MidOcean Partners announced the successful closing of a single-asset continuation vehicle for Cloyes Gear and Products, securing approximately $300 million in commitments. Funds managed by Hamilton Lane served as the sole lead investor in the transaction.
The continuation vehicle supports MidOcean’s ongoing ownership of Cloyes, a designer, manufacturer, and distributor of timing drive systems and automotive aftermarket components. MidOcean-managed entities also made an additional investment in the company and will continue holding a controlling stake following the transaction.
MidOcean said the new investment structure extends its partnership with Cloyes while supporting future growth initiatives, including acquisitions within the automotive aftermarket sector. The continuation vehicle also provides existing investors with the option to realize liquidity or continue participating alongside MidOcean in the company’s future growth.
Since MidOcean’s initial investment in 2022, Cloyes has expanded through product innovation, category growth, acquisitions, and operational improvements. The company also announced that CEO John Hanighen has been appointed Chairman of the Board.
Cloyes operates in the automotive aftermarket industry supplying mission-critical timing drive systems and engine components used in replacement and high-performance applications. The company serves wholesale distributors, retailers, engine builders, and automotive aftermarket customers globally.
MidOcean said the automotive aftermarket sector continues benefiting from long-term trends including aging vehicle fleets, rising vehicle complexity, and sustained consumer reliance on personal transportation.
Piper Sandler served as exclusive financial advisor to MidOcean, while Kirkland & Ellis acted as legal advisor for the continuation vehicle transaction.
KEY QUOTES:
“Cloyes is a high-quality, market-leading business with a strong track record of performance and a differentiated position in the automotive aftermarket. We’ve been proud to partner with the Cloyes management team in driving growth and operational excellence, and we believe the Company is well-positioned to capitalize on favorable industry trends. This transaction underscores our conviction in Cloyes’ long-term value creation potential.”
Daniel Penn, Managing Director, MidOcean Partners
“Cloyes has built a reputation as a trusted supplier of critical engine components, and demand for our products remains strong. With MidOcean’s continued support, we are focused on expanding our product offerings, enhancing our supply chain capabilities, and delivering best-in-class service to our customers worldwide.”
John Hanighen, Chief Executive Officer And Chairman, Cloyes
“Cloyes represents a compelling investment opportunity, underpinned by its strong market leadership and exposure to durable automotive aftermarket trends. We look forward to partnering with MidOcean and Cloyes’ management to support the Company’s next phase of growth.”
Tom Kerr, Co-Head Of Investments And Co-Head Of Secondary Investments, Hamilton Lane
