ROSEVILLE, Mich.—Dayco L.L.C. said it plans to build a new belt manufacturing facility in San Luis Potosi, Mexico, to produce original equipment quality drive belts.
The announcement comes a little more than a month after private equity firm Hidden Harbor Capital Partners closed on a deal to acquire Roseville-based Dayco.
Dayco, in a Nov. 2 news release, said the high-tech belt production facility will be build in Parque Tres Nations, a large industrial park in San Luis Potosi. Construction is expected b be completed by the first quarter of 2024.
"This is an exciting strategic investment that allows us to expand Dayco's presence in North America and subsequently, the company's overall global footprint," John Kinnick, president of Dayco's Global Belt Division, said in a statement. "As a result, we will be even better placed to serve our valued customers and provide them with quality products at the right value."
Dayco didn't provide any further details on the project, including investment, size of the facility or capacity.
Founded in 1905, Dayco said it is a leading engine product and drive systems manufacturer for the automotive, heavy duty, truck, construction, agriculture and industrial segments, servicing both OE and aftermarket accounts. And as of Sept. 30, it is owned by Boca Raton, Fla.-based PE firm Hidden Harbor Capital Partners.
"This is an important milestone for our business, and we are excited as we enter our next phase of growth with our new partners at Hidden Harbor," Dayco CEO Joel Wiegert said when the deal was first announced in August. "We look forward to teaming up with our new partners at Hidden Harbor and drawing upon the expertise of their operating partners to build on Dayco's success.
"Our partnership with Hidden Harbor will enable Dayco to have greater flexibility to deliver for our customers, supply chain partners and employees, and move forward together toward a successful future."
Terms of the deal were not disclosed.
Dayco employs more than 3,600 at 40 locations in 22 countries. The firm said its ability to transfer power quietly and efficiently has helped it become a leading solutions provider for hybrid electric vehicles.
Andrew Joy, a partner at Hidden Harbor, said the firm is "excited to work with Joel and the rest of the talented global executive leadership team and employees to further build upon the Dayco brand, which has been valued by customers and partners worldwide for more than 100 years."
The private equity firm said it currently manages more than $700 million of equity capital, following a philosophy that "great companies are built on a strong group of people as their foundation, and that businesses succeed when they are intensely focused on executing a small set of well-defined objectives."
