Partners Group picks up US components business

The Switzerland-based asset manager is acquiring a controlling stake in the $1.1bn company

Partners Group has agreed to acquire a controlling stake in Dynacast International, a US-headquartered manufacturer of metal components, according to a statement.

The firm did not disclose the financial details of the transaction, but said the business has an overall enterprise value of $1.1 billion, with the deal expected to close in February 2015 subject to regulatory approval.

Partners Group will acquire the stake from exiting financial investors, and is joined in the acquisition by existing shareholder Kenner & Company and the company’s management team, which will both roll over “significant” equity stakes into the new transaction, the firm said.

It will make the investment from several of its investment platforms, including Partners Group Direct Investments 2012, which closed on its €1.5 billion hard-cap in February of this year, Private Equity International reported earlier.

Founded nearly 80 years ago and headquartered in Charlotte, North Carolina, Dynacast uses proprietary precision die-casting and metal injection moulding technologies to produce customised, high-volume components. The company operated 23 manufacturing plants in 16 countries worldwide, serving clients in a range of industries, including automotive, telecommunications, computing, consumer electronics and healthcare.

Dynacast chief executive officer Simon Newman said Partners Group’s investment would give the business the “strategic support and capital backing to enter into the next phase of growth”.

The transaction has fully committed financing from JPMorgan Chase Bank, Barclays and Macquarie Capital, with J.P. Morgan Securities, Barclays, Macquarie Capital, Goodwin Procter and KPMG acting as advisers to Partners Group, the firm said.

In August Partners Group acquired a controlling interest in Shanghai-headquartered manufacturing company Suzhou Savera Shangwu Elevator Riding System, which at the time had an enterprise value of $450 million. The firm is also currently in market with its third emerging markets-focused private equity vehicle, PEI reported in June.