Genstar Capital completed its acquisition of Modesto, Calif.-based Boyd Corp. from Snow Phipps Group L.L.C. on April 16, the company said in a statement.
Headquartered in Modesto, Boyd operates five U.S. manufacturing facilities and four others in China. It also has manufacturing in South Korea, Thailand and Germany, with technical centers in Sweden and Taiwan.
Genstar said Boyd's product offerings include thermal management, environmental sealing, bonding, protecting, insulating and other specialized customer solutions using both rubber and thermoplastics.
Financial terms of the deal were not disclosed. Boyd CEO Mitch Aiello said employment will not be affected.
“We've known the Genstar guys for quite some time,” Aiello said. “One of their areas of practice is the industrial space with a focus on engineered products and components. They have a tremendous group of advisers in this space with great industry experience and a lot of different end markets and processes. Patterning with their advisory board is valuable, they have great access to growth capital and really fine experience in the space.”
Boyd is active in a number of industries, including auto, commercial vehicle, agriculture, aerospace, medical and electronics. Aiello said the firm is looking to strengthen its position within its already established industries, specifically in device and consumable areas in the medical field and in the airframe structure area of the aerospace industry.
“We don't see a lot more diversity, but Genstar does have some connections in areas where we look to expand our business,” he said.
He said Boyd's involvement in engineered components makes it attractive to investors, as well as its partnerships with original equipment manufacturers. The CEO said Boyd's average tenure of the firm's top 25 customers is more than 15 years, moving from platform to platform with their customers as they grow and develop new technology.
“Boyd delivers best-in-class solutions for customers to ensure the efficacy, durability, and functionality of many of the world's most recognizable brands across a number of global industries,” Genstar Managing Director Rob Rutledge said in a statement. “The management team, led by Mitch Aiello, has done an excellent job building the company into a leading player in its markets globally. Boyd's stellar reputation is based on intense customer focus and precise execution and we are excited to support its continued growth and expansion.”
Snow Phipps had acquired Boyd in July 2012 and since has completed several acquisitions, most recently buying the Solimide foam business from Evonik AG in September 2014 to boost Boyd's presence in the aerospace market.
Prior to that, Boyd acquired the Asian and European die-cut businesses of Brady Corp. in August 2014 to strengthen its presence in the mobile computing and electronics markets. It also established Boyd's first manufacturing presence in Europe.
“This transaction validates our investment process,” Snow Phipps CEO Ian Snow said in a statement. “Acquiring high quality businesses like Boyd and building partnerships between management, our investment team and operating partners create significant opportunities for our portfolio companies during and after our ownership.”
San Francisco based-Genstar is a middle market private equity firm that focuses on investments in targeted segments of the industrial technology, health care, financial services and software industries. It said it manages funds with total capital commitments of more than $3 billion.