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Ewing to Buy Key Auto Stakes from Carlyle Group

As part of the unwinding of their relationship, Ewing Management Group has agreed to buy Carlyle Group’s stake in Key Automotive Group, as well as a stake held by Lightyear Capital. Key Automotive was formed by putting Key Plastics LLC, acquired for about $175 million in 2001, under the same roof with Breed Technologies, Inc., which Ewing had bought out of bankruptcy in 2001 for a reported $315 million. Breed was later renamed Key Safety Systems, Inc. and moved its headquarters to Michigan, where Key Plastics is based.

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From TheDeal.com

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As part of the unwinding of their relationship, Ewing Management Group has agreed to buy Carlyle Group’s stake in Key Automotive Group, as well as a stake held by Lightyear Capital.

Financial terms were not disclosed, but Ewing will provide equity to fund the transaction.

Ewing is the private equity firm named after Dallas financier Edward Ewing, who affiliated his special situations group with Carlyle in 2002 to form Carlyle Management Group LP. Ewing split with Carlyle last month, forcing the dissolution of the $590 million fund Carlyle Management Group’s raised in 2002.

Key Automotive was formed by putting Key Plastics LLC, acquired for about $175 million in 2001, under the same roof with Breed Technologies, Inc., which Ewing had bought out of bankruptcy in 2001 for a reported $315 million. Breed was later renamed Key Safety Systems, Inc. and moved its headquarters to Michigan, where Key Plastics is based.

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Key Plastics makes auto interior parts, while Key Safety makes seat belts, air bags and steering wheels. The group has annual sales of $1.7 billion. Ewing will continue as chairman and CEO of both Key operating companies.

The transaction is scheduled to close in September 2004.

Copyright 2004 The Deal, LLC. All Rights Reserved.

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