BGL Sews Up Deal Between H.I.G. and Automotive Supplier
January 13 2006
Brown Gibbons Lang & Company (BGL) today announced the recapitalization of automotive suppler HFI, Inc. (HFI) with H.I.G. Capital (H.I.G.), a leading private equity and venture capital investment firm with more than $2 billion of equity capital under management. As a strategic partner, H.I.G. will help HFI leverage its strong track record of industry-leading quality, value and service to grow the business. Terms of the transaction were not disclosed.
HFI is a leading Tier II automotive supplier focused on the manufacture and assembly of interior trim components such as seating, headrests, armrests, cushions, center consoles, and door, floor, ceiling and dashboard trim.
Headquartered in Columbus, Ohio, HFI has world class manufacturing and assembly capabilities and provides excellent customer service. HFI’s management team, led by President Walt Dennis, has extensive experience in the automotive industry, building and strengthening relationships with the highly-successful Japanese transplant auto manufacturers and their Tier I suppliers.
HFI engaged BGL to manage the recapitalization of the company due to BGL’s extensive experience in the automotive industry and recapitalizations, including several recently closed and pending transactions. Understanding the dynamics of the automotive industry, BGL targeted select financial investors that would recognize the value of HFI. Ultimately, H.I.G. was selected to partner with HFI and existing management. HFI’s shareholders will maintain a sizable ownership stake in the business post-transaction.
“Our knowledge of the private equity market, automotive industry expertise and dedication to meeting our clients’ objectives have led to a successful outcome for HFI that will enable it to continue an impressive track record of success,” said John Tilson, director of BGL.
“BGL’s process yielded a very successful outcome. We found a great partner who will work seamlessly with our management team to help us substantially grow our business,” said Walt Dennis, president of HFI.
“We are very pleased to have the opportunity to partner with Walt and a very strong existing HFI management team. The company is exceptionally well-positioned to capitalize on the competitive dynamics in the U.S. automotive industry, in particular the expected continued growth of the “transplant” manufacturers (foreign OEMs with U.S. manufacturing operations). Walt and his management team have done an excellent job of growing this business during turbulent times in the automotive market and we intend to help the company build on this legacy by continuing to increase HFI’s penetration into both new and existing customers,” said John Black, managing director of H.I.G.
About Brown Gibbons Lang and Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank serving middle market companies and their owners throughout the U.S. and internationally. BGL’s professionals are experts in mergers & acquisitions, debt & equity placements, and financial restructurings. BGL is the U.S. partner in Global M&A
, the world’s leading partnership of top-tier independent financial advisory firms focusing on mid-market cross-border transactions. For more information, please visit www.bglco.com.
About H.I.G. Capital
H.I.G. Capital (H.I.G.) is a leading private equity firm focused on management buyouts and recapitalizations of leading middle market companies as well as growth equity investments. With more than $2 billion of equity capital under management, H.I.G., through its sizeable organization with substantial operational resources, is dedicated to helping talented management teams and entrepreneurs build companies of significant valu
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