Talk about a quick flip.
Castle Harlan, a New York-based firm, bought Canadian mining product manufacturer Norcast Wear Solutions for $190 million on Wednesday and then sold it for $218 million the very next day.
Castle Harlan, which invested in Norcast alongside its Australian affiliate CHAMP – Castle Harlan Australian Mezzanine Partners – sold the company to Australian industrial product manufacturer Bradken. The firm has partnered with Bradken on several transactions in the past. In 2008, Castle Harlan sold AmeriCast Technologies to Bradken for $288 million, more than double its purchase price, after 21 months of ownership.
The firm invested in Norcast from its fifth fund that closed last year on $800 million. The acquisition and immediate exit mark the first announced transactions for Castle Harlan since the sale of lawn and garden tool maker Ames True Temper last July for $542 million.
“As private equity lead investors, we enabled [corporate partners] to participate in investments that for many reasons they couldn't or didn't want to lead at the time,” Castle Harlan co-president Howard Morgan said in a statement. “In several instances the corporate partner decided to own the business outright, and we at Castle Harlan saw immediate value-added from the partner and the possibility of a long term strategic fit.”
Last August, Castle Harlan’s president Justin Wender resigned abruptly for undisclosed reasons. The firm appointed senior managing directors Howard Morgan and Bill Pruellage as co-presidents to take his place.
Since its founding in 1987, Castle Harlan has participated in eight private equity funds, five domestically and three in Australia. The funds total approximately $6 billion in capital commitments, according to the company’s website.