SOUTHLAKE, Texas and BURR RIDGE, Illinois – June 5, 2014 – Insight Equity Holdings LLC (“Insight Equity”), the Southlake, Texas headquartered private equity firm, is proud to announce that its portfolio company New Star Metals, Inc. (“New Star”) has sold its Global OE and Aftermarket Brake Shim business to Wolverine Advanced Materials, LLC (“Wolverine”) for an undisclosed sum. New Star acquired the Global OE and Aftermarket Brake Shim business as part of its acquisition of Material Sciences Corporation (“MSC”) in March. With the sale proceeds, New Star made a dividend payment to its shareholders as well as repaid debt.
Patrick Murley, CEO of New Star, commented, “For years MSC provided excellent products to solve brake noise issues. However, New Star’s future focus will be on value-added coated products, metal to metal laminating and composites, and other mass reduction technologies. This divestment will allow us to dedicate our technical resources and our four uniquely-capable production facilities to our core product offerings.”
“This non-core divestiture allowed New Star to unlock value for its shareholders only a few months after its acquisition of MSC,” remarked Jack Waterstreet, a Principal at Insight Equity.
Ted Beneski, CEO & Managing Partner at Insight Equity, noted, “We are excited that New Star made its third dividend since we acquired the company less than two years ago. We look forward to continuing to support the New Star team in further value creating activities.”
About New Star Metals
New Star Metals provides metal processing, building products and supply chain management across a diverse array of end markets. Based in the Chicago area, New Star Metals operates through its five divisions: Canfield Coating, Electric Coating Technologies, Material Sciences Corporation, Premier Resource Group, and World Class Corrugating.
About Insight Equity
Insight Equity makes controlling investments in strategically viable, middle market, asset intensive companies across a wide range of industries. Insight Equity specializes in partnering with companies in complex and challenging situations, including corporate divestitures, aggressive growth opportunities, restructurings, and transitions from private family ownership. The firm leverages a proven, collaborative value creation model to facilitate operating enhancements and growth. Insight Equity’s headquarters is located near the Dallas / Ft. Worth International Airport in Southlake, Texas. The firm also has an office in New York City.