Barten
REMATECNEWS 8-2011:REMATEC-1/2004
07-12-2011
14:04
Pagina 5
NEWS FROM THE INDUSTRY
Cardone brings in investors The family behind the world’s largest independent remanufacturer sells majority stake to investment group TPG. The name Cardone will continue to figure on the company’s signs, logos, boards, packaging and much besides. After two generations the family carrying its name will continue to be the driving force behind Cardone Industries Inc. But it will no longer be the sole owners of the world’s largest independent remanufacturer. From the new year Cardone Industries Inc will be majority owned by the investment company, TPG, a private equity business with offices across the world. Cardone’s decision to seek fresh capital is based on high expectations for further growth and opportunities for expanding the company’s activities across the board, the company says. “The remanufactured automotive parts industry is as strong as it has ever been and CARDONE experienced the best sales year in the company’s history in 2010,” Michael Cardone, Jr., Chairman and CEO of CARDONE Industries said. “Our dynamic growth and the increased demand for our products have presented CARDONE with business opportunities on a scale that we have never experienced before.” “Over the past few months, CARDONE explored a variety of options that would provide the company with an influx of capital to accelerate expansion and invest in the future growth of the company,” he added. “The acquisition of CARDONE by TPG will strengthen our position to pursue new product lines and further enhance our competitiveness within the industry.” Following the transaction, TPG will become the controlling shareholder and will work with the Cardone family and executive team to continue the company’s growth, TPG said in a statement. The transaction is expected to close at the end 2011.
TPG Capital A new player in remanufacturing, TPG Capital is a global, private investment firm founded in 1992 with $48 billion of assets under management and offices in San Francisco, Beijing, Chongqing, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, São Paulo, Singapore and Tokyo. The company has extensive experience with public and private investments worldwide, based on leveraged buyouts, recapitalizations, spinouts, growth investments, joint ventures and restructurings. “TPG has helped
Michael Cardone Jr. sells a majority share in Cardone Industries to investor group.
to optimize and grow many industrial businesses such as Armstrong World Industries, American Tire Distributors, Ducati, Graphic Packaging, Grohe, Kraton Polymers and Nexeo Solutions,” the company says. TPG has also invested in world-class companies in a variety of industries including Burger King, Neiman Marcus, J.Crew and PETCO. “We have been extremely impressed with the superb franchise that the Cardone family and its employees have built in the remanufacturing segment,” said Kevin Burns, partner at TPG Capital. “With its diverse portfolio of remanufactured products for cars and light trucks, and unmatched reputation for quality and reliability, CARDONE ensures its customers can meet the growing needs of the aging U.S. auto fleet. We look forward to working with the CARDONE team to build upon the great foundation that’s already in place.”
Cardone Industries Inc. Founded in 1970 by Michael Cardone Jr. and his late father, CARDONE Industries In Philadelphia, Pennsylvania, has been privately held, family-owned and operated since its foundation. Over the course of 42 years and three generations, the Cardone family built the company from the ground up to become a world leader in the automotive remanufacturing industry with operations in five countries and 6,000 employees. The Cardone family is committed to remaining an important part of the company and looks forward to working with TPG to grow the business, the company said in a statement. In June this year Michael Cardone Jr. gave the keynote speech at the the award ceremony for ReMaTecNews’ Remanufacturer of the Year Award in Amsterdam.
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