automotive machining

Industrial Opportunity Partners (IOP) has merged two of its Fund II portfolio companies, Betty Machine Company and GT Technologies. IOP acquired Betty Machine in July 2013 and GT Technologies in February 2017. Following the merger, Betty Machine will become an operating unit of GT Technologies.

Betty Machine is a precision machining manufacturer of close tolerance parts primarily for automotive applications. The company supplies products, through its Tier 1 and Tier 2 customers, to auto original equipment manufacturers (Ford, GM, Chrysler, Honda, and Toyota) as well as other manufacturers. Volumes range from low volume prototypes to high volume production parts. Most of the company’s products are used in assemblies that span multiple vehicle platforms and run for several years. Betty Machine operates out of a 75,000 sq. ft. facility in Hendersonville, TN (near Nashville) (www.bettymachine.com).

GT Technologies is a supplier of gasoline and diesel engine valve train systems and components used in the automotive, heavy-duty truck and off-road vehicle industries. Valve trains are mechanical systems that control the operation of the valves in an internal combustion engine. The company’s products include rollers, roller finger followers, hydraulic lash adjusters, stamped rocker arms, roller tappets, and valve train actuation assemblies.

GT Technologies was founded in 1905 and is headquartered in the Detroit suburb of Westland, MI, with manufacturing and assembly operations in Toledo and Defiance, OH; Tallahassee, FL; Curitiba, Brazil; and near Prague in Mlada Boleslav, Czech Republic. The company also has a prototyping center near Toledo in Millbury, OH (www.gttechnologies.com).

“The strategic merger of Betty Machine into GT Technologies enhances GT Technologies’ machining capabilities, broadens its customer base and provides it with a strategically located facility. I believe that Betty Machine will thrive under the leadership of the GT Technologies management team,” said Phil Fioravante, an IOP Operating Principal.

“On behalf of IOP, we are excited for the combination of the technical and product capabilities of Betty Machine and GT Technologies,” said Kyle Hood, a Director of IOP. “We believe this merger further positions the GT Technologies platform for long-term success.”

IOP focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $400 million. The firm targets businesses with strong product, customer, and market positions and provides both management and operational resources to support sales growth and operational improvements. IOP is headquartered in the Chicago suburb of Evanston (www.iopfund.com).

© 2018 Private Equity Professional | July 13, 2018

Kensington Capital Partners has acquired Kenona Industries for $85 million in partnership with the company’s management team and co-investors.

Kenona Industries is a provider of high-volume precision machining services to automotive Tier 1 suppliers. The company’s products are utilized in steering, powertrain, noise and vibration, and exhaust assemblies in over 45 different 2017 automobile nameplates, and the company’s components are in over 6 million of the 17 million US vehicles produced annually. Kenona’s revenue in 2017 was $53 million. The company, led by CEO Nathaniel Rich, operates out of two facilities in Grand Rapids, MI totaling 120,000 square feet (www.kenona.net).

“We are very pleased to partner with Kensington. Our team is impressed with their knowledge and expertise, and we feel Kensington’s core values and culture are aligned with ours. Our team is excited about the next chapter in our company’s growth story,” said Mr. Rich.

“We are impressed with the strong management team at Kenona and are excited by the growth prospects of the company,” said Martin Kent, Senior Vice President at Kensington. “The company has a strong culture of innovation and operational excellence. Kenona is well-positioned in the marketplace, with excellent customer relationships. We are looking forward to working with the management team to continue to grow the business.”

Kensington Capital Partners invests in mid-market buyouts of mature profitable businesses with total enterprise values typically ranging from $50 million to $500 million. The firm also invests in other strategies including venture capital and growth equity. Kensington was founded in 1996 by its Chairman and Managing Director Tom Kennedy and has offices in Toronto, Calgary and Vancouver (www.kcpl.ca).

© 2018 Private Equity Professional | June 8, 2018