Oaktree Capital Management is acquiring Cerebrus Capital Management's remaining stake in ABC Technologies Holdings Inc., one of North America's largest injection and blow molders.
Oaktree is paying is C$124.7 million (US$98.4 million) for the stake in Toronto-based ABC Technologies.
"We believe the future of [ABC] is bright and see it as a beneficiary of the key trends of lightweighting and electrification in the automotive industry," Brook Hinchman, co-head of North America for Oaktree's global opportunities strategy, said in a news release.
"ABC Technologies is well suited to be a consolidator in the automotive technical plastic space, and Oaktree looks forward to supporting the company and its strong management team led by Todd Sheppelman," Hinchman added.
ABC is No. 14 in Plastics News' ranking of North American injection molders with an estimated $500 million in annual sales in the region, and No. 15 among blow molders with $425 million in sales.
Under the terms of the share purchase agreement, OCM Luxembourg OPPS XI sàrl and OCM Luxembourg OPPS XB sàrl — collectively, the Oaktree Funds — will purchase 13,854,412 common shares of ABC at closing for C$9.00 (US$7.10) per share, a Sept. 13 news release said.
At closing, OPPS XI will also be able to nominate three of the nine members of ABC's board of directors.
Cerebrus sold its majority stake in ABC to Apollo Funds, managed by Apollo Global Management Inc., earlier this year.
"Together, we have transformed ABC Technologies into a market-leading, publicly traded company with compelling growth opportunities ahead," Dev Kapadia, senior managing director of Cerberus, said. "We look forward to following the company's continued success in its next chapter with the support of new strategic partners."