Gamut Capital Management has recapitalized Luxembourg-based International Automotive Components Group, a provider of automotive components and systems. WL Ross and Co. LLC and Franklin Mutual Advisers LLC will remain IAC’s majority shareholders. As part of the transaction, IAC will issue $215 million in senior secured notes due April 2023 to Gamut Capital. Also, Gamut will take a minority stake in IAC. Perella Weinberg Partners LP is serving as financial adviser to IAC while Jefferies Group LLC is doing likewise for Gamut.
LUXEMBOURG, April 6, 2018 /PRNewswire/ — International Automotive Components Group S.A. (“IAC”), a global automotive and mobility leader in lightweight and new-material interior solutions, today announced it has secured new financing commitments that significantly strengthen its balance sheet and enhances its financial flexibility.
As part of the recapitalization, IAC will issue $215 million of Senior Secured Notes due April 2023 to funds managed by Gamut Capital Management LP (“Gamut”), a New York-based middle market private equity firm. The proceeds, along with cash on hand, will be used to refinance IAC’s $300 million 9.125 percent Senior Secured Notes due June 1, 2018. Gamut will also acquire a minority equity interest in IAC and nominate representatives to the board. WL Ross and Co. LLC (“WL Ross”), a division of Invesco Ltd., and Franklin Mutual Advisers LLC, will remain the company’s majority shareholders.
Stephen Toy, senior managing director and co-head of WL Ross, said, “This is an exciting day for IAC, its partners and employees. This transaction signals strength and confidence in IAC’s business plan and positions the company for sustainable, long-term success.”
Stan Parker, founding partner of Gamut, added, “IAC is a market leading business with substantial scale, a blue-chip customer base and numerous growth opportunities. We are excited to be supporting IAC and its management team, as well as partnering with WL Ross and Franklin Mutual Advisers, as they continue to make progress in driving transformational improvements across the business.”
The transaction is subject to customary closing conditions and is expected to close prior to the end of April.
Perella Weinberg Partners LP is serving as financial advisor to IAC and Jones Day is serving as its legal counsel. Jefferies Group, LLC is serving as financial advisor to Gamut and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as its legal counsel.
About IAC Group
Headquartered in Luxembourg, International Automotive Components (IAC) is a leading global supplier of automotive components and systems, including instrument panels, console systems, door panels, headliners and overhead systems to automakers around the world. The company’s 2017 sales were an estimated $4.4 billion. IAC Group operates more than 50 manufacturing facilities in 16 countries. The company has more than 60 total locations in 19 countries, including 19 design, technical and commercial centers, and employs more than 22,000 people globally. For more information, visit www.iacgroup.com.
About Gamut Capital Management
Gamut Capital Management is a New York-based private investment firm managing $1 billion in assets focused on the middle market. Gamut was founded in 2015 by Stan Parker and Jordan Zaken who have over 35 years of combined private equity investing experience across a wide range of industries, in a broad spectrum of traditional and non-traditional private equity structures, and throughout economic cycles. Gamut’s senior deal professionals have executed investments in over 30 companies in North America and Europe. To learn more, please visit www.gamutcapital.com.
About WL Ross & Co. LLC
WL Ross & Co. LLC is a private equity firm specializing in middle market, restructurings, buyouts, turnarounds and special situations. The firm is wholly owned by Invesco and part of its Invesco Private Capital Division.