Cerberus Capital’s ABC Technologies files $225M IPO by way of secondary offering

CPE News (1/26/2021) – ABC Technologies Holdings Inc. has filed a preliminary long-form prospectus for a proposed initial public offering (IPO) by way of a secondary offering of common shares of ABC Technologies by ABC Group Canada LP, which is directly and indirectly owned by an investment fund managed by Cerberus Capital Management, L.P.

The number of common shares to be sold and the price per common share have not yet been determined.

ABC Technologies expect to offer shares at an offering price of CDN $12.00 to CDN $15.00 for aggregate gross proceeds to the selling shareholder of CDN $255,000,000 or up to CDN $293,250,000 if the over-allotment option is exercise in full (all dollar figures in Canadian dollar).

Upon completion of the offering, ABC Technologies Holdings will have 52,522,392 common shares will be issued and outstanding, valuing the company at between $630 million – $788 million at the proposed offering price range.

ABC Technologies has applied to list its common shares on the Toronto Stock Exchange (TSX) under the symbol “ABCT”.

The offering is being made through a syndicate of underwriters led by Scotia Capital Inc., as lead underwriter, BMO Nesbitt Burns Inc. and J.P. Morgan Securities Canada Inc joint active bookrunners.

Founded in 1974, Toronto based ABC Technologies is a leading manufacturer and supplier of custom, highly engineered, technical plastics and lightweighting innovations to the North American light vehicle industry, serving more than 25 original equipment manufacturer (OEM) customers globally through a strategically located footprint.

ABC operations are comprised of 28 strategically located manufacturing facilities, including two in-house facilities and eight manufacturing facilities owned by its joint ventures. The company has a team of approximately 7,600 employees, approximately 6,150 of which are employed directly by ABC, with the balance employed by joint ventures.

In 2016, Cerberus Capital acquired ABC Technologies (formerly ABC Group) from Schmidt family, Ben Elgner and Steve Kovacs.

photo credit: ABC Technologies

News Release

ABC Technologies Holdings Inc. Files Preliminary Prospectus for Initial Public Offering of Common Shares

Not for distribution to U.S. news wire services or dissemination in the United States

January 26, 2021 02:04 PM Eastern Standard Time

TORONTO–(BUSINESS WIRE)–ABC Technologies Holdings Inc. (“ABC Technologies” or the “Company”) announced today that it has filed with the securities regulatory authorities in each of the provinces and territories in Canada, and obtained a receipt for, a preliminary long-form prospectus (the “Preliminary Prospectus”) for a proposed initial public offering of common shares (the “Offering”). The Offering contemplates an offering of common shares of ABC Technologies by ABC Group Canada LP, which is directly and indirectly owned by an investment fund managed by Cerberus Capital Management, L.P. The number of common shares to be sold and the price per common share have not yet been determined.

The Offering is being made through a syndicate of underwriters led by Scotiabank, BMO Capital Markets and J.P. Morgan as lead underwriters.

The Preliminary Prospectus contains important information relating to the Offering and has not yet become final for purposes of a distribution of securities to the public. No securities regulatory authority has either approved or disapproved the contents of this news release. This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any province or territory of Canada prior to the time of receipt for the final prospectus or other authorization is obtained from the securities regulatory authority in such province or territory. Copies of the Preliminary Prospectus may be obtained from any of the Underwriters and will be available under ABC Technologies’ profile on SEDAR at www.sedar.com.

The securities under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account of benefit of, U.S. Persons (as such term is defined in Regulation S under the U.S. Securities Act), except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or solicitation of an offer to buy any of these securities in any jurisdiction in which the offering or sale is not permitted.

About ABC Technologies

ABC Technologies is a leading manufacturer and supplier of custom, highly engineered, technical plastics and lightweighting innovations to the North American light vehicle industry, serving more than 25 original equipment manufacturer (“OEM”) customers globally through a strategically located footprint. ABC Technologies’ integrated service offering includes manufacturing, design, engineering, material compounding, machine, tooling and equipment building that are supported by an experienced engineering team of approximately 600 skilled professionals and 6,150 employees worldwide. The Company operates in six product groups: HVAC Systems, Interior Systems, Exterior Systems, Fluid Management, Air Induction Systems and Flexible & Other.

Forward-Looking Statements

This news release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control. Such risks and uncertainties include, but are not limited to, failure to complete the Offering and the factors discussed under “Risk Factors” in the Preliminary Prospectus. Actual results could differ materially from those projected herein. ABC Technologies does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.

Contacts

Nathan Barton
Investor Relations
investors@abctech.com