CITIC Capital, Crestview buy machinery supplier Stackpole
CITIC Capital Partners has teamed up with New York-based Crestview Partners to buy Stackpole International, a North American machinery supplier, from Sterling Group and Current Capital. The transaction value was not disclosed but it is reportedly $512 million including debt.
Based in Ontario, Canada, Stackpole provides systems and components to auto equipment manufacturers and powertrain specialists. It has production facilities in North America, Europe and Asia. Peter Ballantyne will continue as president and CEO of the company, as well as taking a seat on the board.
He will be joined on the board by representatives from Crestview and CITIC Capital as well as Sir Nick Scheele, former COO of Ford Motor Company, who will serve as chairman, and Jason Luo, CEO of automotive supplier and Crestview portfolio company Key Safety Systems.
"We believe Crestview's experience investing in and growing automotive companies, CITIC's experience helping businesses like ours grow in China, and Sir Nick Scheele and Jason Luo's breadth of global experience in the automotive industry, will add significant insight to the company in supporting our customers and executing on Stackpole's future growth plans," said Ballantyne, in a statement.
Part of CITIC Capital's strategy is investing in global companies and helping them fully realize the potential of their China business. In 2005, the PE firm acquired Lincoln Industrial, a St Louis-based producer of lubricants used in machinery generating $1 million a year from China. Five years later, the company was racking up China sales of $1 million per month and CITIC Capital sold the business to Sweden's SKF for $1 billion, realizing a 10x money multiple.
Sterling and Current acquired Stackpole in 2011 as a carve-out from Gates Corporation. The sale came after Gates' parent, UK manufacturer Tomkins, was bought by Onex Corp. and Canada Pension Plan Investment Board.
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