Carve-Outs Successfully Transformed Into Premier Manufacturer and Supplier of Transmission-Related Products.
Sun Capital Partners, Inc. (“Sun Capital”), a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies, today announced that its affiliated portfolio company Raybestos Powertrain LLC, a leading manufacturer and supplier of transmission-related products, has been acquired by Monomoy Capital Partners and combined with portfolio company Steel Parts Manufacturing, Inc. Terms of the transaction were not disclosed.
Raybestos Powertrain, headquartered in Crawfordsville, Indiana, serves the automotive, off-highway, construction, agricultural and industrial markets. The Company was formed by the combination of two wet friction Original Equipment Manufacturers (OEM) and aftermarket businesses operated by Raytech Corporation which were acquired by an affiliate of Sun Capital in 2008.
Transforming Raybestos Powertrain required a complete restructuring of the business, including rebuilding the OEM division into a viable ongoing business, divesting underperforming segments and product lines, and driving synergies between the two businesses to better serve the OEM/Heavy Duty market. Despite these restructuring initiatives, revenue has increased since the acquisition while focused cost reduction efforts and productivity improvements delivered further improvement. As a result, EBITDA has more than quadrupled since Raybestos Powertrain was acquired in 2008.
“Raybestos Powertrain has really been transformed as a business after successfully completing a deep restructuring, growing sales, and significantly improving efficiency,” said Jonathan Borell, Vice President at Sun Capital Partners. “As a result, the Company has gained prominence across multiple platforms. We believe the combination with Steel Parts is a great strategic fit, and we are confident that Monomoy will grow the Company’s stellar reputation and service capabilities.”
Sun Capital has deep experience in the automotive sector; current affiliated portfolio companies in the automotive sector include Fluid Routing Systems, a designer and manufacturer of fuel management systems and hose extrusion products for major automotive OEMs; Kraco Enterprises, a manufacturer and distributor of automotive aftermarket floor mats, including cargo floor mats for vehicle use; NFP Steering DriveSol, a Brazilian designer and manufacturer of steering columns and assembly components for automobile manufacturers; Vari-Form, a producer and marketer of hydroform intensive body structural products for North American automakers; and Wabash Technologies, a designer and manufacturer of sensor and actuator products for the automotive, heavy-duty truck and off-highway sectors.
Lazard Middle Market acted as financial advisor to Raybestos Powertrain in connection with the sale. Morgan, Lewis & Bockius LLP served as Powertrain’s legal advisor.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in–house operating professionals and experience. Sun Capital affiliates have invested in more than 290 companies worldwide with combined sales in excess of $45 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen. For more information, please visit www.SunCapPart.com.
About Raybestos Powertrain LLC
Raybestos Powertrain LLC, headquartered in Crawfordsville, Indiana, serves the OEM and Aftermarket segments. The Company develops, manufactures and supplies specialty-engineered friction and energy absorption components for wet friction applications for transmission and brake components to the automotive, off-highway, construction equipment, agricultural, heavy duty truck and bus markets. In addition, the Company manufactures and distributes transmission filters, transmission filter kits and other transmission related components to warehouse distributors and various retail operations in the global transportation aftermarket.