Middle market private equity firm The Sterling Group has completed the sale of its portfolio company, Stackpole International, to funds managed by Crestview Partners.
Sterling had acquired Stackpole through a corporate carve-out from Tomkins in August 2011.
Stackpole was an investment in Sterling's third fund, an USD820 million fund raised in 2010. The sale returns a significant portion of all called capital and fees to Fund III. Terms of the transaction were not disclosed.
Headquartered in Ancaster, Ontario, Stackpole is a manufacturer and supplier of highly engineered oil-pumps and powdered metal components to automotive original equipment manufacturers. EBITDA has increased by more than 80% over the last two years, significantly outpacing domestic automobile production growth of about 25%.
"Sterling's focus on corporate carve-outs and our operationally focused approach to investing in the middle market continue to generate strong returns for our partners, as evidenced by the successful outcome with Stackpole," says Kent Wallace, Partner at The Sterling Group. "We were pleased to partner with an outstanding management team to guide the company through this period of very exciting growth, offering superior products and execution to an expanded list of customers globally."
Peter Ballantyne, CEO of Stackpole, says: "Sterling's deep experience transitioning businesses to stand-alone entities and their hands-on approach to partnership helped create great value at the company. Stackpole is well positioned for continued growth based on the progress we've made together, and we look forward to the next chapter of growth under our new ownership."
During its 31 year history, Sterling has completed 22 corporate carve-outs, relying on its operating expertise and its experience executing complicated transactions to fundamentally improve North American based industrial businesses. The Sterling Group and its partner, Current Capital, were advised on the sale by Barclays and Bracewell & Guiliani.
