Compass Automotive Group Inc., a provider of aluminum and magnesium component solutions to automakers and auto suppliers, has acquired the aluminum die casting and machining operations of Citation Corp. No financial terms were disclosed. Compass is a portfolio company of Monomoy Capital Partners.
Compass Automotive Group, Inc, a leading provider of aluminum and magnesium component solutions to car makers and Tier I automotive suppliers, today announced that it has acquired the aluminum die casting and machining operations of Citation Corporation (“Citation”), a full-service supplier of metal components to the transportation and industrial industries. Compass will absorb the Citation business, located in Grand Rapids and Lowell, Michigan, into its current die cast operations, which produce highly engineered aluminum and magnesium components utilized in steering, engine, and safety systems for nearly every automaker in North America. Terms of the transaction were not disclosed.
Compass, a portfolio company of Monomoy Capital Partners, L.P., operates a broad automotive platform that manufactures safety-critical aluminum and magnesium automotive components utilizing high pressure die casting, squeeze casting, and a proprietary VRC/PRC casting process. Compass’s principal customers include Asian, European, and North American OEM’s, as well as major Tier 1 suppliers.
“With efficient casting equipment and in-house machining capability, Citation’s operations are a great complement to the Compass platform,” said Jim Squatrito, CEO of Compass Automotive Group. “Despite its current turmoil, the auto industry is here to stay, and Compass will continue to seek additional market share and assets as the automotive supply chain continues to consolidate. The acquisition of these Citation facilities extends our operations into machining and greatly expands our offering of high-quality and cost-effective components to the industry.”
“The Citation acquisition is an important further step in building a strong Monomoy platform in the safety critical automotive components manufacturing space,” said Justin Hillenbrand, a Monomoy partner. “The Grand Rapids and Lowell facilities are valuable assets that will strengthen Compass in the short term and position the Company to grow as the economy stabilizes. Compass remains a financially stable business in a very difficult industry, and Monomoy continues to review a compelling set of acquisition opportunities in the automotive supply chain that can add value and breadth to the Compass business platform.”
About Compass Automotive Group, LLC
Compass Automotive Group, LLC is a leading provider of engineered component solutions to OEM’s and Tier I automotive suppliers. It was formed in July 2007 by Monomoy Capital Partners, L.P. to consolidate safety critical component manufacturers in the automotive supply chain. Compass is the corporate parent of Casting Technologies Company, a casting manufacturer utilizing proprietary squeeze casting and VRC/PRC processes to produce safety critical, premium grade aluminum suspension components, cross-members and compressor scrolls; Magnesium Aluminum Corporation, a die cast manufacturer of aluminum and magnesium steering wheels, steering components, and airbag enclosures; and SRC, the leading North American manufacturer of magnesium flux, a refining agent used in the production of industrial aluminum and magnesium. Compass employs more than 600 team members in Detroit and Fruitport, Michigan; Franklin, Indiana; Cleveland, Ohio; Matamoras and Chihuahua, Mexico; and produces parts for cars, motorcycles and light trucks sold in North America, Europe and Asia.
About Monomoy Capital Partners, L.P.
Monomoy Capital Partners, L.P. is a $280 million private equity fund that makes controlling investments in middle market companies that require operational or financial restructuring. Monomoy targets fundamentally sound businesses with revenues of less than $300 million and acquires businesses through bankruptcy proceedings, out-of-court restructurings, corporate divestitures and other complex transactions. The Fund has completed 21 transactions over the past 36 months in the smaller end of the middle market and currently owns 11 platform business that collectively employ more than 9,000 people. For additional information on Monomoy and its portfolio companies, please visit www.mcpfunds.com.