Altra Industrial Motion, Inc.
Fund: Genstar III
IPO: December 20, 2006
Secondary: June 26, 2007
Opportunity
Genstar Capital’s investment in Altra Industrial Motion (“Altra”) resulted from our focus on the Industrial Technology industry. Altra is a leading global designer, producer and marketer of a wide range of mechanical power transmission and motion control products. Genstar created Altra when it acquired Colfax Power Transmission Group in November of 2004 and Kilian Manufacturing Corporation in October 2004, later merging the two companies.
Strategy
Genstar Capital was attracted to Altra’s strong brands, distribution channels and product depth that could be leveraged to increase revenues. Genstar believed that significant opportunities existed to improve the operating profitability of the business. Genstar had access to significant knowledge of Colfax and its markets through Michael Hurt, Genstar SAB member and the former CEO of TB Woods, a leading manufacturer of mechanical power transmission products, and Frank Bauchiero, Genstar SAB member and former CEO of Warner Electric, the largest unit of Colfax. Genstar saw a significant opportunity to create value by driving new product growth, improving cost controls and acquiring an expanded product portfolio through acquisitions.
Result
Genstar aided Altra in the sourcing, execution and integration of three add-on acquisitions, resulting in a strengthened product portfolio, diversified revenue base and expanded geographic reach. By the time of Genstar III’s exit in June 2007, Altra had grown from $303 million in revenue to over $584 million, while pro-forma EBITDA increased from $30 million to $85 million.
In 2006 and 2007, Altra completed its initial public and secondary offering of common stock, in which Genstar III sold its entire stake in the company.