October 8, 2012
American Securities and KPS Capital Partners Announce Completion of HHI Group Holdings Transaction
American Securities LLC, a U.S. private equity firm, and KPS Capital Partners, a manager of special situation funds, today announced that American Securities has acquired HHI Group Holdings, a manufacturer of highly engineered, safety-critical forged components for automotive customers, from KPS. Financial terms of the transaction were not disclosed.
HHI is the largest North American manufacturer of highly engineered, safety-critical forged components for automotive customers, principally in the light vehicle market, and a leading manufacturer of complex, highly engineered powdered metal powertrain components and wheel bearings.
HHI was created by KPS in September 2005 in partnership with George Thanopoulos, Chief Executive Officer, through a series of acquisitions including Jernberg Forge, Impact Forge, FormTech Industries and Cloyes Gear and Products, among others. In addition, HHI, through its subsidiary, Kyklos Bearing International, acquired Delphi Corporation's North American wheel bearings business.
"We are proud of the significant organic growth of the HHI business and are grateful to KPS for providing our team with leadership, expertise, capital and other resources as we built this platform," said Thanopoulos. "We look forward to partnering with American Securities to continue our commitment to quality, innovation, customer service and manufacturing excellence."
"HHI is an excellent fit in our portfolio of companies as a leader in its market of highly specialized products," added Kevin S. Penn, Managing Director at American Securities. "We look forward to working with a highly talented management team as we continue to strengthen and grow this business in the automotive-component market."
Said Michael Psaros, a Managing Partner of KPS, "HHI is a validation of the KPS investment strategy, and we take immense pride in the Company's accomplishments. HHI is the result of five unique acquisitions and subsequent turnarounds of companies that were formerly operating in bankruptcy or in distress. Under our ownership, these assets were transformed into a diversified, value-added, highly specialized company in the automotive industry. We congratulate and thank George Thanopoulos and his management team for their strategic vision and brilliant tactical execution. We also thank the United Auto Workers (UAW), the United Steelworkers (USW) and Workers United (SEIU) for their critical contributions toward the success of HHI."
Jenner & Block served as legal counsel to HHI with respect to the transaction, Paul Weiss Rifkind Wharton & Garrison LLP served as legal counsel to KPS, and Weil, Gotshal and Manges LLP served as legal counsel to American Securities. Goldman, Sachs & Co. acted as financial advisor to KPS and HHI with respect to the transaction.