Crestview to Exit Stackpole in Deal Worth up to C$867M
August 12, 2015
Crestview Partners has agreed to sell portfolio company Stackpole International, a supplier of engine & transmission pumps and powder metal components for automotive applications, to Johnson Electric Holdings (HKSE: 0179). Established over 109 years ago, Stackpole employs over 2,000 people and operates out of nine manufacturing facilities located in North America, Europe and Asia. Johnson Electric will acquire the company in an all-cash deal that values it at C$800 million ($609 million) on an enterprise value basis and finance the acquisition with a combination of current cash balances and proceeds from existing revolving credit facilities; Stackpole's existing high-yield debt will also be retired. Subject to contingent payments attached to the period elapsed between signing and closing of the deal, Johnson could pay up to C$867 million. The deal is expected to close in 4Q.