Investors Plan To Buy Autocam

May 7, 2004
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KENTWOOD — A group of investors has signed a definitive agreement to acquire Autocam Corp. from Aurora Capital Group for $390 million in a deal expected to close by the end of the second quarter.

The investor group includes Autocam CEO John Kennedy, Transportation Resource Partners LP and GS Capital Partners 2000 LP.

Transportation Resource Partners is a $265 million private equity fund that invests in growth oriented companies in the transportation and transportation services industry.

According to investors, Autocam’s senior management team will remain in place and the company will continue to operate out of its Kentwood headquarters.

The company has operations and manufacturing facilities in North America, France, Brazil and China. Autocam’s revenues were $323 million in 2003.

Kennedy said he believes Transportation Resource Partners/Penske Corp. can help Autocam continue to grow because of its relationships with Autocam’s existing and target customers.

“Transportation Resource Partners and Goldman Sachs believe in our strategy and are willing to provide the resources to support our growth,” he said.

Roger Penske, CEO of Penske Corp. and a lead partner in the investment group, said his company has known Kennedy and Autocam for years.

“Autocam has an outstanding reputation as a first-rate manufacturer of critical performance and safety-related parts and systems,” Penske said. “As partners, we see opportunities to support John and his team at Autocam as it pursues its next phase of growth.”

Adrian Jones, managing director at Goldman Sachs, said Autocam has become “the recognized market leader” in several segments of the automotive precision parts industry.

“GS Capital Partners’ investment is consistent with our strategy of investing in market-leading companies with outstanding management teams and supporting their continued growth.” Jones said.    

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