OpenGate Capital stands to make a stunning 50 times return by agreeing to sell car parts manufacturer Ride Control after a two-year holding period.
The firm picked up shock absorber and strut maker Ride Control from ArvinMeritor in June 2009 and bolted on Ride Control Mexicana from the same owner a month later.
OpenGate Capital founder, managing partner and CEO Andrew Nikou said, “This is a complete success story for OpenGate Capital and Ride Control.
“When we first acquired the business, it was struggling and cash-negative.
“In just three and a half years, revenues increased by 20 per cent, and EBITDA went from a negative position to nearly $20m today.
“This was all through our operational strategies implemented within the first year of ownership, which led to expanded distribution and improved operations.
“We saw great potential in the business and knew we could revitalize the operations and create tremendous upside in our investment.”
Despite the mammoth return financial details of the sale to MAT Holdings were not disclosed.
Last month OpenGate agreed to buy French inflatable boat inventor Zodiac Recreational from parent Zodiac Marine & Pool, a Carlyle Group portfolio company.
Zodiac said it was divesting Zodiac Recreational as part of an on-going strategy to refine and refocus on military, professional and clean water industries.
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