Investment firm Apollo Funds to buy majority stake in ABC Technologies

Investment firm Apollo Funds, managed by Apollo Global Management Inc., is acquiring a majority stake in Toronto-based automotive parts molder ABC Technologies Holdings Inc.

Apollo Funds will purchase 51 per cent of the outstanding common shares of ABC from ABC LP for CAD$10.00 per common share, according to an April 13 news release.

“ABC’s strong operational and financial performance, combined with its near-term opportunities as a platform for industry consolidation in the automotive technical plastics space, led to an unsolicited offer from the Apollo Funds to acquire a majority stake in the company and join in the journey outlined during ABC’s recent IPO process,” Todd Sheppelman, ABC’s president and CEO, said in the release.

At closing, Apollo will also be able to nominate five of the nine members of ABC’s board and ABC will retain its ability to nominate three members of the board.

Apollo and ABC expect to announce the future composition of the board closer to the closing date, the release said.

“We are excited to gain access to Apollo’s expertise and resources and look forward to a highly collaborative relationship as we continue to grow our business and better serve global automotive customers with industry-leading products,” Sheppelman added.

Founded in 1974, ABC makes a wide range of automotive systems and components using include blow and injection molding, thermoforming, sheet extrusion, interior and exterior painting, and material compounding.