New York-based private equity firm Crestview Partners and CITIC Capital, a private equity firm located in Beijing and Shanghai, China, have closed their buy of Stackpole International from the Sterling Group and Current Capital. No financial terms were disclosed, although some outlets report the deal to be valued at US$512 million. Morgan Stanley, Nomura Securities International and UBS Investment Bank served as M&A advisors to Crestview. Stackpole president and CEO Peter Ballantyne will remain both in his position and on the company’s board of directors. Based in Ancaster, Ontario, Stackpole is a supplier to automotive original equipment manufacturers. Update: The company was acquired by Sterling through a corporate carve-out from Gates Canada in 2011.
New York – October 11, 2013 – Stackpole International (“Stackpole”) today announced that funds managed by Crestview Partners (“Crestview”), a New York-based private equity firm , along with CITIC Capital (“CITIC”), a private equity firm based in Beijing and Shanghai, and members of Stackpole’s management, have completed the acquisition of Stackpole from the Sterling Group, a middle market private equity firm based in Houston, and Current Capital, a private equity investing and management services firm based in New York. Based in Ancaster, Ontario, Stackpole is a leading supplier to automotive original equipment manufacturers and tier 1 suppliers of critical, highly engineered transmission and engine oil pumps and powder metal components for automotive powertrains. Terms were not disclosed.
Peter Ballantyne will continue to lead Stackpole as 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 significant global 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.
Tom Murphy, Co-Founder of Crestview, said “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.”
Mr. Ballantyne added, “We look forward to Stackpole’s exciting next chapter in partnership with Crestview and CITIC. We believe Crestview’s experience investing in and growing automotive companies, CITIC’s experience helping businesses like ours grow in China, and Sir Nick Scheele and Jason Luo’s breadth of global experience in the automotive industry, will add significant insight to the company in supporting our customers and executing on Stackpole’s future growth plans.”
Morgan Stanley & Co. LLC, Nomura Securities International, Inc. and UBS Investment Bank acted as M&A advisors to Crestview. Kirkland & Ellis LLP acted as Crestview’s legal advisor.
About Stackpole International
Stackpole International is a leading supplier to automotive original equipment manufacturers and tier 1 suppliers of critical, highly engineered transmission and engine oil pumps and powder metal components for automotive powertrains. Stackpole is headquartered in Ancaster, Ontario, and maintains a global manufacturing footprint across North America, Europe and Asia. More information about Stackpole can be found at www.stackpole.com.
About Crestview Partners
Founded in 2004, Crestview Partners is a value-oriented private equity firm based in New York with approximately $4 billion of capital under management. The firm is led by former partners and leaders in the private equity business and senior management of Goldman Sachs and Morgan Stanley. Crestview has been an active investor in the automotive supply industry since 2007. More information about Crestview can be found at www.crestview.com.
About CITIC Capital
CITIC Capital Partners is a leading China-based private equity firm managing US$2.8 billion of committed capital from over 60 global institutional investors with offices in Hong Kong, Beijing, Shanghai, Tokyo, and New York. CITIC Capital’s dedicated international fund invests globally in companies which have a China angle and leverages CITIC Capital’s extensive China resources to help its companies realize their full potential in China. CITIC Capital focuses on industrial and consumer businesses that have leading technology, brands and products. More Information on CITIC Capital can be found at www.citiccapital.com.
Photo courtesy of Stackpole International.