Crestview Partners and CITIC Capital have completed the acquisition of Stackpole International, a manufacturer of transmission and engine oil pumps, from the Sterling Group and Current Capital. Sterling had acquired Stackpole through a corporate carve-out from Tomkins in August 2011.
Stackpole International is a supplier to automotive original equipment manufacturers and Tier 1 suppliers of transmission and engine oil pumps and powder metal components for automotive powertrains. Stackpole’s EBITDA has increased by more than 80% over the last two years, significantly outpacing domestic automobile production growth of about 25%. The company is headquartered in Ancaster, Ontario (www.stackpole.com).
“Sterling’s focus on corporate carve-outs and our operationally focused approach to investing in the middle market continue to generate strong returns for our partners, as evidenced by the successful outcome with Stackpole,” said Kent Wallace, Partner at The Sterling Group. “We were pleased to partner with an outstanding management team to guide the company through this period of very exciting growth, offering superior products and execution to an expanded list of customers globally.”
Peter Ballantyne will continue as Stackpole’s President and CEO and as a member of the company’s board of directors. Joining Mr. Ballantyne on the board will be representatives from Crestview and CITIC, as well as two directors with automotive industry experience: Sir Nick Scheele, former COO of Ford Motor Company, who will serve as the company’s new Chairman and Jason Luo, current Chief Executive Officer of automotive supplier and Crestview portfolio company Key Safety Systems.
“We are excited about partnering with management and veteran industry executives to help drive Stackpole’s next stage of growth. Peter and his team have done a tremendous job managing Stackpole, and the company is poised to expand internationally, capitalize on the increasing trend towards vehicle fuel-efficiency and continue its market leadership in the automotive supply industry,” said Tom Murphy, Co-Founder of Crestview Partners.
Crestview Partners invests from $100 million to $250 million in companies with enterprise values up to $3 billion. Sectors of specific interest include media, financial services, healthcare and energy. The firm will invest in other industries where its relationship network and senior operating capabilities provide an advantage. The firm was founded in 2004 and is based in New York (www.crestview.com).
CITIC Capital invests in companies that are seeking to access the China market. Sectors of interest include industrial and consumer businesses. The firm has $2.8 billion of committed capital and is investing its third fund, CITIC Capital International Partners III, which was raised earlier this year. CITIC has offices in Hong Kong, Beijing, Shanghai, Tokyo, and New York (www.citiccapital.com).
Morgan Stanley & Co., Nomura Securities and UBS Investment Bank acted as M&A advisors to Crestview. The Sterling Group and Current Capital were advised on the sale by Barclays.
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-14-13
