Bain, Unitas consider $400m Prestolite SBO

Michigan-based Prestolite, a manufacturer of alternators and starter motors for the vehicle, military and industrial markets, generates around 70% of its EBITDA from its China subsidiary Prestolite Electric Beijing Ltd (PEBL), a joint venture which was formed in 2001.

Two sources told Reuters that First Atlantic, which bought Prestolite in 2004, hired Goldman Sachs to run the auction. The investment bank is in talks with a select group of potential suitors, although a precise deadline has not yet been set for final bids.

Unitas' interest in Prestolite is perhaps unsurprising given its EUR525 million ($730 million) acquisition of Dutch cylinder maker Hyva from 3i last year. A number of synergies exist between the two companies, such as their focus on heavy engineering sectors, global production and distribution and their strong growth within Asia. Hyva was a landmark PE deal for the region in that it was the first one to be backed by a high-yield bond.

PEBL has generated substantial PE interest in recent years. In addition to First Atlantic's investment in its parent company, PECH Holdings, the China-based subsidiary's holding vehicle, received a $33.5 million senior secured convertible loan from Darby Overseas Investments, the private equity and mezzanine arm of Franklin Templeton Investments, in January 2010. The investment was made from Darby Asia Mezzanine Fund II, a $254 million fund closed in October 2007.

In 2009, PEBL reported gross sales of more than RMB740 million ($108 million).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Buyouts
• Exits
• Industrials
• Greater China
• China
• Bain Capital Asia
• Unitas Capital
• automobiles
• Exit
• Secondaries
• buyout