Hidden Harbor Capital Partners, a private equity firm specializing in control investments in lower middle-market companies, has acquired the aftermarket division of Cloyes Gear & Products, a subsidiary of American Axle & Manufacturing.
Based in Fort Smith, Arkansas, and founded in 1921, Cloyes is a designer, developer, manufacturer and distributor of timing drive systems and components for replacement applications in the automotive aftermarket and high-performance racing segment.
“Cloyes, in its nearly 100-year operating history, has established itself as the premier brand in timing systems and related components, recognized for its superior quality products, engineering capabilities, broad product portfolio and customer service,” said Andrew Joy, a principal at Hidden Harbor.
“In partnership with Cloyes’ management, we look forward to continuing to provide superior service and products to our existing customers, as well as executing on geographic and product expansion growth opportunities,” added Chris Paldino, a founding partner at Hidden Harbor.
“The Cloyes aftermarket team is very pleased to be partnering with Hidden Harbor,” said Mick Jordan, president of Cloyes. “Working in conjunction with the Hidden Harbor team will allow us to achieve our sales growth initiatives, including an expanded product line and new global distribution. Their operational expertise, standard operating procedures, and process improvement knowledge coupled with Cloyes’ experienced senior management team provide a strong formula for creating future growth.”
Hidden Harbor’s acquisition of Cloyes closed on April 4. LBC Credit Partners provided financing for the transaction. Configure Partners served as financing adviser to Hidden Harbor. Donnelly Penman & Partners served as an adviser to American Axle & Manufacturing Inc. Terms of the transaction were not disclosed.