Monomoy Capital-backed ContMid Holdings completed a recapitalization with existing lenders. Proceeds will be used to pay third dividend to ContMid’s shareholders in 2015. The three dividend payments have returned all capital invested in the July 2014 acquisition of ContMid plus a profit for shareholders. ContMid is owned 100 percent by Monomoy and co-investors.
Monomoy Capital Partners, a private equity firm focused on deep value investing and operational improvement in the lower middle market, announced today that its portfolio company, ContMid Holdings, Inc., completed a successful recapitalization with its existing lenders. The proceeds of the recapitalization were used to fund the third dividend paid to ContMid’s shareholders in 2015.
In total, the company’s 2015 dividend payments have returned all of the capital invested in the July 2014 acquisition of ContMid plus a substantial profit for ContMid’s shareholders. Following the recapitalization, ContMid remains conservatively capitalized and positioned for growth with the continued support of Monomoy, a private equity firm with over $1 billion of assets under management. Monomoy, its co-investors and the ContMid management team will continue to own 100% of the business following the recapitalization.
“ContMid’s financial performance has significantly exceeded our expectations over the first 16 months of Monomoy ownership,” said Phil Johnson, the Chief Executive Officer of ContMid. “With the support of the Monomoy team, we have executed a comprehensive business improvement program focused on providing our customers with manufacturing excellence, best-in-class product quality and industry-leading service. Today’s recapitalization validates ContMid’s transformation under Monomoy’s ownership, and our conservative capital structure plus the support of our owners will allow ContMid to grow with our customers over the coming years.”
Monomoy owns ContMid through its second fund vehicle, Monomoy Capital Partners II, L.P. Bank of America and Medley Capital provided ContMid with incremental financing for the recapitalization. Kirkland & Ellis, LLP served as legal counsel to ContMid in the transaction.
About Monomoy Capital Partners
Monomoy Capital Partners is a private equity firm with over $1 billion in committed capital that makes controlling investments in lower middle market businesses in the manufacturing, distribution, consumer products and foodservice sectors. Over the past ten years, Monomoy has closed over 40 middle market acquisitions, and Monomoy companies have produced over $2.5 billion in combined sales and employed more than 5,000 associates across four continents. Monomoy implements customized business improvement programs at its investments that reduce operating expenses, increase profitability and encourage growth. To learn more about Monomoy and its portfolio, please visit the firm’s website at www.mcpfunds.com.
Since forming the firm in 2005, Monomoy has grown its staff from three founders to a team of 25 world-class investment and operating professionals. A 2015 study by Preqin, a leading source of data on the alternative assets industry, named Monomoy Capital Partners II, L.P. the best performing distressed private equity fund raised between 2006 and 2012 and the second best performing distressed private equity fund raised since 1990. Access the 2015 Preqin Alternative Assets Performance Monitor at www.preqin.com.
About ContMid, Inc.
ContMid is a market leader in the design, manufacturing and distribution of custom-engineered metal fasteners to automotive OEMs, Tier I automotive suppliers and industrial manufacturers. The Company produces internally- and externally-threaded nuts and bolts, screws and door strikers and related products for automotive vehicle systems, including restraint systems, airbags, door hardware, and ride control systems. ContMid is the leading provider of Taptite® products, Torx® products and wheel nuts in North America. The company is headquartered in Park Forest, Illinois and operates six manufacturing facilities throughout the Midwest. Please visit www.contmid.com for a detailed description of ContMid and its product line.