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Wynnchurch Capital invests in Centrum Equities

Wynnchurch Capital, a Chicago-based private equity firm, has invested in climate control product provider Centrum Equities.

Wynnchurch Capital, a Chicago-based private equity firm, has invested in climate control product provider Centrum Equities.

Based in Sparta, Tennessee, Centrum is a holding company for select aftermarket assets of Visteon previously acquired from Visteon in 2008.

Senior debt financing for the transaction was provided by Centrum’s incumbent lender, the Private Bank, which expanded its credit facility and, together with the Wynnchurch investment and a co-investment by certain current shareholders and management, resulted in a successful recapitalization of the business.

Terms of the transaction were not disclosed.

Centrum is a designer, manufacturer and distributor of aftermarket climate control products such as radiators, condensers and air conditioning products, remanufactured starters and alternators, hydraulic steering systems, rack and pinion systems and power steering pumps.

Roger Brown, the chief executive of Centrum, implemented a turnaround at Centrum after its carve-out from Visteon through various cost savings initiatives, facility consolidation efforts and legacy contract renegotiations.

Terry Theodore, partner for Wynnchurch Capital, says: ‘We are thrilled to be partnering with Roger Brown and Centrum. The team has built a very attractive aftermarket business which is well positioned for growth and profitability. This transaction provides us with an opportunity to invest in a market leader in an industry with significant growth opportunities.’

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