AutomotiveIQ - Amherst Partners

November 2012
AutomotiveIQ
Summary of Automotive M&A and Capital Markets Activity
Recent Deal Activity
August 1, 2012 - Los Angeles, California-based private equity firm Marlin Equity Partners, LLC acquired ATC Drivetrain, Inc. from GENCO ATC, North
America’s second largest third-party logistics provider. ATC Drivetrain, founded
in 1938 and based in Oklahoma City, Oklahoma, is a remanufacturer of transmissions, engines, advanced battery packs and related components for light
vehicles and medium- to heavy-duty trucks. Financial terms of the transaction
were not disclosed.
August 13, 2012 - ContiTech AG, a subsidiary of German Continental AG
(DB:CON), acquired the Mobile Climate Systems Division of Cleveland,
Ohio-based Parker-Hannifin (NYSE:PH). The automotive air conditioning
business manufactures highly engineered components for the global light vehicle
automotive industry, including hose and tube assemblies, accumulators and oil
coolant assemblies. Financial terms of the transaction were not disclosed.
August 20, 2012 - Cleveland, Ohio-based SuperTrapp Industries, Inc. acquired Jardine Performance Products, also of Cleveland. Jardine Performance Products manufactures and markets exhausts, highway bars, forward
controls, back rests, racks and accessories for the motorcycle and all-terrain
vehicle industry markets. Financial terms of the transaction were not disclosed.
September 14, 2012 - French Compagnie Plastic Omnium SA (ENXTPA:POM)
acquired the remaining 40% stake not already owned of India-based Plastic
Omnium Varroc Private Limited from M/s Varroc Polymers Pvt Ltd. Plastic
Omnium Varroc manufactures bumpers for General Motors, Mahindra & Mahindra and Volkswagen. Financial terms of the transaction were not disclosed.
September 17, 2012 - Minneapolis, Minnesota-based private equity firm Norwest Equity Partners acquired Quadion Corporation, also of Minnesota.
Quadion engages in the design, development and manufacture of custom molded rubber and plastic components and assemblies serving the automotive and
off-road industries. Financial terms of the transaction were not disclosed.
September 18, 2012 - Belgian WABCO Holdings Inc. (NYSE:WBC), a leader
in technologies and control systems for safety and efficiency applications in
commercial vehicles, acquired Ephicas B.V. of the Netherlands. Ephicas B.V.
designs, produces and commercializes aerodynamic solutions that improve
fuel economy for trailers, trucks and buses. Financial terms of the transaction
were not disclosed.
September 18, 2012 - Pierburg GmbH, a supplier of various automotive components and a subsidiary of German Rheinmetall AG (DB:RHM), acquired
Mechadyne International Limited from a consortium of financial sponsors, including London investment firm Neptune Investment Management.
Mechadyne International Limited, based in the United Kingdom, operates an
automotive technology development center that researches and develops valvetrain systems for internal combustion engines. Financial terms of the transaction were not disclosed.
September 20, 2012 - South Korean Halla Climate Control Corporation
(KOSE:A018880) announced it would acquire the Climate Control Operations of its joint venture partner, Michigan-based Visteon Corp (NYSE:VC).
The transaction will create a new joint venture called Halla-Visteon Climate Group,
in which Visteon will maintain a equity 70% equity stake. The company manufactures automatic and manual front and rear temperature controls for automotive
HVAC applications. Financial terms of the transaction were not disclosed.
September 24, 2012 - Washington, D.C.-based private equity firm The Carlyle
Group LP acquired Tucson, Arizona-based Walbro Engine Management,
LLC from Boca Raton, Florida-based private equity firm Sun Capital Partners,
Inc. Walbro Engine Management manufactures and sells carburetors, ignition sys-
A m her s t P a r t ner s .com
tems, fuel injection and air/fuel management components for engines in the United
States and internationally. Financial terms of the transaction were not disclosed.
September 27, 2012 – Houston, Texas-based private equity firm The Sterling
Group, L.P. acquired Dexter Axle Company from Ohio-based Tomkins Industries, Inc, itself a subsidiary of Dutch conglomerate Pinafore Holdings BV.
Dexter Axle Company, based in Elkhart, Indiana, engages in the design and
production of axles, wheels and tires, suspensions, brakes and other running
gear components for the trailer industry. The enterprise value of $360 million
implies an EBITDA multiple of 8.9x.
October 1, 2012 - Canadian Magna International, Inc. (TSX:MG), a manufacturer of a variety of automotive systems, assemblies, modules and components, announced it would acquire German Ixetic Verwaltungs GmbH from
French private equity firm Motion Equity Partners S.A.S. Ixetic Verwaltungs
manufactures auto parts including vacuum, engine, hydraulic and transmission
pumps. The announced enterprise value of $398 million implies a revenue multiple of 1.0x. The transaction is pending European anti-trust approval.
October 6, 2012 - New York-based private equity firm American Securities
acquired Novi, Michigan-based HHI Group Holdings, LLC from New Yorkbased private equity firm KPS Capital Partners. HHI Group Holdings and its
subsidiaries manufacture a variety of highly-engineered critical safety automotive components for transmission, drivetrain, suspension, steering and engine
applications. The transaction value was $750 million.
October 12, 2012 – German Robert Bosch GmbH agreed to acquire the remaining 45% stake not already owned of Bosch Emission Systems GmbH
& Co. KG from German companies Deutz AG (DB:DEZ) and Eberspächer
Holding GmbH & Co. KG. Bosch Emission Systems develops and markets
hydrocarbon burner systems, urea tanks and urea injection systems for the
automotive sector. Financial terms of the transaction were not disclosed.
October 16, 2012 - Detroit, Michigan-based General Motors Company
(NYSE:GM) acquired an additional 43% stake in India-based General Motors
India Pvt.Ltd. from its Chinese joint venture partner Shanghai Automotive Industry (Group) Corporation. The transaction brought General Motors’ ownership stake in General Motors India to 93%. General Motors India manufactures
and sells cars in India under the Opel and Chevrolet brands. Financial terms of
the transaction were not disclosed.
October 29, 2012 - Long Grove, Illinois-based MAT Holdings, Inc. signed a
definitive agreement to acquire Ride Control LLC of Troy, Michigan, from Los
Angeles, California-based private equity firm OpenGate Capital. The company, a former subsidiary of Meritor (NYSE:MTOR) engages in the design,
manufacture and sale of automotive shock absorbers and struts as well as
offers a range of hydraulic and air adjustable shock absorbers, pre-assembled
struts and specialty products and accessories. Financial terms of the transaction were not disclosed.
October 29, 2012 - French automotive supplier Valeo SA (ENXTPA:FR) and
Michigan-based V. Johnson Enterprises LLC formed a joint venture called
Detroit Thermal Systems LLC. The joint venture subsequently entered into
a definitive agreement to acquire the climate control business of Automotive
Components Holdings LLC, a subsidiary of Dearborn, Michigan-based Ford
Motor Company (NYSE:F). Financial terms of the transaction were not disclosed. The closing of the transaction is contingent upon the approval of state
and local incentives.
Source: Capital IQ and Amherst Partners
AutomotiveIQ
U.S. Public Supplier Trading Multiples
Median(2)
Average
$ 1,196.2
$ 2,688.8
$ 2,034.5
$ 3,602.5
8.6%
9.9%
0.61x
0.92x
.63x
.89x
.38x
.54x
4.85x
5.32x
8.11x
8.55x
Source: Capital IQ (as of September 30, 2012)
(1) TEV (“Total Enterprise Value”) is defined as net debt plus preferred equity, minority interest and market capitalization.
(2) Median and average values exclude all negative and non-meaningful numbers.
Index Value
Amherst Partners’ Automotive Supplier Index
Note: The supplier index used in this newsletter has been compiled by Amherst Capital Partners, LLC solely for illustrative purposes. The Companies chosen for the index are publiclytraded companies that are commonly used for industry composites representing sector stock performance. The index does not include all public companies that could be categorized
within the sector, and was not created as a benchmark, nor should it imply benchmarking or a recommendation for a particular stock and/or sector.
Total Units Sold ( in millions)
U.S. Total Vehicle Sales
Source: IHS
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AutomotiveIQ
EBITDA Margin
US $s (in billions)
Select Global OEM Aggregate Sales and EBITDA Margin
Note: Asian Aggregates include - Toyota Motor Corp., Honda Motor Co., Ltd., Nissan Motor Co. Ltd., Hyundai Motor Co., Suzuki Motor Corp., Mazda Motor Corp., Kia Motors Corp., Mitsubishi Motors Corp., and Daihatsu Motor
Co. Ltd.; Europe Aggregates include - Volkswagen AG, Daimler AG, BMW Group, Fiat S.p.A., PSA Peugeot Citroen, Renault SA, and Audi AG; North American Aggregates include – Ford Motor Co. and General Motors Company.
Excludes Chrysler.
U.S. Supplier Index Enterprise Value as a Multiple of EBITDA
Source: Capital IQ
Global Automotive M&A Activity
Source: Capital IQ
Total Transaction Volume (#)
U.S. Supplier Index Total Debt as a Multiple of EBITDA
Search Criteria: (1) Automobiles and Components (Primary); (2) Mergers or acquisitions for
majority control; (3) Transactions Announced Date (Including Bids and Letters of Intent)
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Source: Capital IQ, OneSource, SEC filings, company information and Amherst research.
AutomotiveIQ
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Automotive Team Contacts
Don Luciani, Partner
Head of Automotive Industry Team
248.633.2139
[email protected]
Chas Chandler, Partner
248.633.2140
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Scott Eisenberg, Partner
248.633.2150
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Sheldon Stone, Partner
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Jonathan Martin, Managing Director
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