Platinum Equity announced that it has acquired a majority interest in Keystone Automotive Holdings Inc., the parent company of Keystone Automotive Operations Inc. ("Keystone"). Platinum reports that it will work with the company's management team on an operational plan to improve Keystone's ability to compete in the automotive specialty-equipment market.
Platinum was previously Keystone's largest bond holder and worked closely with Keystone and the company's other debt holders to develop and execute a recapitalization plan that resulted in Platinum becoming the majority owner of the business.
Platinum achieved its majority ownership position through an exchange offer that closed on March 29, 2011, in which Platinum and other bond holders converted debt to equity and acquired additional common stock through a rights offering.
"Keystone has a strong management team, dedicated employees and an unparalleled distribution network," said Jacob Kotzubei, partner, Platinum Equity, who led the team pursuing the Keystone acquisition. "With a restructured balance sheet, ample liquidity and the added support of Platinum's operations team and M&A resources, Keystone is now well positioned for growth and long-term success."
Ed Orzetti, Keystone CEO since 2006, will continue to lead the company under Platinum Equity's ownership.
"Partnering with Platinum Equity and successfully recapitalizing our business is great news for Keystone's customers, suppliers and employees," said Orzetti. "We will continue to offer the most comprehensive inventory selection in our industry, the highest levels of customer service and the innovative marketing support our partners expect and deserve."
Platinum has already deployed a team to work with Keystone on a plan to improve overall business performance. Kotzubei said that Platinum's M&A resources will actively support Keystone going forward as well.
"We will work closely with Keystone to identify and pursue opportunities to grow the business organically and through additional acquisitions," said Kotzubei.