M&A Deal Summary

Industrial Opportunity Partners and Patriot Capital Acquire GT Technologies

On February 7, 2017, private equity firms Industrial Opportunity Partners and Patriot Capital acquired automotive company GT Technologies from American Securities

Acquisition Highlights
  • This is Industrial Opportunity Partners’ 8th and Patriot Capital’s 3rd transaction in the Automotive sector.
  • This is Industrial Opportunity Partners’ 20th and Patriot Capital’s 75th transaction in the United States.
  • This is Industrial Opportunity Partners’ 3rd and Patriot Capital’s 4th transaction in Michigan.

M&A Deal Summary

Date 2017-02-07
Target GT Technologies
Sector Automotive
Buyer(s) Industrial Opportunity Partners
Patriot Capital
Sellers(s) American Securities
Deal Type Secondary Buyout
Advisor(s) Houlihan Lokey (Financial)

Target

GT Technologies

Westland, Michigan, United States
GT Technologies is a provider of custom-engineered gasoline and diesel engine valvetrain actuation components and assemblies to the global automotive, heavy-duty truck, and off-road vehicle industries. The Company's products include rollers, roller finger followers (RFFs), hydraulic lash adjusters (HLAs), stamped rocker arms, roller tappets, and valvetrain actuation assemblies. GT Technologies was founded in 1905 and is headquartered in Westland, Michigan. with manufacturing and assembly operations in Toledo and Defiance, Ohio, Tallahassee, Fla. and Curitiba, Brazil, and a prototype center in Millbury, Ohio.

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Buyer(S) 2

Buyer

Industrial Opportunity Partners

Evanston, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2005
PE ASSETS 1.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Industrial Opportunity Partners is a private equity firm focused on acquiring and managing middle-market manufacturing and value-added distribution businesses. IOP looks to invest $15 to $100 million in companies with revenues between $50 and $500 million with an EBITDA of $5 to $50 million. Sectors of interest include building products, electronics, foundry, and casting products, precision machining, stamped and fabricated products, automotive components and steel/metal processing. IOP has a particular investment focus on enhancing the operations and optimizing the cost structures of businesses. Industrial Opportunity Partners was formed in 2005 and is based in Evanston, Illinois.


DEAL STATS #
Overall 22 of 32
Sector (Automotive) 8 of 8
Type (Secondary Buyout) 4 of 5
State (Michigan) 3 of 4
Country (United States) 20 of 30
Year (2017) 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-01-11 Union Corrugating

Fayetteville, North Carolina, United States

Union Corrugating is a manufacturer of metal roofing systems and roofing components for use in residential, commercial, and post-frame/agricultural applications. Union Corrugating was founded in 1946 and is based in Fayetteville, North Carolina.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-04-26 KIC

Vancouver, Washington, United States

KIC LLC is a provider of wheel-end components for medium and heavy-duty trucks and trailers. KIC supplies brake drums, rotors, hub & drum assemblies, steel wheels and aluminum wheels to both original equipment manufacturers and aftermarket distributors. KIC designs and tests its own products and partners with contract manufacturers located throughout the world.

Sell -
Buyer

Patriot Capital

Baltimore, Maryland, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Size Large
Type Sector Agnostic
DESCRIPTION

Patriot Capital is a private investment firm that provides equity and junior capital to support acquisitions, growth capital financings, management buyouts, and recapitalizations of middle-market companies. The Firm looks to invest $5 to $25 million in businesses generating revenues of $10 to $200 million. Areas of interest include business and consumer services, consumer products, niche manufacturing and distribution, education, e-commerce, application software, transportation, and telecom services. Patriot focuses its investment activity with the Mid-Atlantic, Midwest, and Southern areas of the US. Patriot Capital is based in Baltimore, Maryland.


DEAL STATS #
Overall 75 of 108
Sector (Automotive) 3 of 6
Type (Secondary Buyout) 8 of 14
State (Michigan) 4 of 4
Country (United States) 75 of 108
Year (2017) 3 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-01-23 Universal Aerospace

Arlington, Washington, United States

Universal Aerospace is a manufacturer and supplier of machined and sheet metal parts to the aerospace industry. Universal Aerospace was founded in 1990 and is based in Arlington, Washington.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-03-28 GroupAero

New York, New York, United States

Aerospace Holdings, Inc. is a provider of advanced engineering, design and manufacturing services to space, commercial aerospace and defense markets. Aerospace Holdings is based in New York City.

Sell -

Seller(S) 1

SELLER

American Securities

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
PE ASSETS 26.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

American Securities is a large private equity firm that typically partners with management when pursuing company acquisitions. American Securities typically targets US-based companies and generally seeks to commit $300 to $700 million per transaction. Areas of interest include consumer products, restaurants, healthcare, industrial, aerospace, defense, agriculture, environmental, paper/packaging, energy, and specialty chemicals. The Firm was originally formed in 1947 as the family office for William Rosenwald, an heir to the Sears Roebuck & Company, and began accepting outside investors in 1994. American Securities is headquartered in New York City.


DEAL STATS #
Overall 32 of 51
Sector (Automotive) 3 of 3
Type (Secondary Buyout) 10 of 20
State (Michigan) 2 of 2
Country (United States) 31 of 50
Year (2017) 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-10-06 Henry

El Segundo, California, United States

Henry is a manufacturer of roofing and roof maintenance products. Henry also manufactures complete lines of driveways coatings, commercial specialty products, and building envelope systems. Henry professionals offer designers, contractors, and building owners a combination of technical experience and a commitment to provide quality products. Henry was founded in 1981 and is based in El Segundo, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-03-14 Air Methods

Greenwood Village, Colorado, United States

Air Methods is a provider of air medical emergency transport services and systems throughout the US. The Company's Air Medical Services (AMS) Division provides air medical transportation services to the general population as an independent service and to hospitals and other institutions under exclusive operating agreements. Air Methods was formed in 1980 and is based in Greenwood Village, Colorado.

Buy $2.5B