Turnspire Capital has acquired MPI Products, a maker of high-precision metal components used in automotive, medical and industrial applications.
MPI Products is a Tier 1 supplier of high-precision, fineblanked metal components used in automotive systems including engines, chassis, axles, exhausts, transmissions and seating. MPI also uses its fineblanking capabilities to make complex micro parts used in medical applications including scissors, staples, bone plates, and pacemakers.
Fineblanking is a specialty type of metal stamping that is ideal for manufacturing geometrically-complex automotive components. By using fineblanking, manufacturers can achieve part characteristics such as uniform flatness, dimensional accuracy, and near-net finish that is nearly impossible using a conventional metal cutting or punching process.
MPI’s automotive customers include several large original equipment manufacturers and global Tier 1 automotive suppliers. In addition, MPI has other capabilities that include value-added finishing services and assembly. MPI was founded in 1969 and is headquartered in the Detroit suburb of Rochester Hills with manufacturing facilities in Minneapolis, Minnesota; Deerfield, Wisconsin; Knox, Indiana; and Queretaro, Mexico.
“We are excited to bring MPI’s world-class fineblanking capabilities, well-positioned facilities and highly skilled workforce into the Turnspire portfolio,” said Abel Osorio, a partner at Turnspire. “MPI is conservatively capitalized, with ample resources to invest in transformative process improvements, research and development, significant organic growth and to fund strategic acquisitions.”
With the closing of the MPI acquisition, Turnspire has named Trevor Myers as MPI’s president and chief executive officer. Mr. Myers is an experienced automotive executive and a Turnspire executive in residence.
“I’m honored to join such a storied and remarkable company,” said Mr. Myers. “Over decades MPI has established itself as the leading supplier of formed metal products in the North America automotive industry with a persistent focus on quality and customer service. Turnspire’s operational support and strategic guidance will enable MPI to better serve both new and existing markets while rapidly expanding into adjacent markets that benefit from fineblanked processes.”
Mr. Myers previously served as president and CEO of Cloyes Gear from 1997 to 2017. Cloyes was acquired by KPS Capital Partners in 2006 and sold, as part of HHI Group, to American Securities in 2012. In 2014, American Securities merged three of its automotive parts companies (HHI, Metaldyne, and Grede) to form Metaldyne Performance Group (MPG). MPG went public in December 2014 and was acquired by American Axle & Manufacturing in April 2017.
“Turnspire relentlessly seeks opportunities where we are uniquely positioned to collaborate with our Executives in Residence and network of operating experts to create the most value, and we are thrilled to acquire MPI and bring in an executive of Trevor’s caliber as CEO,” said Ilya Koffman, Turnspire’s managing partner. “I have known Trevor for well over a decade and have seen him drive domestic and international growth, customer diversification and substantial operational improvements.”
New York City-based Turnspire invests in companies with revenues between $50 million and $400 million and valuations up to $125 million. The firm prefers companies that are underperformers and/or in need of an operational turnaround. Sectors of interest include aerospace and defense; automotive; capital equipment; chemicals; consumer; construction and building materials; food and beverage; industrial equipment; logistics; metals and metal fabrication; paper and packaging; and plastics and synthetic materials.
Houlihan Lokey was the financial advisor to MPI Products.
© 2020 Private Equity Professional | January 23, 2020