The acquisition will enable Solero Technologies to expand its portfolio of sustainable automotive products and global presence
LOS ANGELES – April 15, 2024 – Atar Capital, a Los Angeles-based global private investment firm, announced today that Solero Technologies has signed an agreement with Kendrion (KENDR.AS) to acquire Kendrion’s automotive business in Europe and the United States. Solero Technologies will effectuate the transaction with support from Atar Capital.
The transaction is expected to close in Q3 2024, subject to customary conditions. The transaction has an enterprise value of roughly USD 70 million (EUR 65 million). The revenue associated with the divestment is around USD 225.5 million (EUR 210 million), with TTM EBITDA of approximately USD 24.1 million (EUR 22.5 million) and represents approximately 80% of Kendrion’s automotive business.
Solero Technologies is a leading global supplier of transmission solenoids, engine solenoids, stop-start accumulators, and hydraulic control modules with recent development and launches of active suspension and electrification components. It has served the automotive industry for more than 50 years with a reputation for its quality, precision, and safety. Kendrion’s automotive business designs, manufactures, and delivers intelligent actuators that help advance the global push towards electrification and sustainable energy.
“With a commitment to shaping the future of mobility that prioritizes both people and the environment, the acquisition of Kendrion’s automotive business will further expand Atar’s purpose-driven portfolio into the automotive industry,” said Cyrus Nikou, founder of Atar Capital. “We’re confident this solidifies Solero’s leadership position in the space and we look forward to collaborating with the Kendrion team on the transition.”
“Kendrion’s automotive product portfolio is complementary and well aligned with Solero Technologies’ inorganic growth strategy,” said Dr. Donald James, CEO of Solero Technologies. “The combined company will be well-positioned for capitalizing on global opportunities that support the industry transformation to electrification and sustainability.”
To learn more about Solero Technologies, please visit the company’s website here.
About Atar Capital
Atar Capital is a global private investment firm that acquires a wide range of lower middle market businesses exhibiting opportunities for growth, revitalization and significant value creation. Atar Capital’s principals have collectively completed 90 private equity transactions across 18 countries worldwide.
Atar Capital’s combination of operational expertise, industry knowledge and investment experience provide a unique edge in creating value and working as a true partner with its portfolio companies. The firm assists in activities ranging from growing the business to improving operations and financial performance, leveraging all available resources and talent within Atar’s leadership team, as well as its bench of seasoned senior advisors with deep sector and functional expertise. For more information, please visit www.atarcapital.com.
About Solero Technologies
Solero Technologies is a leading global supplier of transmission solenoids, engine solenoids, stop-start accumulators, and hydraulic control modules with recent development and launches of active suspension and electrification components. The company’s capabilities include advanced design, prototyping, development, and manufacturing excellence combined with a strong intellectual property portfolio across all product categories. Solero Technologies has built an acclaimed reputation for developing and delivering high quality solenoid products to automotive OEMs, the aftermarket and other industrial sectors. The company’s industry-leading solenoid products are critical to the optimal performance of vehicles today and tomorrow. Today, the company operates from its manufacturing facility in Water Valley, Mississippi, along with related sales and engineering operations in Detroit. Visit www.solerotechnologies.com for more information.
About Kendrion N.V.
Kendrion designs, manufactures, and delivers intelligent actuators that help advance the global push towards electrification and sustainable energy. Today, these compact and connected actuators are used in wind power, robots, factory automation, electric vehicles, energy distribution and industrial heating processes, supporting the company’s OEM customers around the world in transitioning to safer and cleaner forms of energy.
As a technology pioneer and innovator, building on a foundation of over one hundred years of experience, Kendrion is driven by a desire to explore creative solutions for the engineering challenges of tomorrow. The company takes broad responsibility for how they source, manufacture, and conduct business. Sustainable business practices are integrated in the company’s processes and embedded in their culture. Rooted in Germany, headquartered in the Netherlands, and listed on the Amsterdam stock exchange, the company’s footprint extends across Europe to the Americas and Asia.
In today’s rapidly evolving business landscape, harnessing the power of Artificial Intelligence is no longer a luxury but a necessity. At Atar Capital, we are thrilled to announce the latest addition to Keypoint Intelligence’s portfolio: Artificial Intelligence in Document Services. This cutting-edge offering is designed to equip businesses with the insights and strategies needed to thrive in the AI-driven era.
With over six decades of expertise in the print and document management space, Keypoint Intelligence is your trusted partner for navigating the complexities of AI integration. Their newly launched AI advisory service is tailored to provide comprehensive competitive analysis and strategic guidance, enabling organizations to unlock the full potential of AI in their operations.
At the core of their offering is a commitment to empowering businesses with actionable insights and recommendations for leveraging AI. Through in-depth research and analysis, they identify key AI functionalities in demand and advise on their integration into managed print services, document management systems, and other market solutions. Their goal is to help businesses accelerate document processing, improve infrastructure efficiency, enhance customer satisfaction, and drive revenue growth through AI-powered offerings.
Additionally, their partnership with Gowest.ai further strengthens their commitment to enable clients to harness the full potential of AI with confidence. Together, they offer comprehensive AI readiness assessments designed to help businesses understand where AI can streamline their workflows and drive ROI.
At Atar Capital, we understand the pivotal role that AI plays in shaping the future of business operations. With Keypoint Intelligence’s AI in Document Services, you can harness the power of AI to unlock new opportunities, drive innovation, and stay ahead in today’s competitive landscape. Join us in embracing the future of AI-powered solutions.
Global private investment firm will leverage Crowell’s legal, taxation expertise to support its best-in-class transaction due diligence and operations
LOS ANGELES, CA – Atar Capital is pleased to announce that Brett Crowell has joined the team as a Director. Brett will play a pivotal role in enhancing the firm’s financial and commercial due diligence processes and will enable Atar Capital to seamlessly cover all aspects of transacting and managing its portfolio companies.
Brett brings a wealth of experience to Atar Capital, having co-led the M&A tax practice at GHJ, where he advised on both buy-side and sell-side domestic and cross-border transactions. At GHJ, Brett not only demonstrated his prowess in the M&A realm but also led a practice that introduced innovative client services and provided essential internal tax support.
“Having Brett’s expertise as an attorney, taxation expert and transactional counsel will enable Atar Capital to conduct deals with speed and certainty as well as having all the major disciplinaries in house for managing our portfolio companies,” said Cyrus Nikou, Founder and Managing Partner at Atar Capital. “We look forward to the impactful contributions Brett will undoubtedly make to Atar Capital’s continued success and growth.”
Brett began his career at Armanino LLP, where he served as a law firm management consultant before transitioning into a federal estate, gift, and trust tax specialist role. Brett is a licensed attorney in the State of California, with a J.D. and LL.M. in taxation from the University of San Diego School of Law and a B.A. from the University of California, Santa Barbara.
About Atar Capital
Atar Capital is a global private investment firm that benefits from 80 years of combined buy-out, investing and portfolio company management experience. The firm’s principals have collectively completed over 90 private equity transactions across eighteen countries worldwide. Atar Capital specializes in complex carve-outs, corporate divestitures and turnarounds of high-potential businesses and is a collaborative partner to sustainable and purpose-driven companies that can make a valuable and positive impact on the world. Headquartered in Los Angeles, Atar Capital’s best-in-class business development, M&A and operations capabilities enable its portfolio companies to unlock their full potential. For more information, visit www.atarcapital.com.
LOS ANGELES, CA – Atar Capital today announced the promotion of Ammar Misto to Vice President. In his new role, Misto will take on an expanded role with the firm, which serves as a testament to his exceptional skills and contributions to the firm.
As Vice President, Misto will lead internal operations for the business development team and continue to play a key role in supporting the daily activities of the firm. He will also provide strategic counsel to the senior leadership team regarding deal origination, evaluation, and qualification for new acquisition opportunities.
“As we continue to navigate the evolving investment landscape, Ammar will play a pivotal role in shaping the future of Atar Capital. We are confident in his ability to foster growth initiatives to ensure that we remain at the forefront of strategic business development,” said Cyrus Nikou, Founder and Managing Partner at Atar Capital. “Ammar’s dedication to excellence will undoubtedly help in accelerating Atar’s overall business goals.”
Previously, Misto served as Associate and Senior Associate at Atar Capital. Prior to joining the firm, Misto held positions at Avitas Wealth Management, spearheading the raise of the firm’s inaugural fund of funds and Harvey & Company, where he focused on buy-side mandates across the Industrial sector. Ammar holds a B.A. in Economics and Organizational Studies from Pitzer College, a member of the Claremont Colleges.
About Atar Capital
Atar Capital is a global private investment firm that benefits from 80 years of combined buy-out, investing and portfolio company management experience. The firm’s principals have collectively completed over 90 private equity transactions across eighteen countries worldwide.
Atar Capital invests in both performing and underperforming lower middle market businesses that exhibit potential for revitalization, operational performance improvement, and growth. The firm specializes in corporate divestitures, complex carve-outs, and turn-around situations across a wide range of industries and geographic markets, with a focus on North America and Western Europe.
Headquartered in Los Angeles, Atar Capital’s best-in-class business development, M&A and operations capabilities enable its portfolio companies to unlock their full potential. For more information, visit www.atarcapital.com.
Cyrus and Maryam Nikou Cut Ribbon During Dec. 21 Field Grand Re-Opening
LOS ANGELES, CA – When Atar Capital Founder and CEO Cyrus Nikou and his wife Maryam see an opportunity to contribute to causes close to their hearts, they jump at the chance. The latest example of the couple’s generosity was witnessed at a Dec. 21, 2023 ribbon cutting at Sierra Canyon School, where the Lower School celebrated the grand re-opening of the newly refurbished Nikou Family Field.
“The word ‘philanthropy’ comes from two Greek words – philein, meaning to love, and anthropos, meaning humankind,” said Jim Skrumbis, Head of School, Sierra Canyon School. “The generosity of the Nikou family will have a lasting impact on our community, providing a space for our students to play, learn and thrive for generations to come.”
The Nikou family’s donation helped to refurbish one of the school’s primary sports fields which will enjoyed by Pre-K-12th Grade students. The ribbon-cutting event also included the grand opening of the Lower School’s new state-of-the-art Multipurpose Gymnasium.
“There was an opportunity to contribute in a very meaningful way at the school and we took the opportunity to impact the school’s community for generations to come,” said Cyrus Nikou, a member of the Board of Trustees since 2021.
Sierra Canyon School is a private, independent, non-sectarian, co-educational, college preparatory school for students in grades Pre-Kindergarten through 12 located in Chatsworth, California.
About Atar Capital
Atar Capital is a global private investment firm that benefits from 80 years of combined buy-out, investing and portfolio company management experience. The firm’s principals have collectively completed over 90 private equity transactions across eighteen countries worldwide.
Atar Capital invests in both performing and underperforming lower middle market businesses that exhibit potential for revitalization, operational performance improvement, and growth. The firm specializes in corporate divestitures, complex carve-outs, and turn-around situations across a wide range of industries and geographic markets, with a focus on North America and Western Europe.
Headquartered in Los Angeles, Atar Capital’s best-in-class business development, M&A and operations capabilities enable its portfolio companies to unlock their full potential. For more information, visit www.atarcapital.com.
Eliminating enough plastic straws from the planet to reach halfway to the moon, phade® manufacturer WinCup, Inc. aims to get all the way there and beyond in its battle against plastic pollution
STONE MOUNTAIN, Ga. (March. 16, 2023) – The planet is free from 1 billion petroleum-based plastic straws thanks to being replaced by phade®, the world’s first marine biodegradable, home and industrial compostable drinking straw. WinCup Inc., phade’s® manufacturer, announced today that the company has sold 1 billion phade® straws, enough to reach halfway to the moon if lined up end to end. With customers’ help, the company now aspires to “reach the moon” and beyond as it works to replace billions of traditional plastic straws.
“JFK famously said that NASA accepted the mission to reach the moon not because it was easy but because it was hard,” said Michael Winters, WinCup President, and Chief Revenue Officer. “The same can be said for our commitment to develop phade® as the most sustainable alternative to traditional plastic straws. The planet is facing a serious crisis with plastic pollution and consumers around the world expect manufacturers to provide meaningful sustainable solutions. phade® is the solution that can help to minimize plastic pollution in the straw category.”
Made with PHA (polyhydroxyalkanoate), a meaningful new biopolymer derived from the fermentation of canola oil, phade® straws maintain the feel and user experience of traditional plastic straws but will safely biodegrade and return to nature quickly. phade® has become popular among consumers as well as major restaurant and hospitality brands, professional sports venues, airports, and other retail outlets nationwide.
The development of phade® involved a rigorous testing and certification process. TÜV AUSTRIA, a globally recognized independent third-party certifying body, certified phade® as both industrial and home compostable in a matter of months. TÜV also certified the material from which the phade® straw is made as marine biodegradable. Additionally, the Biodegradable Products Institute Inc. (BPI) has certified phade® as industrial compostable.
“Unlike with petroleum-based straws – which take hundreds of years to biodegrade – phade® straws generally biodegrade in a matter of months in environments where bacteria are present and can use PHA as a food source,” explained Brad Laporte, WinCup’s Chief Executive Officer. “That means to date a billion phade® straws have been manufactured and have either safely returned to nature or will in a matter of months rather than polluting the environment for centuries. Solutions like phade® have emerged as a vital weapon in the fight against plastic pollution, and we at WinCup have only just begun.”
WinCup, a leader in food service products manufacturing, has won numerous awards for the development of phade®, including the 2020 Innovation in Biopolymer Award from the Plastics Industry Association, and the 2021 Innovation in Foodservice Award for Sustainability Solutions from the National Restaurant Association. phade® was also recognized as a finalist or honorable mention in 4 out of 5 categories in Fast Company’s 2021 World Changing Ideas Awards.
WinCup’s focus on sustainable solutions was bolstered in September 2020 when Los Angeles-based global private investment firm Atar Capital acquired the company. Among Atar’s core principles is a commitment to sustainability and investing in companies that work toward protecting the environment.
About WinCup, Inc. and phade®
WinCup, Inc. is headquartered in Stone Mountain, Georgia, and is a leading manufacturer of traditional and Eco-Friendly disposable cups, bowls, containers, lids, and straws. The company’s eight manufacturing locations are committed to high-quality products and superior customer service. To learn more, please visit www.wincup.com and www.phadeproducts.com.
Our founder and managing partner, Cyrus Nikou has been highlighted as a top “Leader of Influence” by the LA Business Journal, as well as receiving the honor of being one of the 500 most influential people in all of Los Angeles, also by the LA Business Journal.
The LA Business Journal is a highly respected publication in the business world. So much so that earlier this month, they received a Silver award for Best Newspaper at a nationwide, independently-judged journalism competition.
We are honored to have our very own Cyrus Nikou highlighted in these ways, as it gives vindication and public exposure to our holistic growth as a firm since opening our doors in 2016.
We can’t wait for what the future holds for Atar, and we are lucky to be led by one of the best in the business.
Water Valley, Mississippi – Feb. 8, 2022 – BorgWarner’s North American Controls business, acquired by Atar Capital on December 31, 2021, has been renamed Solero Technologies, effective immediately. The business is a leading global supplier of transmission solenoids, engine solenoids, stop-start accumulators, and hydraulic control modules. The Water Valley, Mississippi manufacturing site, along with related sales and engineering operations in Detroit, will now operate under the Solero Technologies corporate identity, a name inspired by the company’s products and innovative solutions for a cleaner environment.
Earlier today, the new name was revealed to employees and local dignitaries in a ceremony at the Water Valley facility. Board Director and Interim CEO Ramzi Hermiz and Atar Capital Founder and Managing Partner Cyrus Nikou spoke about the new name and its meaning, and the future vision for the company.
“The Solero Technologies name is inspired by our iconic product. Together, the name and brand reinforce the energy and collaboration that Solero Technologies brings to all we do,” said Hermiz. “The logo’s interlocking rings honor the solenoid’s coils and highlight the importance of our communities and partnerships.”
In developing the new name, the Atar Capital team brought together a broad cross-functional team from both Water Valley and Detroit to provide input on the company’s heritage, core values, current market position and future vision. The Water Valley facility has served the automotive industry for more than 50 years, starting as a Ram Tool Plant, later purchased by Holley Carburetor Company. The facility was acquired by BorgWarner in 1996.
“Our new operations, independent of BorgWarner, allow us to have a singular focus on growing our solenoid business across existing and new markets,” added Hermiz. “Our customers trust in our highly-skilled team members to provide solenoid solutions for their complex design challenges. We work in partnership with these customers to achieve the highest level of efficiency and product performance.”
Atar Capital is a Los Angeles-based global private investment firm that prioritizes companies that are socially and environmentally conscious.
“Solero Technologies primarily serves the automotive industry today. Our products and technologies will benefit other systems to operate smoother and more efficiently, expanding the impact of our core offerings, in the future,” said Nikou. “We look forward to exploring opportunities for our products with electric vehicles, commercial vehicles, industrial applications and other applications related to fluid flow control.”
Solero Technologies employs more than 450 individuals in both Water Valley and Detroit. It is the largest employer in Mississippi’s Yalobusha County, where the Water Valley facility resides.
“The Water Valley community has a strong and talented workforce. The work ethic of the community has allowed for continued transformation of the business, and we look forward to continuing to build upon the facility’s strong reputation,” said Hermiz.
Solero Technologies plans to continue its Water Valley facility’s involvement with the local community through a variety of philanthropic donations and activities supporting local schools, veterans and underprivileged individuals.
About Solero Technologies Solero Technologies is a leading global supplier of transmission solenoids, engine solenoids, stop-start accumulators, and hydraulic control modules. Our capabilities include advanced design, prototyping, development and manufacturing combined with a strong intellectual property portfolio across product categories. We have built an acclaimed reputation for developing and delivering quality solenoid products to automotive OEMs, the aftermarket and other industrial sectors. Our industry-leading solenoid products are critical to the optimal performance of vehicles today and tomorrow. The company operates from its manufacturing facility in Water Valley, Mississippi, along with related sales and engineering operations in Detroit. Visit www.solerotechnologies.com for more information.
About Atar Capital Atar Capital is a global private investment firm that acquires a wide range of lower middle market businesses exhibiting opportunities for growth, revitalization and significant value creation. Atar Capital’s principals have completed more than eighty-five private equity transactions across North America, Europe and South America.
Atar Capital’s combination of operational expertise, industry knowledge and investment experience provide a unique edge in creating value and working as a true partner with its portfolio companies. The firm assists in activities ranging from growing the business to improving operations and financial performance, leveraging all available resources and talent within Atar’s leadership team, as well as its bench of seasoned senior advisors with deep sector and functional expertise. For more information, please visit www.atarcapital.com.
CEO: Acquisition Will Bring Stabilization And Transformation
WATER VALLEY – A Los Angeles-based global private investment firm has purchased the BorgWarner plant in Water Valley and related operations. ATAR Capital announced in a press release on Jan. 6 that it had completed a carveout acquisition of BorgWarner’s North American Controls business, a wholly-owned and operated division of BorgWarner. The transaction was completed on December 31, 2021.
The acquisition includes the Water Valley manufacturing site along with related sales and engineering operations in Detroit, Mich. The business is a leading supplier of transmission solenoids, engine solenoids, start-stop accumulators, and hydraulic control modules throughout North America. The news first circulated in the community on Jan 4 as ATAR Capital’s leadership team meet with workers on all three shifts at the Water Valley plant. “The leadership team with ATAR was right here last week when we were announcing it,” reported interim CEO Ramzi Hermiz. “Cyrus Nikou, the founder of ATAR Capital, was here communicating with workers on all three shifts”.
BorgWarner announced the sale as part of the company’s accelerated electrification strategy expected to bring the company’s electric vehicle revenue from less than three percent of total revenue in 2021 to approximately 45 percent in 2030. Also outlined in this strategy by BorgWarner is a target to dispose of $3 billion to $4 billion in annual revenues from its internal combustion engine portfolio by 2025, with approximately $1 billion of that targeted to be executed by late 2022. BorgWarner’s new strategy created an opportunity for ATAR Capital, Hermiz explained in an interview with the Herald Monday afternoon.
“When we looked at what is happening in Water Valley, we see a business that is performing very well. It has a strong and talented workforce, has success in the market, and has a strong reputation,” Hermiz reported. The interim CEO noted that the products produced in Water Valley make an internal combustion engine more efficient, greener, and better for the environment. “We see the ability to expand,” Hermiz added.
The focus of the expansion includes both increasing the company’s market share of products already in production at the plant and developing future technology for engines and high-speed transmissions that will increase the fuel efficiency of internal combustion engines. “But also if you look at electric vehicles (EV), there are applications of controlling fluid flow. Maybe not an automatic transmission, but there is battery cooling and other activities – we still feel that this product has a life and opportunity,” Hermiz explained about current production. “We talk about going to an EV environment, and we will, but there are also hybrid electrics. There are all these other versions of electrifications.”
Transforming the Company
Hermiz shared ATAR Capital is not approaching the management of the plant as a major restructuring initiative, and instead, the goal is to transform it into a higher growth company. “Frankly under the prior ownership, the business wasn’t being invested in. They had it in a decline, which is partly why they wanted to exit. But we see it as an opportunity for growth,” he reiterated. The CEO also cautioned that the company is not immune to the current challenges in the automotive industry with supply chain interruptions, commodity price increases, and the global chip shortage that impacts the overall volume of vehicles produced. “I would say we are sized for what the market will be and continue to go on that path,” he added about the current workforce.
With the acquisition, ATAR purchased existing contracts serving blue-chip automotive and commercial vehicle OEMs (original equipment manufacturer) including Cummings Engine, Ford Motor Company, General Motors, and Stellantis. Hermiz also provided insight about the lag time between quoting applications for new businesses and production. “We will quote something this year, but not go into production for a couple of years. There is a valley you have to go through to come out on the other end. But that being said, we are going to look for opportunistic growth opportunities. We are primarily automotive, but we believe there are still more opportunities in commercial vehicles and industrial applications, even water vehicles,” Hermiz added.
LOS ANGELES — January 6, 2022 — Atar Capital, a Los Angeles-based global private investment firm, announced today it has completed the carve-out acquisition of BorgWarner’s North American Controls (BWNAC) business, a wholly owned and operated division of BorgWarner (NYSE: BWA). Headquartered in Detroit, Michigan, with manufacturing located in Water Valley, Mississippi, the business is a leading supplier of transmission solenoids, engine solenoids, stop-start accumulators and hydraulic control modules throughout North America.
Cyrus Nikou, founder and managing partner of Atar Capital, said, “Atar is excited to complete this carve- out with BorgWarner and acquire such an impressive world-class operation. As a standalone company, BWNAC will focus on a growth and diversification strategy, leveraging its market-leading position serving blue-chip automotive and commercial vehicle OEMs, such as Cummins Engine, Ford Motor Company, General Motors and Stellantis.”
Through this acquisition, Atar Capital confirms the appointment of automotive industry veteran, Ramzi Hermiz, as a Board Member of BWNAC and interim CEO, while the search for a permanent CEO is conducted. Hermiz was formerly a Board Member and CEO of Shiloh Industries and held several executive and C-level positions during his 22 years at Federal-Mogul Corporation.
“Atar Capital could not be more excited about the opportunities that lie ahead for the new company,” said Vijay Mony, managing director at Atar Capital. “We welcome Ramzi as a Board Member and thank him for stepping in as the interim CEO, leading the transition of BWNAC to a standalone company. We believe combining an experienced leader like Ramzi with the engineering and manufacturing expertise of BWNAC will help create new opportunities and further the company’s leadership position in the market.”
Atar’s investment team for the transaction included Founder and Managing Partner Cyrus Nikou, Senior Managing Director Robert Lezec, Managing Directors Stanley Huang and Vijay Mony, Director T.J. McCaffrey and Vice President Roman Zelinsky. Dykema provided legal counsel, Ducker International provided market analysis and BDO supplied quality earnings, information technology and general operations transaction support.
About Atar Capital Atar Capital is a global private investment firm that acquires a wide range of lower middle market businesses exhibiting opportunities for growth, revitalization and significant value creation. Atar Capital’s principals have completed more than eighty-five private equity transactions across North America, Europe and South America.
Atar Capital’s combination of operational expertise, industry knowledge and investment experience provide a unique edge in creating value and working as a true partner with its portfolio companies. The firm assists in activities ranging from growing the business to improving operations and financial performance, leveraging all available resources and talent within Atar’s leadership team, as well as its bench of seasoned senior advisors with deep sector and functional expertise. For more information, please visit www.atarcapital.com
