Prophet Equity LP Acquires Market Leading Automotive Platform
January 15, 2013 – Prophet Equity LP announced today that it has acquired Hatch Stamping Company (“Hatch”) out of Chelsea, MI. Under the terms of the transaction, Ron Hatch, former majority owner and CEO of Hatch, Dan Craig, Hatch President, and Chris Parrott, Hatch CFO, will have significant roles and ownership in the company going forward.
“I could not be more pleased with the outcome of this transaction,” said Ron Hatch. “After many years of supporting Hatch’s geographic, production capability, and end market growth, I am excited to partner with the management team and Prophet Equity to continue our mission of manufacturing excellence and to capitalize on the growth opportunities afforded to Hatch.”
“Over the past 60 years, Ron Hatch, Ron’s father, and the current management team have built Hatch into a great asset in the global automotive industry,” commented Ross Gatlin, Prophet Equity’s CEO and Managing Partner. “With highly automated manufacturing and assembly capabilities in Michigan and Queretaro, Mexico and parts on most platforms manufactured in North America, Hatch has unique strategic strength and significant value creation opportunities.”
“We are excited to support the management team and Mr. Hatch in the company’s growth,” said Charles Collie, Senior Executive Director of Prophet Equity. “With years of operational and strategic acumen in the automotive industry, Prophet Equity will be a collaborative partner to help the company explore and evaluate opportunities to create additional value.”
Collie also remarked, “Not only are we excited about our partnership with Ron Hatch and the management team, but we are also excited about our unique, long term financing partnerships that provided leverage for the acquisition and liquidity to support the future growth of the company.”
About Hatch Stamping
Headquartered in Chelsea, Michigan, Hatch is a leading manufacturer of complex metal stampings and assemblies to the automotive industry. The company supplies the world’s leading manufacturers of fuel, braking, roofing, and interior automotive systems with complex safety critical metal components and mechanisms through its six manufacturing centers of excellence, including a state of the art facility in Queretaro, Mexico. Hatch provides a broad spectrum of value-added capabilities, including robotic welding and subcomponent assembly, e-coating, in-line vision inspection and error detection, prototype design and construction, and full tool and die-build and repair. Combining the most advanced and efficient automation, production, and secondary operation equipment with in-house engineering resources, Hatch has established itself as a trusted manufacturing partner to a marquee and global customer base of Tier 1 automotive suppliers. www.hatchstamping.com
About Prophet Equity LP
Prophet Equity is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. Partnering with owners and management teams, our team of experts utilize a toolkit that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance.
Over the last decade alone, our Principals have invested and managed approximately $300 million of control equity in entities with over $2.5 billion in revenue. Our control equity investments focus on lower and middle market companies with strategically strong businesses with significant value creation potential, such as those found in partnerships, corporate carve-outs, divestitures and non-strategic businesses of larger companies. Representative business situations include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, mergers and bankruptcies. For more information on Prophet Equity or to discuss seeing future value in your situation today, please contact us at 817.898.1500 or visit www.prophetequity.com.
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