The Gores Group has agreed to sell automotive parts supplier US Farathane to Atlas Holdings.
US Farathane (USF) is a provider of injection molded, compression molded, and extruded products used in the interior and exterior of a vehicle. Customers of the company include automotive OEM’s and Tier 1 suppliers including General Motors, Ford, Stellantis, Tesla, Toyota, Honda, and Rivian.
USF is headquartered near Detroit in Auburn Hills, Michigan, and operates 18 manufacturing facilities in the United States, Mexico and China.
Atlas is partnering on this transaction with USF’s CEO Andy Greenlee, who will remain as CEO and also as chairman of the board.
“Atlas Holdings is the ideal partner for this next chapter in USF’s evolution,” said Mr. Greenlee. “We look forward to growing our business through strategic acquisitions, expanding our global footprint and adding technology to our strong foundation. The support and expertise that Atlas provides in the automotive sector will accelerate our growth initiatives and help move USF to the next level as a solutions-based and value-driven supplier. We could not be more excited about this partnership and what it means to our customers and employees.”
“USF has built a strong reputation as a leading automotive supplier and we are looking forward to working alongside Andy Greenlee and his highly capable team to support the next phase of USF’s growth and development,” said Jacob Hudson, the managing partner at Atlas.
The Gores Group acquired USF in January 2015. “We are proud of our successful partnership with Andy and the USF team, marked by a series of acquisitions that have accelerated the company’s expansion in Mexico and Asia,” said Alec Gores, the chairman and CEO of The Gores Group. “USF is another hallmark investment for Gores in the automotive industry, backing a company that delivers industry-leading products and solutions to various global OEMs. We are confident in USF’s bright future ahead with Atlas as an ongoing partner.”
Atlas is a holding company that has more than 26 platform companies operating in a wide range of sectors with more than $14 billion in total revenues, more than 50,000 employees, and more than 300 facilities worldwide. Some of the sectors that Atlas invests in are aluminum processing, automotive, building materials, food manufacturing and distribution, packaging, paper, power generation and wood products.
In April 2021, Atlas held a first, final, and hard cap close of its fourth private equity investment fund, Atlas Capital Resources IV LP, with $3.1 billion of capital. The firm was founded in 2002 by managing partners Andrew Bursky and Tim Fazio and is headquartered in Greenwich, Connecticut.
The Gores Group makes control investments of $100 million to $500 million in industrial, technology and consumer companies in the United States and Europe. The Gores Group was founded in 1987 and is headquartered in Los Angeles with additional offices in Boulder, Colorado.
Goldman Sachs and Deutsche Bank are the financial advisors to USF, and Houlihan Lokey is the financial advisor to Atlas.
The buy of USF by Atlas is expected to close in the second quarter of 2023.
© 2023 Private Equity Professional | May 17, 2023
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- Source: https://peprofessional.com/blog/2023/05/16/gores-group-sells-us-farathane/
