Strengthens its commitment to value creation with continued investments in industrial manufacturing and service businesses with a focus on the automotive sector
Stellex Capital Management ("Stellex"), a middle market private equity firm with offices in New York and London, announced today that it has opened an office in Ann Arbor, Michigan. The Company also announced the appointment of Shankar Kiru as Managing Director and Andrew P. Arton as Director. They will be based in the Ann Arbor office. The office officially opened on August 1st.
With a history of working productively with stakeholders, lenders and labor groups, senior Stellex professionals have been investing in the auto sector for over two decades. Since its inception in 2014, Stellex has continued to build strong relationships within the Detroit deal community and has invested in local businesses. The opening of its Detroit office represents a logical extension of Stellex’s commitment to the region and comes at an interesting time in the automotive space when the industry is looking to gain its footing from recent disruptions to its end markets.
"As a result of our long-established ties in the automotive industry and in the Detroit area, we are excited about the opening of our new office in Ann Arbor," said Michael Stewart, Managing Partner of Stellex. "As we continue to look at investment opportunities with a focus on industrial manufacturing and service businesses and a particular emphasis on the automotive sector, we believe in expanding our local presence where we see opportunities that can add value for our investors."
In addition, the Company announced the appointment of Shankar Kiru as Managing Director, responsible for working with both current portfolio companies on operational matters as well as new acquisition targets. With over 15 years of industry experience in acquisitions and integrations in sectors such as automotive, aerospace, and defense, Mr. Kiru joins Stellex from George Industries, an aerospace and defense supplier, where he was CEO. Prior to that, he was President of ATS Automation, a leading supplier of factory automation systems, and before that a Managing Director at Madison Capital Partners, a Chicago-based investment firm. Mr. Kiru also held the position of CFO at Diversified Machine where he completed eight acquisitions over a six-year horizon, establishing a strong compelling global presence and exceptional shareholder value.
With over 30 years of diverse experience in asset-based lending, underwriting, and loan workouts, Mr. Arton joins Stellex as a Director, responsible for expanding relationships with a number of constituents in the local Michigan market (lenders, business owners and advisors) and providing relevant expertise on the credit structuring of transactions. Prior to this role, he held several positions at a variety of midwestern financial institutions, most recently, he was a Senior Vice President, Specialty Lending Group at First Midwest Bank where Mr. Arton spearheaded the development of a new Michigan market for the regional bank headquartered in Chicago.
"We believe Shankar and Andrew are a great fit for our team as they bring a wealth of industry experience in executing transactions, portfolio company operations, and driving value creation, as well as strong relationships in the local community," said Ray Whiteman, Managing Partner of Stellex.
Mr. Kiru added, "Andrew and I are looking forward to working with the Stellex team and its local partners in sourcing middle market opportunities within the firm’s target industries. Stellex’s track record in successful investments in the industrial manufacturing and service businesses is evidence of its commitment and experience in these sectors."
Messrs. Stewart and Whiteman have been successfully investing in Michigan since the early 2000’s. Stellex Capital Management has successfully exited its investment in Morbark, LLC, based in Winn, Michigan and currently has one active investment in the Michigan area – Paragon Metals LLC.
About Stellex Capital Management LP
Stellex Capital is a private equity manager that invests in and oversees U.S. and European corporate assets. With $870 million of committed capital, Stellex’s focus is on companies going through business or industry transitions, as well as special situation opportunities. Stellex seeks to identify and deploy capital in opportunities that have the potential to provide stability, improvement, and growth. Portfolio companies benefit from Stellex’s industry knowledge, operating capabilities, network of senior executives, strategic insight and access to capital. Sectors of particular focus include specialty manufacturing, industrial and business services, aerospace & defense, automotive, and government services. Additional information may be found at www.stellexcapital.com