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12.05.2006

Monomoy Capital Partners acquires Rossborough Supply Company
Firm completes second acquisition of a specialty automotive components manufacturer

New York, New York...Monomoy Capital Partners, L.P., a New York private equity fund, announced today that it has acquired and recapitalized Rossborough Supply Company, Inc. ("Rossborough"), a niche manufacturer of magnesium and aluminum auto parts based in Cleveland, Ohio, Albany, Oregon and Matamoros, Mexico. Financial terms of the transaction, which closed today, were not disclosed.

Rossborough operates two businesses: Magnesium Aluminum Corporation, a leading manufacturer of aluminum and magnesium steering wheels, steering columns, engine brackets and airbag enclosures for both transplant and domestic automakers, and SRC, the dominant North American manufacturer of magnesium flux, a refining agent used in the production of industrial aluminum and magnesium.

Monomoy acquired Rossborough from the Scholtz family, which has owned the company for over 70 years. "This transaction is a terrific development for our customers, suppliers and employees," said David Scholtz. "Rossborough needs strong financial backing to support continued growth in the current automotive environment, and Monomoy has proven to be the perfect partner for both the business and our family."

The Scholtz family will co-invest with Monomoy and continue to own a minority share of the new company. David Scholtz will take over as Chief Executive Officer of Rossborough, and Brad Scholtz will serve as Chief Operating Officer of the company. Chet Scholtz, the current Chief Executive Officer, will retire.

"We are excited to add Rossborough to the growing Monomoy portfolio," said Justin Hillenbrand, a Monomoy principal. "Chet, David and Brad Scholtz have built a strong franchise in an important, safety-critical segment of the auto industry. Monomoy understands the challenges facing Rossborough today, and we will provide the company with the resources necessary to maintain its outstanding record of performance while improving profitability."

Rossborough is Monomoy's second acquisition of a specialty auto parts company, joining Casting Technology Company, a manufacturer of cast aluminum steering knuckles and compressor scrolls acquired in May 2006. "We see significant value opportunities in Tier II auto suppliers that produce highly-engineered, safety-critical components with low labor content," said Mr. Hillenbrand. "These companies are critical to the automotive supply chain, and the best among them will grow and prosper as the industry consolidates."

The acquisition is Monomoy's second in a week, following the purchase of Western Recreational Vehicles, Inc., a manufacturer of high-end recreation vehicles based in Yakima, Wash, on November 28th.

Richard Porter, Kevin Morris and Sean O'Brien of Kirkland & Ellis, L.P. represented Monomoy in the transaction.

About Monomoy Capital Partners, L.P.
Monomoy Capital Partners, L.P. is a private equity fund that makes controlling investments in middle market companies that require operational or financial restructuring. Monomoy targets fundamentally sound businesses with revenues less than $200 million and acquires businesses through bankruptcy, out-of-court restructurings, corporate divestitures, and other complex transactions. Rossborough is Monomoy's seventh acquisition in the smaller end of the middle market over the past 16 months, including four complex acquisitions of family-owned businesses. For additional information, please go to www.mcpfunds.com.

Media contacts
Keil Decker
212.446.1875
Alexander Gordon
212.446.1897
Sloane & Company

 
 
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