggio con Colzano, Italy (www.agrati.com).
William Blair & Co. (www.williamblair.com) was the financial advisor to Continental Midland and Duff & Phelps (www.duffandphelps.com) was a special advisor to Monomoy. Kirkland & Ellis (www.kirkland.com) provided legal counsel to both Continental Midland and Monomoy.
© 2016 Private Equity Professional • 9-8-16
