Precision Die Casting

Situation

Precision Die Casting, Inc. (“Precision Die Casting”, “PDC” or the “Company”), based in Russellville, Kentucky, is a leading supplier of high quality-quality, complex aluminum die castings for the North America automotive industry.

The Company manufactures a comprehensive portfolio of product solutions for steering components, compressor components, pumps and valve housings.

Having acquired this unprofitable division from a large public company, its owner, Calvert Street Capital Partners (“CSCP”), discovered over time that poorly maintained equipment and improperly priced contracts presented impediments to profitable operation that were too significant for a financial sponsor to overcome.

Solution

Based on its experience with automotive suppliers, combined with restructuring and M&A resources, Amherst Partners (“Amherst”) was selected by CSCP to lead the process of selling the business.

Under time pressure from the Company’s senior lender, Amherst pursued an expedited sale process focused on strategic buyers, both domestic and international, that were capable of turning around the operations of PDC and would value the Company’s existing customer relationships.

Multiple prospective buyers were engaged simultaneously, with the resulting competitive tension allowing CSCP to benefit in terms of both purchase price and contract terms.

Results

Amherst identified and completed the sale of PDC to Rane (Madras) Limited (“Rane”).

Based in Chennai, India, Rane is a global manufacturer of steering and suspension linkages, steering gears and high-precision aluminum die cast products for the transportation industry.

PDC represented Rane’s first investment in North America, and provided a critical geographic link for serving Rane’s global automotive customers.

The Company’s senior lender was paid in full at closing. CSCP continues to call on Amherst to advise on situations involving automotive and industrial businesses.