AUBURN HILLS, Mich.—Private equity firm the Gores Group has acquired Auburn Hills-based injection molder U.S. Farathane Corp. for more than $100 million.
Los Angeles-based Gores Group is led by Alec Gores, brother of Detroit Pistons owner Tom Gores.
U.S. Farathane CEO Andy Greenlee and several members of its management team were part of the deal, which closed on Dec. 23.
The supplier of plastic injection molded components to auto makers, such as General Motors Co., Ford Motor Co. and FCA U.S. L.L.C., generated $402 million in sales in 2013, up from $161 million in 2010. The company ranked No. 12 in Plastics News' most recent survey of North American injection molders. Plastics News is a sister publication of Rubber & Plastics News.
The company has 225 injection presses. U.S. Farathane also does compression molding and extrusion. The company started extruding plastics in 2004 and expanded a year later when it bought the Ligon Bros. Manufacturing Co.'s plastic extrusion business in Almont, Mich.
U.S. Farathane operates 10 facilities, including locations in Sterling Heights, Orion Township, Utica and Westland, Mich.; Jackson, Tenn.,; and Austin, Texas.
“We look forward to expanding our culture through strategic acquisitions, expanding our global footprint and adding technology to our arsenal,” Greenlee said in a news release. “The expertise the Gores Group provides will be critical in moving U.S. Farathane to the next level as a solution-based and value driven provider.”
Troy, Mich.-based Evergreen Partners L.L.C. co-invested with Gores on the deal. Wells Fargo Capital Finance and KKR Capital Markets partially financed the transaction, according to a release.
Birmingham, Mich.-based Angle Advisors served as the financial adviser for U.S. Farathane.
Farathane was the 2005 Plastics News Processor of the Year.