NEW YORK – U.S. private equity firm American Securities LLC has acquired HHI Group Holdings, a manufacturer of highly engineered, safety-critical forged components for automotive customers, from KPS Capital Partners, a manager of special situation funds. Terms of the deal were not disclosed.

HHI works principally in the light vehicle market and is a leading manufacturer of complex, highly engineered powdered metal powertrain components and wheel bearings. The company was created in September 2005 in a partnership between KPS and CEO George Thanopoulos, through a series of acquisitions that included: Jernberg Forge, Impact Forge, FormTech Industries and Cloyes Gear and Products, among others. In addition, HHI, through its subsidiary, Kyklos Bearing International, acquired Delphi Corp.’s North American wheel bearings business.

According to Michael Psaros, a managing partner of KPS, the creation of HHI was the result of five unique acquisitions and subsequent turnarounds of companies that were formerly operating in bankruptcy or in distress. “Under our ownership, these assets were transformed into a diversified, value-added, highly specialized company in the automotive industry,” he said. “We congratulate and thank George Thanopoulos and his management team for their strategic vision and brilliant tactical execution. We also thank the United Auto Workers (UAW), the United Steelworkers (USW) and Workers United (SEIU) for their critical contributions toward the success of HHI.”

“We are proud of the significant organic growth of the HHI business and are grateful to KPS for providing our team with leadership, expertise, capital and other resources as we built this platform,” said Thanopoulos. “We look forward to partnering with American Securities to continue our commitment to quality, innovation, customer service and manufacturing excellence.”

“HHI is an excellent fit in our portfolio of companies as a leader in its market of highly specialized products,” added Kevin Penn, managing director at American Securities. “We look forward to working with a highly talented management team as we continue to strengthen and grow this business in the automotive-component market.”