Hidden Harbor Capital Partners has acquired Cloyes Gear & Products Inc’s aftermarket division. No financial terms were disclosed. LBC Credit Partners provided financing for the transaction. Configure Partners was financial adviser to Hidden Harbor on the deal. Based in Fort Smith, Arkansas, Cloyes is a maker of timing drive systems and components for replacement applications in the automotive aftermarket and high-performance racing segment.
Fort Lauderdale, Florida, May 4, 2018 – Hidden Harbor Capital Partners (“Hidden Harbor”), an operationally focused private equity firm specializing in control investments in lower middle market companies, has acquired the aftermarket division of Cloyes Gear & Products, Inc. (“Cloyes”), a subsidiary of American Axle & Manufacturing, Inc.
Based in Fort Smith, Arkansas, and founded in 1921, Cloyes is a global leader in the design, development, manufacturing, and distribution of timing drive systems and components for replacement applications in the automotive aftermarket and high-performance racing segment.
“Cloyes, in its nearly 100-year operating history, has established itself as the premier brand in timing systems and related components, recognized for its superior quality products, engineering capabilities, broad product portfolio, and customer service,” said Andrew Joy, a Principal at Hidden Harbor.
“In partnership with Cloyes’ management, we look forward to continuing to provide superior service and products to our existing customers, as well as executing on geographic and product expansion growth opportunities,” added Chris Paldino, a Founding Partner at Hidden Harbor.
“The Cloyes aftermarket team is very pleased to be partnering with Hidden Harbor,” said Mick Jordan, President of Cloyes. “Working in conjunction with the Hidden Harbor team will allow us to achieve our sales growth initiatives, including an expanded product line and new global distribution. Their operational expertise, standard operating procedures, and process improvement knowledge coupled with Cloyes’ experienced senior management team provide a strong formula for creating future growth.”
Hidden Harbor’s acquisition of Cloyes closed on April 4, 2018. LBC Credit Partners provided financing for the transaction. Configure Partners served as financing advisor to Hidden Harbor. Donnelly Penman & Partners served as an advisor to American Axle & Manufacturing, Inc. Terms of the transaction were not disclosed.
Cloyes, based in Fort Smith, AR, is the North American leader and global designer, developer, manufacturer and distributor of timing drive systems and components for the automotive aftermarket. Its products are mission critical components for engine performance and function used in high-performance and replacement applications. Cloyes serves a broad customer base, including wholesale distributors, national and local retailers, re-packagers, and production engine builders, and sells its products under the Cloyes® brand throughout North America and Dynagear® in Mexico. To learn more, visit www.cloyes.com.
About Hidden Harbor Capital Partners
Hidden Harbor Capital Partners is a private equity firm with an operations soul and intense passion for building great companies. Hidden Harbor brings large-scale, private equity experience and resources to the lower middle market with a focus on value-oriented, operationally intense situations. Our principals are Investor Operators® who bring over 55 years of both extensive transaction and operating experience to truly understand your business. As one team, we partner and work hand-in-hand with our portfolio companies to drive business successes. To learn more, visit www.hh-cp.com.
AAM (NYSE: AXL) is a premier, global leader in design, engineering, validation and manufacturing of driveline, metal forming, powertrain, and casting technologies for automotive, commercial and industrial markets. Headquartered in Detroit, AAM has over 25,000 associates operating at more than 90 facilities in 17 countries to support our customers on global and regional platforms with a focus on quality, operational excellence and technology leadership. To learn more, visit www.aam.com.