CITIC, Crestview to sell Stackpole for $659m
CITIC Capital Partners and Crestview Partners have agreed to sell Canada-based auto parts maker Stackpole to Johnson Electric Holdings for C$867 million ($659 million).
In a regulatory filing, Johnson Electric said that it sees the acquisition as a chance to improve its own product offerings by integrating Stackpole's technology into its designs. Buying Stackpole will also help Johnson Electric, which is based in Hong Kong, to gain more exposure to the North American and European markets.
Johnson Electric will pay cash for the company, with part of the proceeds going to retire Stackpole's high-yield debt. The deal will close in the fourth quarter of 2015, subject to regulatory approvals. After completion, Stackpole will operate as a wholly-owned subsidiary of Johnson Electric, with its current management team still in place.
Johnson Electric produces electric motors, motion subsystems and other electro-mechanical components for customers in a range of industries, including the automotive sector. It maintains 9 research and design centers across Asia, Europe and the US, and employs about 35,000 people worldwide.
CITIC Capital and Crestview bought Stackpole in 2013 from its previous owners, Sterling Group and Current Capital, for $512 million, including debt. CITIC targets control deals for companies in the US and Japan that have a China angle, and aims to help them fully realize their potential in the China market.
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