M&A Deal Summary

Manulife Investment Management, Fifth Street Capital and The Sterling Group Acquire Dexter Axle Co.

On November 1, 2012, mezzanine finance firm Manulife Investment Management, lender Fifth Street Capital and private equity firm The Sterling Group acquired automotive company Dexter Axle Co. from Tomkins Industries. for 360M USD

Acquisition Highlights
  • This is Manulife Investment Management’s 2nd, Fifth Street Capital’s 1st and The Sterling Group’s 1st transaction in the Automotive sector.
  • This is Manulife Investment Management’s 2nd, Fifth Street Capital’s 4th and The Sterling Group’s largest (disclosed) transaction.
  • This is Manulife Investment Management’s 15th, Fifth Street Capital’s 61st and The Sterling Group’s 17th transaction in the United States.
  • This is Manulife Investment Management’s 1st, Fifth Street Capital’s 2nd and The Sterling Group’s 1st transaction in Indiana.
Investment Fate
  • Dexter Axle Co. merged with another company in 2016.

M&A Deal Summary

Date 2012-11-01
Target Dexter Axle Co.
Sector Automotive
Buyer(s) Manulife Investment Management
Fifth Street Capital
The Sterling Group
Sellers(s) Tomkins Industries.
Deal Type Divestiture
Deal Value 360M USD
Advisor(s) Credit Suisse Investment Banking
Fidus Partners
Jamieson Corporate Finance (Financial)
Morrison & Foerster (Legal)

Target

Dexter Axle Co.

Elkhart, Indiana, United States
Dexter Axle Co., Inc. is a designer and manufacturer of trailer axle, brake and suspension assemblies and related replacement parts used primarily in the industrial and utility trailer.

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Buyer(S) 3

Buyer

Manulife Investment Management

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1998
Size Large
Type Sector Agnostic
DESCRIPTION

Manulife Investment Management is a private investment group that provides mezzanine as well as non-controlling equity capital to middle-market businesses. Manulife Investment's target investment size is $10 to $50 million per transaction. The Group prefers opportunities located in the US. Manulife Investment Management was established in 1998 and maintains offices in Boston and New York City.


DEAL STATS #
Overall 16 of 26
Sector: Automotive M&A 2 of 3
Type: Divestiture M&A Deals 2 of 3
State: Indiana M&A 1 of 1
Country: United States M&A 15 of 24
Year: 2012 M&A 5 of 5
Size (of disclosed) 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-10-01 Swanson Industries

Morgantown, West Virginia, United States

Swanson Industries provoides manufacturing, remanufacturing, repair, and distribution services of mining equipment, hydraulic cylinders, and related industrial equipment across the United States. Swanson Industries was founded in 1964 and headquartered in Morgantown, West Virginia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-08-15 Shape Technologies Group

Kent, Washington, United States

Shape Technologies Group is a manufacturer of proprietary ultra-high pressure (“UHP”) pumps, waterjet cutting systems, and integrated robotic automation solutions that enable the processing of modern industrial materials. SHAPE offers customers a productivity solution that maximizes machine uptime, minimizes post-processing, and decreases cycle times. SHAPE serves customers in mission critical environments for industries including food processing, material handling, aerospace, automotive lightweighting, and general industrial markets. Shape Technologies Group is based in Kent, Washington.

Buy $148M
DESCRIPTION

Fifth Street Capital is a public investment firm focused on providing mezzanine financing to support expansions, acquisitions, recapitalizations, and management buyouts of middle-market US based companies. Fifth Street looks to invest between $5 and $50 million per transaction. Sectors of interest include consumer products, healthcare services, manufacturing, medical device manufacturing, food services, business services, restaurants, speciality retail, logistics, and value added distribution. Fifth Street Capital is based in White Plains, New York.


DEAL STATS #
Overall 62 of 70
Sector: Automotive M&A 1 of 1
Type: Divestiture M&A Deals 2 of 3
State: Indiana M&A 2 of 2
Country: United States M&A 61 of 69
Year: 2012 M&A 11 of 13
Size (of disclosed) 4 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-11-01 CPS

Dublin, Ohio, United States

CPS is a provider of outsourced pharmacy services to hospitals and integrated health systems. CPS offers a suite of services, information technology and data informatics, including pharmacy management, technology-based tools and data analytics. CPS was founded in 1971 and is based in Dublin, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-12-20 Garretson Resolution Group

Cincinnati, Ohio, United States

Garretson Resolution Group is a neutral provider of services to parties who are settling personal injury claims. Company provides outsourced medical lien resolution and complex settlement administration services for law firms, corporations, insurance companies, plaintiffs and defendants in mass tort, class action and single event litigations.

Buy -
Buyer

The Sterling Group

Houston, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1982
PE ASSETS 9.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Sterling Group is a private equity firm focused on acquiring middle-market businesses within basic manufacturing, industrial services, and distribution. Sterling looks for companies valued from $100 to $1000 million with positive cash-flow, strong market positions, and potential to grow. Sterling avoids investments in financial services, real estate, healthcare, or information technology companies. The Sterling Group was formed in 1982 and is based in Houston, Texas.


DEAL STATS #
Overall 20 of 54
Sector: Automotive M&A 1 of 2
Type: Divestiture M&A Deals 5 of 9
State: Indiana M&A 1 of 1
Country: United States M&A 17 of 51
Year: 2012 M&A 1 of 1
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-11-01 Velcon Filters

Colorado Springs, Virginia, United States

Velcon Filters LLC is a niche manufacturer of filtration systems, including vessels and replacement cartridges, that meet specific requirements for fluid filtration processes in a variety of domestic and international end-markets.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-10-01 Safe Fleet

Belton, Missouri, United States

Safe Fleet is a provider of safety solutions for fleet vehicles. Safe Fleet owns a portfolio of brands that help its customers improve the safety and efficiency of their fleets, their operators, passengers and pedestrians. Safe Fleet was founded in 2013 and is based in Belton, Missouri.

Buy -

Seller(S) 1

SELLER

Tomkins Industries.

Olathe, Kansas, United States

Category Company
Founded 1967
Sector Manufacturing
DESCRIPTION

Tomkins Industries, Inc. manufactures components for residential, commercial, and industrial buildings.


DEAL STATS #
Overall 2 of 2
Sector: Automotive M&A 2 of 2
Type: Divestiture M&A Deals 2 of 2
State: Indiana M&A 1 of 1
Country: United States M&A 2 of 2
Year: 2012 M&A 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-08-25 Formed Fiber Technologies

Auburn, Maine, United States

Formed Fiber Technologies, Inc. is a manufacturer and supplier of thermoformed automotive non-woven products for North American automotive OEMs and Tier I suppliers. FFT's products are used as trunk liners and for interior trim applications on cars, SUVs and light trucks.

Sell -