Transaction overview

MidOcean Partners has closed a continuation vehicle transaction for Cloyes Gear and Products, Inc., securing approximately $300 million in commitments from funds managed by Hamilton Lane to extend its ownership of Cloyes. The North American leader in automotive aftermarket timing drive systems and components, Cloyes operates under the Cloyes® brand throughout North America and Dynagear® in Mexico, serving a broad customer base including wholesale distributors, retailers, re-packagers, and production engine builders.

Deal structure and financing

The continuation vehicle's $300 million commitment from Hamilton Lane enables MidOcean to extend its ownership of Cloyes while providing existing investors with liquidity options or the chance to continue investing alongside the firm. Piper Sandler & Co. served as exclusive financial advisor for this transaction, though specific equity/debt split and lead bank details are not disclosed. The new investment by MidOcean-managed entities is aimed at supporting Cloyes’ continued growth through acquisitions, product innovation, and operational improvements.

Strategic context

MidOcean’s decision to extend its partnership with Cloyes stems from the company's strong market position in a resilient automotive aftermarket sector, driven by aging vehicle fleets and increasing complexity. Since MidOcean first invested in 2022, Cloyes has solidified its leadership through strategic acquisitions, operational enhancements, and product innovation. The continuation vehicle supports this trajectory, leveraging Cloyes' extensive product portfolio, global sourcing capabilities, and robust distribution network to capitalize on favorable industry trends.

Regulatory path

No specific regulatory review information is provided for this transaction, but given the deal’s size and sector involvement, it may have required filings under the Hart-Scott-Rodino Antitrust Improvements Act (HSR) in the United States. Additional scrutiny could also potentially involve competition authorities in Canada or Mexico due to Cloyes' operations across North America and its significant market share in automotive aftermarket timing drive systems.

Media Contact

Tia Wilson

twilson@hamiltonlane.com

+1 484 816 6982

Shareholder Contact

John Oh

joh@hamiltonlane.com

+1 610 617 6026