December 12, 2014
American Securities Announces Metaldyne Performance Group IPO
American Securities LLC, a New York-based private equity firm, today announced the pricing of the initial public offering (“IPO”) for Metaldyne Performance Group Inc. (“MPG”) (NYSE: MPG).
MPG was formed in August 2014 through the merger of HHI Group Holdings, Metaldyne LLC, and Grede Holdings LLC to create a new holding company. All three companies were previously majority owned by affiliates of American Securities. HHI was acquired by American Securities and certain members of HHI management in October 2012. Metaldyne was acquired by American Securities and certain members of Metaldyne management in December 2012. Grede was acquired by American Securities and certain members of Grede management in June 2014.
MPG is a leading provider of highly-engineered components for use in powertrain and safety-critical platforms for the global light, commercial and industrial vehicle markets. The company produces these components using complex metal-forming manufacturing technologies and processes for a global customer base of vehicle OEMs and Tier I suppliers. MPG’s components help OEMs meet fuel economy, performance and safety standards.
Affiliates of American Securities sold a total of 10,000,000 shares in the IPO, raising $150 million of proceeds. The issue price was set at $15.00, which brings MPG’s equity market capitalization over $1 billion. The underwriters will have a 30-day option to purchase up to an additional 1,500,000 shares at the IPO price.
“We would like to congratulate MPG’s management team on a successful IPO,” commented Kevin S. Penn, a Managing Director at American Securities. “Creating MPG through the merger of HHI, Metaldyne, and Grede was a significant undertaking, and the team has done an excellent job in combining the three businesses to create a platform that spans 13 countries and 61 locations.”
Michael G. Fisch, President & CEO of American Securities, added, “George Thanopoulos, Tom Amato, and Doug Grimm have each been terrific partners for us both at their respective businesses and MPG as a combined company. American Securities is proud of our association with them and the entire MPG management team.”
Following the IPO, affiliates of American Securities will hold a significant ownership position in MPG and its professionals continue to serve on the MPG’s Board of Directors.