Prophet Equity, through its second fund Prophet Equity II LP, has acquired Derby Fabricating Solutions from private equity firm Capital Partners which had acquired the company in September 2012.
Derby is one of the largest manufacturers of die cut nonmetallic materials that are used by Tier 1 and Tier 2 automotive manufacturers in noise, vibration and harshness abatement components, and acoustic insulation. More simply, Derby’s products are designed to reduce automobile interior noise levels. The company was founded in 1977 and has production locations in Kentucky, Ohio and Tennessee and is headquartered in Louisville (www.derbyfab.com).
“The entire Derby management team is excited about our new partnership with Prophet Equity,” said Derby President and COO Jason Kellams. “Prophet Equity’s data-driven approach aligns perfectly with Derby’s culture of safety and continuous improvement as we continue to capitalize on growth opportunities.”
“Derby is ideally positioned to be the go-to supplier of components to improve the quiet cabin experience,” said Brian Hegi, Managing Director at Prophet Equity. “As voice recognition technologies evolve alongside vehicle light-weighting trends, the demand for Derby’s capabilities will continue to grow. We look forward to partnering with Jason, Derby’s senior leadership team, and longtime board members, Shawn Sullivan and Alan Loyd, to support Derby’s strategic plan.”
Prophet Equity makes control investments in strategically strong, lower and middle market businesses with significant value creation potential. These are typically found in partnerships, corporate carve-outs, divestitures and non-strategic business units of larger companies. The firm seeks to make equity investments of $5 million to $50 million in companies with annual revenues of up to $500 million and enterprise values of $10 million to $250 million. Sectors of interest include financial services; healthcare; manufacturing; natural resources and energy; technology related; automotive & transportation; business and consumer services; consumer products; defense & aerospace; and distribution. The firm is located in Southlake, TX (www.prophetequity.com).
“Given the growing consumer demand for a quiet interior experience, Derby is positioned to outperform the automotive market through all phases of the automotive cycle,” said Greg Balliro, Senior Vice President at Prophet Equity.
Capital Partners, the seller of Derby, makes control or substantial minority equity investments in middle-market manufacturing, distribution and service companies. Target companies will be based in North America and have revenues from $20 million to $250 million and EBITDA of $4 million to $25 million. Capital Partners was founded in 1982 and is headquartered in Norwalk, CT (www.capitalpartners.com).
© 2017 Private Equity Professional | April 11, 2017
