TOKYO, JAPAN and SOUTHFIELD, MICHIGAN (April 8, 2008) – Advantage Partners, LLP, (Advantage Partners) an Asia-based private equity firm, today announced that the funds that it services have entered into an agreement to acquire 100% of GST AutoLeather, Inc. (GST), a leading global supplier of automotive leather, from SILLC Holdings, LLC. GST is a premier global provider of leather upholstery for automotive seating and trim and supplies many of the world’s major automotive original equipment manufacturers, including Toyota, Honda, General Motors, Chrysler, Ford, Volkswagen, SAIC, and Nanjing, among others.
GST has provided premium quality automotive leather interiors for the world’s leading automakers and suppliers for more than 70 years. With a global network of sales, customer service, and manufacturing operations in Mexico and China, GST is a market leader in automotive leather in North America, Japan, and China. GST is well regarded for its customer-centric approach, rigorous quality standards, and integrated ability to design, manufacture, and supply top quality automotive leather worldwide.
On announcing the transaction, Dennis Hiller, CEO of GST, said, “It has been a pleasure to work with the senior management team of Advantage Partners. I have been truly impressed with their professionalism and knowledge of our industry. It is evident that Advantage Partners and the management team of GST share the same vision of building the world’s best automotive leather company. Advantage Partners’ resources will allow GST to realize its growth potential, while maintaining its core principle of providing maximum value to our customers.”
Advantage Partners plans to support the company’s market expansion strategies, including its pursuit of the fast growing China automotive market. “We believe GST AutoLeather has significant growth potential in the key markets in which it currently competes, as well as in newer markets such as China and the rest of Asia. We look forward to supporting management in executing its growth strategy globally,” shared Richard L. Folsom, Representative Partner at Advantage Partners. Advantage Partners, which started providing services for the first buy-out fund in Japan in 1997, is known as a hands-on partner to its portfolio companies. Advantage recently opened its first office outside Japan in Hong Kong.
Goldman Sachs Japan Co., Ltd. acted as financial adviser to Advantage Partners. Lazard Freres & Co. LLC acted as financial advisor to SILLC Holdings, LLC.
About GST AutoLeather (www.gstautoleather.com)
GST (www.gstautoleather.com) is headquartered in Southfield, Michigan, and is a proud supplier of some of the world’s finest automotive leather interior trim. GST has operations and strategic alliances in the United States, Mexico, Dominican Republic, South America, and China. Many of the industry’s most prestigious automotive companies turn to GST for its innovation, customer service, quality, and dependability. GST’s engineers and technical experts work hand-in-hand with many of the world’s original equipment and Tier I manufacturers to conceive, design, and develop new generations of leather for the global automotive market. In support of its expansion plans and global growth strategy, GST manages sales operations in various global markets.
About SILLC Holdings, LLC.
SILLC Holdings, LLC is a holding company that was formed in March 2000 to acquire the diversified business segment of U.S. Industries, Inc. The diversified business segment consisted of eleven wholly owned businesses including GST.
About Advantage Partners.
Advantage Partners (www.advantagegroup.co.jp) is a private equity firm founded in 1992. The firm services several funds of an aggregated amount exceeding USD $3.4 billion, with a focus on investing in acquisitions, buy-outs, buy-ins, and other private equity opportunities around the globe. Advantage Partners started providing services for the first buy-out fund in Japan in 1997 and is a pioneer in the private equity industry in Japan. In order to achieve this, Advantage Partners places great importance on supporting operational improvement and strategic planning, based upon extensive business consulting experience. Advantage Partners is based in Tokyo, Japan and recently opened its first international office in Hong Kong.