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The Sterling Group acquires Stackpole International From Gates Canada

The Sterling Group (Sterling), a Houston based private equity investment firm, has, through its affiliated investment fund, Sterling Group Partners III, completed the acquisition of the Stackpole International (Stackpole) business from Gates Canada (a subsidiary of Pinafore Holdings PV).  The acquisition is Sterling’s second investment in its third fund, USD820 million fund raised in 2010, and is the twentieth corporate carve-out in its twenty-nine year history.  

The acquisition was financed with equity from Sterling Group Partners III, LP, Current Capital LLC and several other co-investors.  Senior debt financing was provided by RBC Capital Markets, BNP Paribas and UBS and mezzanine debt was provided by Hancock Capital Management, Fifth Street and Global Leveraged Capital.

Stackpole was founded in 1952 and was acquired by Gates in 2003. Headquartered in Ancaster, Ontario, Stackpole is a manufacturer and sole source supplier of highly-engineered oil pumps and powdered metal components to automotive original equipment manufacturers. Stackpole is a market leader in both oil pumps and powdered metals and has established a long-standing track record with fifty-five years of manufacturing expertise. Stackpole’s products are specified into powertrain (engine and transmission) platforms that have an average lifecycle of ten to fifteen years. These platforms underpin approximately 400+ vehicle nameplates. Stackpole currently has twelve manufacturing facilities and technical centres in North America, Europe, China and Korea.

"The entire management team is thrilled to partner with Sterling to return Stackpole to a standalone business. Over the next few years, our business will have the opportunity to expand in North America and significantly increase its presence in Europe and Asia. We feel that Sterling’s historical experience in effectively guiding the growth of manufacturing businesses such as ours, as well as their access to capital to support our growth needs, will be tremendous assets for our company," says Peter Ballantyne, President and CEO of Stackpole.
 
Kent Wallace, a Partner of Sterling, adds: "We are very excited to have the opportunity to work with Pete, the rest of the Stackpole management team and the employees to continue to expand the company’s global manufacturing platform. We are confident the company will continue to build on its outstanding reputation for consistently manufacturing and delivering critical components."  

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