Stant Corp., a Connersville, Ind.-based maker of fuel system and vapor emission control products for automotive and industrial applications, has filed for Chapter 11 bankruptcy protection. The 111 year-old company said that it had between $50 million and $100 million in assets and debts. H.I.G. Capital acquired Stant Corp. last summer from Tompkins PLC for an undisclosed amount.
Stant Corporation (“Stant” or the “Company”), a leading, integrated manufacturer of highly engineered fluid systems for the global automotive and industrial original equipment markets and automotive aftermarket announced that, in order to complete a restructuring and permanently improve its capital structure, the Company and certain of its affiliates elected to file voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. Stant expects operations to continue as usual during the reorganization process and to emerge quickly from Chapter 11 this fall.
“Following a careful review, Stant’s management and board of directors unanimously determined that a restructuring, expedited through a Chapter 11 process, represents the best long-term solution for our customers, suppliers, and employees,” said Marlon Bailey, President and Chief Executive Officer of Stant. “This process will allow us to continue operating our business as usual and to continue servicing our customers with absolutely no disruption.”
“We have secured DIP financing from our existing senior lenders and an affiliate of H.I.G. Capital, LLC, which will provide liquidity during this process to ensure an uninterrupted supply of goods and services and provide for other cash requirements; fund liabilities; and provide contingency funding to handle any potential unexpected needs. “
Additionally, Stant has secured a fully financed stalking horse bid from an affiliate of H.I.G. Capital, LLC, which is being financed by the Company’s senior lender group. The bid, which is subject to the court approved process, is intended to provide the Company with a smooth and quick emergence from bankruptcy.
About Stant Corporation:
Stant Manufacturing, headquartered in Connersville, Indiana, also has facilities in Pine Bluff, Arkansas, Mexico, China, and the Czech Republic. Founded in 1898, Stant has earned its reputation for quality and innovation in the automotive industry. Stant is recognized as the world’s leading supplier of automotive and industrial fuel, oil and radiator caps, fuel vapor control valves and thermostats for both the original equipment markets and the automotive aftermarket.
About H.I.G. Capital:
H.I.G. Capital is a leading global private equity investment firm with more than $7.5 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, and San Francisco in the U.S., as well as affiliate offices in London, Hamburg and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of well managed manufacturing and service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding, H.I.G. invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes companies with combined revenues in excess of $7 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.