A US based private equity investment firm, the Sterling Group, has announced completion of the acquisition of the Stackpole International business from Gates Canada – a subsidiary of Pinafore Holdings PV.
Headquartered in Ontario, Canada, Stackpole is a manufacturer and supplier of highly-engineered oil pumps and powdered metal components to automotive original equipment manufacturers. Founded in 1952, the company was acquired by Gates in 2003.
Stackpole’s products are used in powertrain (engine and transmission) platforms that have an average lifecycle of ten to fifteen years. These platforms underpin approximately 400+ vehicle nameplates. Stackpole currently has twelve manufacturing facilities and technical centres in North America, Europe, China and Korea.
The acquisition was financed with equity from Sterling Group Partners III, L.P., Current Capital LLC and several other co-investors. Senior debt financing was provided by RBC Capital Markets, BNP Paribas and UBS and mezzanine debt was provided by Hancock Capital Management, Fifth Street and Global Leveraged Capital.
“The entire management team is thrilled to partner with Sterling to return Stackpole to a standalone business. Over the next few years, our business will have the opportunity to expand in North America and significantly increase its presence in Europe and Asia. We feel that Sterling’s historical experience in effectively guiding the growth of manufacturing businesses such as ours, as well as their access to capital to support our growth needs, will be tremendous assets for our company,” stated Peter Ballantyne, President and CEO of Stackpole.
Kent Wallace, a Partner of Sterling noted, “We are very excited to have the opportunity to work with Pete, the rest of the Stackpole management team and the employees to continue to expand the company’s global manufacturing platform. We are confident the company will continue to build on its outstanding reputation for consistently manufacturing and delivering critical components.”
Edited by: Paul Whittaker, Editor ipmd.net, [email protected]