Gamut Capital Management and BCI to Invest in PS Logistics

NEW YORK - June 25, 2021 - Gamut Capital Management, L.P. (“Gamut”), a leading New York-based middle market private equity firm, in partnership with British Columbia Investment Management Corporation (“BCI”), one of Canada’s largest institutional investors, announced they have signed a definitive agreement to invest in PS Logistics.

As the largest and fastest-growing flatbed transportation and full-service logistics provider in the United States, PS Logistics employs a “Driver-First” culture to transport general flatbed commodities with a specialization in irregular route service in the continental United States.

“The combination of our exceptional team, with the resources we will gain through our relationship with Gamut and BCI, will enable PS Logistics to accelerate our growth while continuing to provide best-in-class services to our customers,” said Scott Smith, CEO of PS Logistics.

Stan Parker, Founding Partner of Gamut, said, “We are excited to partner with Scott and his seasoned management team to enhance their market leading platform and accelerate their growth trajectory. As the leading player in the large and fragmented flatbed trucking market, PS Logistics’ dedicated drivers, expansive freight network and young fleet are poised to continue delivering great value to both new and longstanding customers in search of comprehensive cross-country coverage and services.”

“As a long-term investor, we seek market-leading companies with a demonstrated track record of creating shareholder value, like PS Logistics. We look forward to working with the founder-led management team and Gamut to support the company’s future growth”, said Aaron Papps, Senior Portfolio Manager at BCI. “The continued growth and success of PS Logistics will provide compelling risk-adjusted returns for our pension plan and insurance fund clients.”

Financial terms of the transaction are not disclosed. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of this year.

RBC Capital Markets, Credit Suisse and Deutsche Bank Securities Inc. served as financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Gamut and BCI, and Weil, Gotshal & Manges LLP served as separate legal counsel to BCI. UBS Investment Bank served as exclusive financial advisor and Kirkland & Ellis LLP served as legal counsel to PS Logistics. RBC Capital Markets, Credit Suisse, Deutsche Bank Securities Inc. and Wells Fargo Bank, N.A. are providing financing commitments for the transaction, subject to customary terms and conditions.

About PS Logistics

Founded in 2004 and headquartered in Birmingham, AL, PS Logistics is one of the largest and fastest growing flatbed transportation and logistics providers in the United States. PS Logistics provides full-service transportation services, including asset-based transportation, non-asset-based transportation, brokerage, third-party logistics managed transportation, warehousing, and supply chain services. This hybrid model delivers optimal flexibility to address customer’s flatbed transportation needs across various industries throughout the United States. For more information, visit: www.pslogistics.com.

About Gamut Capital Management

Gamut Capital Management is a New York-based private investment firm managing $1.2 billion in assets focused on the middle market. Founded in 2015, Gamut’s senior deal professionals have executed investments in over 50 companies in North America and Europe. To learn more, please visit www.gamutcapital.com.

About BCI

With C$171.3 billion of assets under management as of March 31, 2020, British Columbia Investment Management Corporation (BCI) is one of Canada’s largest institutional investors. Based in Victoria, British Columbia, BCI is a long-term investor that invests across a range of asset classes: fixed income; public equities; private equity; infrastructure; renewable resources; real estate; and commercial mortgages. BCI’s clients include public sector pension plans, insurance, and special purpose funds. BCI’s private equity program, with C$17.9 billion of assets under management, has a well-diversified portfolio comprised of direct and fund investments. The team brings industry expertise with more than 30 investment professionals investing across financial and business services, healthcare, industrials, consumer, and TMT sectors. For more information about BCI, please visit www.bci.ca.

Grede Acquires Certain Assets from RMG Waukesha

SOUTHFIELD, Mich. – June 3, 2020 – Grede, the leading developer, manufacturer, assembler and supplier of ductile, gray and specialty iron castings and machined components for automotive, commercial vehicle and industrial markets, today announced it has purchased certain assets of Renaissance Manufacturing Group (RMG) Waukesha, LLC.

The acquisition expands strategic growth for Grede in the commercial vehicle and industrial markets. Grede is an independent company acquired in late 2019 by Gamut Capital Management from American Axle & Manufacturing Holdings, Inc. (AAM). The terms of the RMG transaction were not disclosed.

“Grede is well capitalized and poised for growth within a fragmented and distressed foundry supply base, and this strategic acquisition strengthens our position in the castings industry,” said Grede CEO Cary Wood. “This investment further brings us new customers and aligns with the markets we are serving while expanding the products and materials we produce.”

Wood added that the acquisition helps Grede move closer toward its goal of balancing its portfolio equally among the automotive, commercial vehicle and industrial markets.

RMG acquired the Waukesha foundry from Navistar International Corp. in May 2015. Primarily a ductile iron operation since the early 1980s, the facility also produces austempered ductile iron, high-temperature and abrasion-resistant ferrous alloys and compacted graphite iron. RMG Waukesha, which generated approximately $25 million in revenue in 2019, produces components for light and heavy truck, combustion engine, railroad, construction, agricultural and pump/compressor manufacturing. RMG will continue to operate its other two locations in Grafton, Wisc., and Anniston, Ala.

Grede has a 100-year history as an industry leader in iron casting and is one of few foundry groups in North America with in-house machining operations and is a full-service supplier of fully machined castings.

“Grede is uniquely equipped to meet demand for high-quality casting products in a cost-conscious market,” Wood said. “We also have enough capacity to support added business that will come from on-shoring initiatives to reduce supply-chain risk and we’re positioned to help our customers manage other risk factors and provide long-term solutions.”

“The iron castings market is very fragmented and further consolidation is likely to occur due to stress in the broader market,” Wood added. “Due to the strength of its balance sheet, Grede expects to continue to grow its portfolio of assets to better serve its customer base and is engaged in strategic dialogue with multiple parties.”

Based in Southfield, Mich., the company has approximately 3,800 employees across 10 facilities in Alabama, Indiana, Michigan, Minnesota, North Carolina and Wisconsin. Grede intends to reallocate work currently done at RMG’s Waukesha facility among its existing plants in Browntown, Liberty and Reedsburg, Wisc., and Biscoe, N.C.

“We are confident that through our close partnership with Grede and its agile and committed management team, the company is well positioned to execute on more transactions like RMG,” said Jordan Zaken, founding partner of Gamut. “With a strong capital structure, Grede is able to reinvest in its facilities and look for strategic acquisitions to strengthen its market position and continue to meet its customers’ needs.”

Gamut is a New York-based private investment firm managing over $1 billion in assets. Through Gamut’s flexible capital base and partnership approach and Grede’s diverse and flexible molding capacity, the company expects to continue to grow in all segments, including automotive, commercial vehicle, agriculture, construction, hydraulic, material handling, and other industrial businesses.

About Grede

Grede, an independent company owned by Gamut Capital Management, designs, engineers, validates and manufactures high-quality ductile, gray and specialty iron castings for automotive, commercial and industrial markets. As a premier Tier One supplier in diverse markets, Grede has broad capabilities across multiple product lines that can deliver efficient, powerful and innovative solutions for its customers.

Headquartered in Southfield, Mich. (USA), Grede offers complete precision machining and finishing services, as well as the assembly of diverse components into complete systems. It has 10 facilities in the U.S. with approximately 3,800 employees.

The Grede legacy dates to 1920 when William J. Grede founded Grede Foundries, Inc., with an iron foundry in Wauwatosa, Wis.  The company has grown through a series of acquisitions. In February 2010, Grede combined assets with Citation Corporation to create the most diversified foundry company in North America.  In August 2014, Metaldyne Performance Group (MPG) was formed by the joining of Metaldyne, HHI and Grede, and in 2017, MPG was purchased by American Axle & Manufacturing Holdings, Inc. (“AAM”). In December 2019, Gamut acquired Grede from AAM, and, under the leadership of Grede’s new management team, Grede has been re-established as a leading independent supplier of iron castings in North America with a core focus on growth and supplying high quality iron to castings to its diverse base of industry leading customers across multiple end-markets. To learn more, please visit www.grede.com.

About Gamut Capital Management

Gamut Capital Management is a New York-based private investment firm managing $1.2 billion in assets focused on the middle markets. Gamut was founded in 2015 by Stan Parker and Jordan Zaken who have more than 40 years of combined private equity investing experience. Gamut's senior deal professionals have executed investments in over 30 companies in North America and Europe. To learn more, please visit www.gamutcapital.com.

AAM Announces Sale Of U.S. Iron Casting Operations To Funds Managed By Gamut Capital Management

DETROIT - Sept. 18, 2019 - American Axle & Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) announced today that it has entered into a definitive agreement to sell its U.S. iron casting operations ("Grede") to funds managed by Gamut Capital Management ("Gamut") for an aggregate purchase price of $245 million, subject to certain customary adjustments.

Across 10 manufacturing facilities, Grede develops, manufactures, assembles and supplies ductile, gray, and specialty iron castings and machined components for automotive, commercial vehicle and industrial markets.  For the full year 2018, Grede generated $781 million in sales ($741 million excluding intercompany transactions).

"The sale of Grede will enable us to streamline our business, accelerate our debt reduction initiatives and enhance our margin profile," said AAM's Chairman and Chief Executive Officer, David C. Dauch.  "We will continue to optimize and invest in our highly-engineered product portfolio, focus on profitable growth opportunities including electrification, and further strengthen AAM's value proposition to all key stakeholders."

Jordan Zaken, Founding Partner of Gamut, said, "Grede is a market-leading supplier of high-performance, mission-critical castings with national scale, a blue-chip customer base and significant opportunities for growth. We are excited to partner with Grede and its dedicated employee base in its next chapter as an independent company focused on operational excellence and best-in-class delivery for its customers."

AAM will retain its El Carmen, Mexico iron casting operations.  The El Carmen Manufacturing Facility will continue to provide significant vertical integration benefits to AAM, while also continuing to serve external customers in Mexico and other global markets.

The $245 million sale price will consist of $185 million in cash and a $60 million deferred payment obligation, subject to certain customary adjustments.  Net cash proceeds will primarily be used to repay outstanding indebtedness.  The transaction is expected to close in the fourth quarter of 2019, subject to customary closing conditions, including the receipt of regulatory approvals.

For more information, visit the investor page at www.aam.com for a supplemental investor presentation.

Forward-Looking Statements

This report may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements with respect to the transaction and the anticipated consequences and benefits of the transaction and other information relating to matters that are not historical facts.  These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements.  These risks and uncertainties include the receipt and timing of necessary regulatory approvals and the other factors detailed from time to time in the reports we file with the SEC, including those described under "Risk Factors" in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.  These forward-looking statements speak only as of the date of this communication.  We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

About AAM

AAM (NYSE:AXL) delivers POWER that moves the world. As a leading global tier 1 automotive supplier, AAM designs, engineers and manufactures driveline, metal forming and casting technologies that are making the next generation of vehicles smarter, lighter, safer and more efficient. Headquartered in Detroit, AAM has over 25,000 associates operating at nearly 90 facilities in 17 countries to support our customers on global and regional platforms with a focus on quality, operational excellence and technology leadership.  To learn more, visit aam.com.

About Gamut Capital Management

Gamut Capital Management is a New York-based private investment firm managing $1.2 billion in assets focused on the middle market. Gamut was founded in 2015 by Stan Parker and Jordan Zaken who have over 35 years of combined private equity investing experience. Gamut's senior deal professionals have executed investments in over 30 companies in North America and Europe. To learn more, please visit www.gamutcapital.com.

JPW Industries Acquires Baileigh Industrial

LA VERGNE, TN — May 9, 2019 – JPW Industries, Inc. (“JPW”), a leading global designer, manufacturer and distributor of branded metalworking and woodworking equipment and specialty shop tools sold under the JET®, Powermatic®, Wilton®, Edwards® and Promac® brand names, today announced it has acquired Baileigh Industrial Holdings, LLC (“Baileigh”). JPW is a Gamut Capital Management (“Gamut”) portfolio company. Terms of the transaction were not disclosed.

Founded in 1999, Baileigh is a leading marketer, manufacturer and distributor of over 500 metalworking and woodworking products sold under the Baileigh® brand across the U.S. and Europe. Through its wholly-owned subsidiary, RMD, Baileigh designs and manufactures high-quality, “made-in-the-USA” Baileigh-branded metalworking machinery. Baileigh’s operations in Manitowoc, WI, and Two Rivers, WI, including warehouse, customer service, technical service and manufacturing will remain in their current locations.

Scott Leichtling, CEO of JPW, stated: “We are excited to welcome Baileigh into the JPW family of brands and provide our customers with the most comprehensive portfolio of high-quality metalworking and woodworking products globally. Baileigh is exactly the type of brand we look for: a world-class company known for its commitment to innovation, culture of excellence and deeply loyal and diverse array of end users. We will continue to support the growth of the Baileigh brand while leveraging JPW’s supply chain and customer service capabilities to improve the overall value proposition to our collective customer base.”

Stephan Nordstrom, Baileigh’s Founder, will join JPW’s Board of Directors to help ensure a smooth transition. “I am exceptionally proud of Baileigh’s strong global presence and the dedicated, hardworking associates who helped build this company from scratch,” said Nordstrom. “As part of JPW, we will be well-positioned to enter our next phase of growth, expand our services and product offerings and reach new customers.”

Stan Parker, Founding Partner of Gamut, stated: “Over the past 20 years, Baileigh has built a reputation known for its outstanding products, customer-first approach and stellar track record of growth. This acquisition enables JPW to broaden its branded offerings and bolster its market-leading position in metalworking and woodworking machinery, tools and equipment.”

About JPW Industries, Inc.

JPW, based outside Nashville, TN and founded in 1958, is a leading designer, manufacturer and value-added distributor of market-leading, branded machinery, specialty shop tools and equipment for rugged applications across multiple end markets. The Company is highly diversified across customers, selling to the industrial, consumer and construction end markets. JPW owns six brands, including JET, Baileigh, Wilton, Powermatic, Promac and Edwards. JPW’s brands have over 400 years of collective heritage, building brand equity with customers and end users through superior product performance. Visit JPW Industries at www.jpwindustries.com, JET Tools at www.jettools.com, Baileigh at www.baileigh.com, Powermatic at www.powermatic.com, Wilton at www.wiltontools.com, Edwards at www.edwardsironworkers.com and Promac at www.promac.ch.

About Gamut Capital Management

Gamut Capital Management is a New York-based private investment firm managing $1.2 billion in assets focused on the middle market. Gamut was founded in 2015 by Stan Parker and Jordan Zaken who have over 35 years of combined private equity investing experience. Gamut’s senior deal professionals have executed investments in over 30 companies in North America and Europe. To learn more, please visit www.gamutcapital.com.

IAC Group Receives Strategic Investment From Gamut Capital Management That Significantly Strengthens Capital Structure

Recapitalization Will Put Company on Solid Financial Footing for Long Term

LUXEMBOURG – April 6, 2018 – International Automotive Components Group S.A. (“IAC”), a global automotive and mobility leader in lightweight and new-material interior solutions, today announced that it has secured new financing commitments that significantly strengthen its balance sheet and enhance its financial flexibility. 

As part of the recapitalization, IAC will issue $215 million of Senior Secured Notes due April 2023 to funds managed by Gamut Capital Management, L.P. (“Gamut”), a New York-based middle market private equity firm.  The proceeds, along with cash on hand, will be used to refinance IAC’s $300 million 9.125% Senior Secured Notes due June 1, 2018.  Gamut will also acquire a minority equity interest in IAC and nominate representatives to the Board.  WL Ross and Co. LLC (“WL Ross”), a division of Invesco Ltd., and Franklin Mutual Advisers LLC, will remain the Company’s majority shareholders.

Stephen Toy, Senior Managing Director and Co-Head of WL Ross, said, “This is an exciting day for IAC, its partners and employees.  This transaction signals strength and confidence in IAC’s business plan and positions the Company for sustainable, long-term success.”

Stan Parker, Founding Partner of Gamut, added, “IAC is a market leading business with substantial scale, a blue-chip customer base and numerous growth opportunities.  We are excited to be supporting IAC and its management team, as well as partnering with WL Ross and Franklin Mutual Advisers, as they continue to make progress in driving transformational improvements across the business.”

The transaction is subject to customary closing conditions and is expected to close prior to the end of April.

Perella Weinberg Partners, LP and Wells Fargo Securities, LLC, are serving as financial advisors to IAC and Jones Day is serving as its legal counsel. Jefferies Group LLC is serving as financial advisor to Gamut and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as its legal counsel.

About IAC Group

Headquartered in Luxembourg, International Automotive Components (IAC) is a leading global supplier of automotive components and systems, including instrument panels, console systems, door panels, headliners and overhead systems to automakers around the world. The company’s 2017 sales were an estimated $4.4 billion. IAC Group operates more than 50 manufacturing facilities in 16 countries. The company has more than 60 total locations in 19 countries, including 19 design, technical and commercial centers, and employs more than 22,000 people globally. For more information, visit www.iacgroup.com.

About Gamut Capital Management

Gamut Capital Management is a New York-based private investment firm managing $1 billion in assets focused on the middle market. Gamut was founded in 2015 by Stan Parker and Jordan Zaken who have over 35 years of combined private equity investing experience across a wide range of industries, in a broad spectrum of traditional and non-traditional private equity structures, and throughout economic cycles. Gamut’s senior deal professionals have executed investments in over 30 companies in North America and Europe. To learn more, please visit www.gamutcapital.com. 

About WL Ross & Co. LLC

WL Ross & Co. LLC is a private equity firm specializing in middle market, restructurings, buyouts, turnarounds and special situations. The firm is wholly owned by Invesco and part of its Invesco Private Capital Division.

Gamut Capital Management To Acquire JPW Industries

NEW YORK – July 19, 2017 – Funds managed by Gamut Capital Management, L.P. (“Gamut”), a New York-based middle market private equity firm, announced that they have signed a definitive agreement to acquire JPW Industries, Inc. and its global affiliates (“JPW”), a leading manufacturer, designer and distributor of a wide range of machinery and equipment under the JET®, Powermatic®, Wilton®, Edwards® and Promac® brands, from Tenex Capital Management.

Headquartered in La Vergne, Tennessee and founded in 1958, JPW’s branded specialty shop tools and equipment serves a broad range of applications and end markets.  JPW products include metalworking and woodworking machinery, vises and clamps, ironworkers, lifting systems, air and hand tools and related parts and accessories.  JPW operates in six countries on three continents and has more than 270 employees worldwide.

Stan Parker, Founding Partner of Gamut, said, “JPW has set the standard for quality, reliability, innovation and service across a broad range of applications and end users. We are delighted to partner with JPW and its strong management team to accelerate its development.”

Robert Romano, Chief Executive Officer at JPW, said, “We have enjoyed our partnership with Tenex and deeply value their strategic input and guidance. As we enter our next phase, we are excited to have the support of Gamut and look forward to leveraging their experience and resources as we continue to grow.”

Mr. Romano will remain with the company as CEO and will serve on the Board of Directors.  At the close of the transaction, which is expected by the third quarter of this year, Stephen Van Oss, a Gamut Operating Partner, will join JPW’s Board of Directors as Non-Executive Chairman.  Terms of the transaction were not disclosed.

Goldman Sachs & Co. LLC served as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Gamut.  BB&T Capital Markets served as financial advisor and Kirkland & Ellis LLP served as legal counsel to JPW. Goldman Sachs Bank USA, BMO Harris Bank N.A. and BNP Paribas are providing financing commitments for the transaction, subject to customary terms and conditions.

About JPW Industries

Headquartered in La Vergne, Tennessee, JPW Industries, Inc. designs and markets a wide range of machinery and equipment under the JET®, Wilton®, Powermatic®, Edwards® and Promac® brands.  In addition to its North American headquarters, the company has operations in Europe and Asia. It sells through a vast network of distributor partners worldwide. Visit JPW at www.jpwindustries.com.

About Gamut Capital Management

Gamut Capital Management is a New York-based private investment firm managing $1 billion in assets focused on the middle market. Gamut was founded in 2015 by Stan Parker and Jordan Zaken who have over 35 years of combined private equity investing experience across a wide range of industries, in a broad spectrum of traditional and non-traditional private equity structures, and throughout economic cycles. Gamut’s senior deal professionals have executed investments in over 30 companies in North America and Europe. To learn more, please visit www.gamutcapital.com.

Gamut Capital Management Raises $1 Billion for Debut Middle Market Private Equity Fund

NEW YORK – January 4, 2017 – Gamut Capital Management, L.P. (“Gamut”), a New York-based middle market private equity firm, today announced it successfully closed Gamut Investment Fund I, L.P. (and affiliates) (the “Fund”) at $1 billion, exceeding the Fund’s $750 million target.
 
Gamut’s flexible investment strategy incorporates leveraged buy-outs, corporate carve-outs, strategic partnerships, and distressed-for-control situations. The Fund’s target investment size ranges from $50 million to $150 million with an ability to selectively scale up its capital commitment in partnership with its LPs.  Gamut’s Founding Partners, Stan Parker and Jordan Zaken, have more than 30 years combined experience investing across sectors, capital structures and cycles.  Target industries include: agriculture, chemicals, telecom, industrials, mining, power, distribution, technology, energy and transportation.
 
Messrs. Parker and Zaken stated: “We are thrilled with the strong level of support that we’ve received from our investors and are currently evaluating a wide spectrum of potential investment opportunities.” 
 
UBS Private Funds Group acted as the exclusive placement agent for Gamut.  Paul, Weiss, Rifkind, Wharton & Garrison LLP and Katten Muchin Rosenman LLP served as legal counsel to the Fund.

About Gamut Capital Management
 
Gamut Capital Management is a New York-based private investment firm managing $1 billion in assets focused on the middle market. Gamut was founded in 2015 by Stan Parker and Jordan Zaken who have over 35 years of combined private equity investing experience across a wide range of industries, in a broad spectrum of traditional and non-traditional private equity structures, and throughout economic cycles. Gamut’s senior deal professionals have executed investments in over 30 companies in North America and Europe. To learn more, please visit www.gamutcapital.com.