Apollo’s Latest is as Easy as ABC

Apollo’s Latest is as Easy as ABC

Apollo buys 51% interest of lightweight plastics parts maker

Apollo has completed its acquisition of 51% of publicly traded ABC Technologies for C$277 million or C$10 per share.

ABC (TSX: ABCT) is a manufacturer and supplier of thermoplastic, custom compounds, and engineered lightweight plastics used in the North American light vehicle industry including more than 25 original equipment manufacturers. ABC’s products are present on 75% of all light vehicles and used on each of the top 15 light vehicle models in North America.

ABC is organized into six product groups – HVAC systems, interior systems, exterior systems, fluid management, air induction systems, and flexible systems – and its services include manufacturing; design; engineering; material compounding; and machine and tool building.

Toronto-headquartered ABC, led by CEO Todd Sheppelman, was founded in 1974 and has more than 6,150 employees at 33 locations in Canada (10), US (8), Mexico (6), China (4), Brazil, Spain, Germany, Poland, and Japan.

Over the past four quarters – ending March 2021 – ABC had revenues of $820 million, adjusted EBITDA of $76 million, and $285 million of long-term debt. For 2021, the company is estimating an adjusted EBITDA of $162 million. A copy of ABC’s most recent financial presentation to shareholders is available HERE.

ABC was acquired by Cerberus Capital Management in 2016 and was taken public in February 2021. ABC’s acquisition by Apollo was first announced in April 2021. Cerberus will be maintaining a minority interest in ABC.

“It has been an honor to support ABC in its transformation from a family-owned business to a leading, publicly traded company in the automotive plastics industry,” said Dev Kapadia, a senior managing director at Cerberus. “In this next chapter as a minority shareholder, we look forward to our continued partnership with ABC as it reaches even greater heights on a global scale.”

“The closing of the transaction with Apollo is a great milestone for all of us at ABC as we continue to execute on our plan to build the company into an even stronger, global player in the automotive technical plastics space,” said Mr. Sheppelman. “We look forward to beginning our next fiscal year with our newly constituted board and are excited for all of the organic and inorganic growth opportunities ahead.”

“We’re excited to work with Todd and the management team as ABC continues to innovate and answer the needs of the automotive industry for greater light-weighting in the vehicles of today and tomorrow,” said Michael Reiss, a partner at Apollo. “Across new business wins, upcoming launches, and opportunities for consolidation, ABC is highly active, and we look forward to collaborating and supporting their efforts going forward.”

New York City-headquartered Apollo (NYSE: APO) has more than $323 billion of assets under management and more than $89 billion dedicated to private equity. The firm has acquired greater than 150 companies since its founding in 1990.

Cerberus has approximately $55 billion of assets under management and invests in credit, private equity, and real estate platforms. The firm was founded in 1992 and is headquartered in New York City.

© 2021 Private Equity Professional | June 29, 2021

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