Private investment firm Shipston Equity Holdings LLC has acquired auto parts maker Compass Automotive Group LLC from Monomoy Capital Partners. Financial terms were not disclosed.
Compass, based in Franklin, Indiana, manufactures aluminum chassis and suspension parts for the automotive sector. The buyer is changing the target’s name to Shipston Aluminum Technologies. Shipston Equity is a diversified investment firm. Compass will complement its portfolio company Busche Enterprise Division, a maker of metal gears and brackets.
Monomoy formed Compass in 2007 when it acquired Alcoa Inc.’s automotive castings business and merged it with Casting Technologies Co. In 2009, Monomoy purchased Citation Corp.’s aluminum die casting and machining operations. The PE firm said it is making 3.4 times gross cash return on the Compass exit.
Rising global car sales have been driving deals among auto part manufacturers. Some recent acquisitions include Aviation Industry Corp. of China buying Henniges Automotive Inc. from Littlejohn & Co.; ITT Corp. purchasing (NYSE: ITT) Wolverine Automotive Holdings Inc.; and Sentinel Capital Partners adding Driven Performance Brands.
BMO Capital Markets advised Compass. Kirkland & Ellis LLP represented Compass and Monomoy.