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Monomoy Buys Steel Parts Manufacturing

Monomoy Capital Partners said Thursday that it has bought Steel Parts Manufacturing from Resilience Capital Partners. Financial terms weren’t announced. Tipton, Ind.-based Steel Parts makes components for automotive transmissions and other motion applications.

PRESS RELEASE

Monomoy Capital Partners, L.P., a New York private equity fund focused on value investment and business improvement, announced today that it has acquired the stock of Steel Parts Manufacturing, Inc. (Steel Parts) from Resilience Capital Partners.  Terms of the transaction were not disclosed.
Steel Parts is a manufacturer of components for automotive transmissions and other motion applications. The company manufactures precision components for transmissions in the automotive and heavy-duty markets, along with products for suspension systems, heavy-duty brake programs and steering applications. Headquartered in Tipton, Indiana, Steel Parts employs approximately 200 team members at its 180,000 square foot manufacturing facility.
Steel Parts is a new platform acquisition for Monomoy Capital Partners I, Monomoy’s current fund vehicle. “Steel Parts fits squarely within the Monomoy portfolio. The company is a strong leader in a niche industrial market,” said Nate Bard, a Monomoy Vice President. “We are excited to partner with the Steel Parts team to further enhance a sound business by applying the operational improvement program to Steel Parts that we have applied to our other automotive and manufacturing businesses.  We will immediately look to expand Steel Parts by acquiring other niche stamping applications.”
“We have a great deal of confidence in the Monomoy team and look forward to developing our partnership,” said Bob Potokar, the Chief Executive Officer of Steel Parts. “We believe the Monomoy team’s extensive manufacturing knowledge, great business culture and core values, and their strong working relationship with the United Steelworkers, will provide us with strategic capital and operational resources to pursue growth opportunities, improve operations on the plant floor and expand our overall reach in North America.”

Richard Newman of Atlantis Associates introduced Steel Parts to Monomoy. Paul Pollock of Crowell & Moring (formerly of Katten Muchin Rosenman) represented Monomoy in the transaction. Crowe Horwath provided accounting advice. Andre Augier of Quarton Partners advised Resilience Capital Partners in the sale.

About Monomoy Capital Partners Monomoy Capital Partners is a private equity firm with $700 million of assets under management that makes controlling investments in middle-market companies. The Fund has completed 33 transactions in the smaller end of the middle-market over the past five years and currently owns 11 businesses that collectively employ more than 5,000 people. Monomoy implements customized business improvement programs in all portfolio companies that reduce operating expenses, increase profitability and encourage profitable growth. For additional information on Monomoy and its portfolio companies, please visit www.mcpfunds.com.