December 16, 2011, New York, NY – Global alternative asset manager The Carlyle Group announced today that it has sold Diversified Machine Inc. (DMI), a global sole-source provider of safety-critical chassis and powertrain components to major automotive manufacturers and suppliers, to Platinum Equity. Terms of the transaction were not disclosed.
Carlyle Strategic Partners, which makes distressed and opportunistic corporate investments, initiated the investment in DMI with the November 2005 bankruptcy court purchase of an automotive component machining and manufacturing operation. Carlyle was joined in the purchase by an experienced management team led by Bruce R. Swift, who continues as Chief Executive Officer of DMI following the purchase by Platinum. During Carlyle’s ownership, DMI grew through a series of acquisitions into a global manufacturer of precision chassis and suspension products, including steering knuckles and control arms, as well as engine products, including engine blocks and cylinder heads.
Michael Stewart, a Managing Director of Carlyle Strategic Partners, said, “This sale represents the culmination of a productive long-term partnership with DMI management. Together we took a niche domestic automotive company out of bankruptcy and worked effectively to create a competitive global company.”
“We exceeded our investment goals for DMI, and we are gratified that the company is well positioned for the future,” said Shary Moalemzadeh, a Managing Director of Carlyle Strategic Partners.
“Carlyle has been a great partner over the past six years as we have built DMI,” said Bruce Swift. “I thank them for all of their support, and look forward to working with Platinum Equity as we continue to innovate and grow.”
About The Carlyle Group
The Carlyle Group is a global alternative asset manager with $148 billion of assets under management in 89 active funds and 52 fund of fund vehicles as of September 30, 2011. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has developed expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,200 people in 33 offices across six continents.
About Diversified Machine
Diversified Machine Inc. is a leading vertically-integrated supplier of fully engineered chassis and powertrain components and modules for the automotive OEMs and Tier 1 suppliers. A global supplier with operations strategically located to better serve its customers, DMI offers fully-integrated design, development, testing, casting, machining, and assembly capabilities, of both aluminum and ductile iron components. DMI’s integrated machining and casting capability, often in the same manufacturing environment, provides for full-service supply, higher efficiency and quality, and lower cost to the customers. DMI’s global operations include: machining and assembly plants; aluminum foundries that cast and machine; a ductile iron foundry; an engineering design and testing lab; and a full service supplier capability.
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