Pacific Avenue Capital Partners (“Pacific Avenue”), a Los Angeles-based private equity firm focused on corporate carve-outs and other complex transactions in the middle market, is excited to announce the signing of a put option agreement to acquire Sogefi Filtration S.A. and Sogefi USA Inc. (collectively, the “Filtration Business Unit” or the “Company”) from Milan-based Sogefi S.p.A. (“Sogefi”). The Filtration Business Unit is a leading manufacturer of vehicle filtration components and systems serving both the automotive aftermarket and Original Equipment (“OE”) customers globally. The Company operates 11 manufacturing facilities across seven countries (France, United States, India, Slovenia, Italy, Morocco, and the United Kingdom), two main distribution hubs in France and Poland, and two regional distribution hubs in the United Kingdom and Spain. The Company has extensive relationships with leading aftermarket distributors and blue-chip OEMs. In 2023, the Company generated over $600 million of revenue and more than $100 million of adjusted EBITDA.
Under Pacific Avenue’s stewardship, the Company will focus its efforts on meeting the needs of its customers and on executing several growth initiatives tied to its aftermarket business and the long-term transition to electric vehicles.
“We are thrilled about the acquisition of Sogefi’s Filtration Business Unit. With strong OEM and aftermarket businesses, this is a great addition to our growing portfolio. Additionally, due to its investment in R&D and longstanding customer relationships, the Company is well-positioned to support OEMs in the transition to electrical vehicles. Given the significant scale of the business, it will act as an excellent platform to build a global filtration leader through future add-on M&A and organic growth.”
Chris Sznewajs, Founder and Managing Partner of Pacific Avenue
The sale and purchase agreement signing can take place after the France works counsel consultation process is complete and the put option agreement is exercised by Sogefi. The transaction is expected to close in Q2 or early Q3 2024. Upon closing, the Company will operate under the name “Purflux Group.” Julien Grange will remain CEO of the Company.
“The Purflux team is excited to partner with Pacific Avenue to unlock the next phase of growth. We remain committed to delivering best-in-class, high-performance products and service to our world-class customers. We look forward to continuing our legacy of being a leader and innovator in the filtration industry.”
Julien Grange, CEO of Sogefi Filtration
The acquisition of Sogefi Filtration is another example of Pacific Avenue’s ability to partner with corporate sellers, whether international or domestic, to successfully execute complex carve-outs of non-core business units across a wide variety of industries.
“This is an exciting acquisition for Pacific as we continue to expand into Europe. Pacific Avenue has positioned itself as a trusted partner to corporate sellers globally ensuring seamless transitions regardless of transaction complexity.”
Chris Sznewajs, Founder and Managing Partner of Pacific Avenue
Pacific Avenue was advised by Robert W. Baird & Co. Inc., Weil, Gotshal & Manges LLP and Legance – Avvocati Associati. J.P. Morgan Securities acted as the lead arranger for the financing.
Sogefi was advised by Houlihan Lokey, Inc. and Clifford Chance LLP.
About Pacific Avenue Capital Partners
Pacific Avenue Capital Partners is a Los Angeles-based private equity firm focused on corporate divestitures and other complex situations in the middle market. Pacific Avenue has extensive M&A and operations experience, allowing the firm to navigate complex transactions and unlock value through operational improvement, capital investment, and accelerated growth. The members of the Pacific Avenue team have closed 90 transactions, including over 40 corporate divestitures, across a multitude of industries throughout their combined careers. Pacific Avenue takes a collaborative approach in partnering with strong management teams to drive lasting and strategic change while assisting businesses in reaching their full potential. Pacific Avenue has more than $1.2B of Asset Under Management (AUM). For more information, please visit www.pacificavenuecapital.com.
About Sogefi S.p.A.
Sogefi S.p.A. is a Milan-based supplier of original parts for the automotive industry globally. Sogefi designs, develops, and produces filtration systems, flexible suspension components, and air management and cooling systems. Through its strong commitment to research, Sogefi continuously improves its components with technological developments across all product sectors, optimizing performance in terms of life cycle, effectiveness, size, weight, and environmental compatibility. For more information, please visit https://www.sogefigroup.com/en/index.html.
Contact Information:
Chris Baddon
Principal
cbaddon@pacificavenuecapital.com
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SOURCE: Pacific Avenue
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