Genstar Capital Realizes Superior Gain from Altra Holdings Secondary Offering
6/26/2007
Genstar Receives $110 Million From Secondary Offering; Total Return Of $185 Million From Original $26 Million Investment In Less Than Three Years
Contact: Chris Tofalli
914-834-4334
ctofalli@gencap.com
SAN FRANCISCO, June 26, 2007—Genstar Capital, LLC, a middle-market private equity firm that focuses on investments in selected segments of the life science and healthcare services, industrial technology, business services and software sectors, announced today that it has sold 7,058,700 shares of its portfolio company Altra Holdings, Inc. (NASDAQ: AIMC) as part of the company’s successful completion of its secondary offering of 12,650,000 common shares at a public offering price of $16.40 per share.
The total proceeds realized to date by Genstar Fund III from its investment in Altra Holdings exceeds $185 million. Genstar originally invested approximately $26 million in Altra Holdings in 2004. The secondary was completed within six months after Altra Holdings completed its initial public offering of 10,000,000 shares offered at $13.50 per share in December 2006. Also included in the secondary offering was the sale of 3,178,494 shares by Altra Holdings and 9,471,506 shares sold by Genstar and other selling stockholders.
Jean-Pierre L. Conte, Chairman and Managing Director of Genstar, said, “Our investment in Altra Holdings is consistent with Genstar’s strategy of acquiring strong businesses that have superior management teams and working with our operating partners to create thriving businesses. We have developed a strategy for Altra Holdings’ long term growth and we believe that with its leading market positions, great industrial brand and strong management team, the company will continue to prosper. We are proud to have worked with such a great management team and wish them well on their journey ahead.”
Merrill Lynch & Co. acted as sole bookrunning manager and Robert W. Baird & Co., Jefferies & Company and KeyBanc Capital Markets acted as co-managers for the offering.
Genstar created Altra Holdings, Inc. in 2004 when it acquired Colfax Power Transmission Group and combined it with Kilian Manufacturing Corporation. Earlier this year, Altra Holdings completed the acquisition of TB Wood’s, an established designer, manufacturer and marketer of electronic and mechanical industrial power transmission products, with revenues of nearly $120 million. Other add-on acquisitions included The Hay Hall Group and Bear Linear.
Earlier this month, Genstar completed fund raising for its most recent fund, Genstar Capital Partners V, L.P., with total limited partner capital commitments of $1.55 billion. Genstar’s recent transactions include its acquisition of ConvergeOne, one of the largest independent providers of business communications solutions in the U.S.
This press release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sales of the shares in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.
About Genstar Capital, LLC
Based in San Francisco, Genstar Capital, LLC (www.gencap.com) is a private equity investment firm that makes leveraged investments in quality middle-market companies. Genstar Capital works in partnership with management to transform its portfolio companies into industry-leading businesses. With more than $3 billion of committed capital under management and significant experience investing in businesses, Genstar focuses on selected segments of life science and healthcare services, industrial technology, business services and software services.
About Altra Holdings
Altra Holdings, Inc. is a Quincy, MA-based provider of mechanical power transmission and motion control products. Altra Holdings’ product portfolio includes industrial clutches and brakes, enclosed gear drives, open gearing, couplings, engineered bearing assemblies, linear components and other related products that are used in a wide variety of high-volume manufacturing processes, where reliability and accuracy are critical in both avoiding costly down time and enhancing the overall efficiency of manufacturing operations.