Daily News: March 6, 2012

Monomoy Acquires Raybestos Powertrain from Sun Capital Affiliate

Monomoy Capital Partners, L.P., a New York private equity fund focused on value investment and business improvement, announced that it has acquired the stock of Raybestos PowerTrain, LLC from an affiliate of Sun Capital Partners. Monomoy has combined Raybestos and Steel Parts Manufacturing, Inc. into a global growing transmission component platform that Monomoy formed in April 2011. Terms of the transaction were not disclosed.

The combined business will continue to go to market under the Raybestos, Allomatic and Steel Parts brand names.

Raybestos combined with Steel Parts will create a leading supplier to automotive and heavy-duty vehicle customers in both the automotive aftermarket and the original equipment manufacturer (OEM) channels. “The Raybestos acquisition is an important step in building a niche transmission component platform,” said Monomoy vice president Nate Bard. “Raybestos’ highly-engineered product offering and experienced management team fits perfectly within the Monomoy portfolio and will play a pivotal role in diversifying the platform and providing its customers with more value-added products.”

Headquartered in Crawfordsville, IN, Raybestos is a manufacturer of transmission and wet-wheel brake friction products, supplying both OEMs and automotive aftermarket customers. In the automotive aftermarket, it provides the next generation of OE-quality products for transmissions, including bands, clutch plates, torque converter wafers and Clutch-Pack modules, covering 99% of automatic transmissions on the road.

Complementing Raybestos’ friction clutch plates, Steel Parts manufactures the mating non-friction clutch plates for OEM transmissions and provides high-volume stamping and value-added processing capabilities to the platform.

Raybestos operates three plants located in Indiana, including two in Sullivan and one in Crawfordsville. In 2011, Raybestos generated sales of nearly $100 million and employs over 535 team members throughout the United States and abroad.

“This transaction represents an exciting next step for Raybestos,” said Daniel Gaston, Raybestos’ CEO. “Along with Monomoy’s operational expertise and strategic guidance, the operational and product synergy between Steel Parts and Raybestos provides us with the necessary resources and capital to further expand and improve our business both domestically and abroad. We look forward to the opportunities ahead for the combined company.”

Crowe Horwath LLP provided Monomoy with accounting diligence. Lazard Middle Market acted as financial advisor to Raybestos in connection with the sale.