Stonebridge Partners is pleased to announce that it completed a growth equity recapitalization of Exal Group, the largest manufacturer of shaped aluminum containers in the world, in conjunction with Teachers Private Capital (TPC), a division of Ontario Teachers’ Pension Plan. The transaction closed on April 1, 2010, and represents the second equity investment of Stonebridge Partners Equity Fund IV.
Stonebridge initiated the transaction with the seller outside of an auction process and, given the significant size of the investment, selected TPC as the appropriate partner to lead the recapitalization. Stonebridge and affiliates provided a $40 million investment in the transaction and will play an active role in overseeing the business.
Exal is the recognized leader in specialty aluminum can manufacturing, possessing the most technologically advanced production capabilities in the world. The Company primarily serves the personal care and beverage markets with seven plants strategically located in the United States, Europe and South America. Exal was founded in 1993 in Youngstown, Ohio, and with $275 million of invested capital to date, has grown to over $400 million in revenues, employs over 1,300 people, has 47 production lines and produces 1.3 billion shaped aluminum cans globally. With the recapitalization, Exal is poised to continue its substantial growth through investment in new manufacturing facilities and equipment, entry into new global markets, and the completion of selected strategic acquisitions.
Stonebridge’s Managing Partner, Michael S. Bruno, Jr., commented: “We are extremely excited with our investment in Exal and look forward to working closely with TPC and the Exal management team. Through my participation on the Exal Board of Directors, I will share Stonebridge’s operational experience, guidance and judgment with the Company. Exal is truly an exceptional business with experienced and passionate managers. They will have our full support and commitment for continued growth and success.”
Stonebridge Partners has over 24 years of experience recapitalizing and supporting the growth objectives of middle market manufacturing companies. During this time, the Company has invested $550 million of equity in approximately 50 acquisitions and is currently investing through Stonebridge Partners Equity Fund IV, L.P. which closed in July 2008. The Firm’s principal focus is value-added manufacturing companies, specifically in the packaging, infrastructure, building products, and specialty manufacturing industries. In addition to providing capital for growth, Stonebridge utilizes its Operating Partner business model to assist talented management teams in achieving their strategic goals and to generate significant growth in sales and profitability.
TPC is one of the world’s largest private equity investors with approximately $20 billion allocated to private equity investing. TPC is the private investment department of the Ontario Teachers’ Pension Plan Board, the largest single profession pension plan in Canada. Stonebridge selected TPC as its partner based upon its excellent reputation, significant equity capital and expertise in large, international transactions.
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