Private equity takes on Cloyes Gears

KPS Special Situations Funds (KPS), New York, N.Y., a private equity firm, has acquired a controlling interest in Cloyes Gear and Products, of Fort. Smith, Arkansas. Cloyes supplies automotive timing systems and makes PM and machined parts.

KPS reports that it will make a substantial investment in Cloyes to fund growth opportunities. Founded in 1997, it has a more than $600 million pool of committed capital and investments in 11 other companies on behalf of institutional investors. The Meyers family, Cloyes' previous owners, has retained a minority interest in the company. Trevor Meyers, CEO, will remain with the company as will David L. Schaefer, vice president, business development and a former president of the Metal Powder Industries Federation.

Cloyes has four manufacturing plants in the United States and Germany, including three PM parts plants operating with more than 400 employees. It entered the PM business in 1978 by acquiring Rush Metals.

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