KPS Capital Partners LP has created a new company, Autokiniton Global Group LP (AGG), to pursue investments in the global automotive supply industry. George Thanopoulos, a widely respected industry executive, will serve as AGG’s CEO.
Thanopoulos served as the CEO of Metaldyne Performance Group Inc. (MPG), a metal former focused on powertrain applications with more than $3 billion in annual revenue, from August 2014 to April 2017. During his tenure as CEO MPG completed an initial public offering in 2014 and subsequent sale to American Axle & Manufacturing Holdings Inc. in 2017, where Thanopoulos has served as a director. He formerly served as a director of Global Brass and Copper Holdings Inc., JL French Automotive Castings Inc. and Chassis Brakes International Group. He also served as CEO of HHI Group Holdings LLC from 2005-’14, a company he co-founded in partnership with KPS. Thanopoulos began his career at MascoTech Inc. in 1985 serving in various engineering, plant management and executive management roles.
KPS also announced today that AGG has entered into definitive agreements to acquire L&W Inc. Following completion of the transaction, Thanopoulos will become L&W’s executive chairman. Scott Jones will continue to serve as president and lead the company’s management team.
L&W is a Tier 1 supplier in the automotive industry, specializing in hot and cold metal stampings and welded assemblies. The company is a leader in metal-formed components and complex assemblies, with a product portfolio that is well-positioned for key automotive trends, including electrification, lightweighting and emission reduction regulations. L&W’s unique vertical integration from design through delivery results in best-in-class quality, service and delivery to customers, according to KPS. The company has received more than 100 awards from customers throughout its history. Headquartered in New Boston, Michigan, L&W operates 23 sales, engineering and production facilities located throughout the United States with more than 3,200 employees.
KPS and Thanopoulos have a history of successfully working together to create, operate and grow automotive supply businesses. KPS and Thanopoulos partnered in 2005 to form HHI Group Holdings LLC. HHI, through a series of acquisitions and other growth initiatives, became the largest North American manufacturer of highly engineered, safety-critical forged components for automotive customers and a leading manufacturer of complex, highly engineered powdered metal powertrain components and wheel bearings. HHI was sold in 2012.
Michael Psaros, co-founder and co-managing partner of KPS, said, “KPS is thrilled to reestablish its partnership with George Thanopoulos with the objective of replicating our shared success on a much greater scale. Our previous initiative with George, HHI, consolidated and transformed the fragmented automotive forging industry in North America, creating a company that provided its customers with stable industry leadership and world-class products, quality, technology and service. KPS intends to invest a significant amount of capital in AGG to expand the business through acquisitions in the automotive parts industry globally, leveraging our industry knowledge, manufacturing expertise and relationships on a global basis.”
Thanopoulos added, “We are very excited to acquire L&W and launch AGG. L&W possesses world-class assets, industry-leading quality and service and a commitment to investing in state-of-the-art technology and process development. L&W’s greatest asset is its customer relationships established over decades. KPS and I look forward to working with L&W’s President Scott Jones and the company’s management team to build on the company’s unique strengths with a new strategic vision, financial resources and exceptional credentials in the global automotive industry.”
Completion of the transaction is expected in spring 2018 and is subject to customary closing conditions and approvals. Financial terms of the transaction were not disclosed.
