Antares loan funds AC parts company acquisition

The CPPIB affiliate has provided a $77m facility to support AEA Investors’ purchase of a Texas-based automotive air conditioning parts company.  

Antares Capital has helped bankroll a New York-based private equity firm's purchase of an automobile air conditioning parts company.

The firm announced Friday it acted as administrative agent and joint lead arranger on a $76.7 million senior secured credit facility extended to AEA Investors to support its acquisition of Omega Acquisition Corporation.

AEA bought Omega in late August from River & Associates, a Tennessee-based private equity firm, according to , an automotive industry news site. The report said that the entity acquired by AEA consists of three units: Omega Environmental Technologies, Global Parts Distributors and Santech.

“Omega is a market leader with strong growth potential and a solid management team. We look forward to supporting AEA and Omega management as they continue to execute upon their growth strategy, both domestically and overseas,” Antares managing director Graham Manley said in the statement. 

AEA and Antares representatives declined to comment. Omega and River & Associates representatives did not return requests for comment by press time.

Omega provides climate control components that are used in a variety of agricultural and industrial vehicles. Based in Irving, Texas, the company also offers technical support, market and merchandising services and has customers in more than 86 countries. Omega Environmental Technologies offers air conditioning products for heavy-duty, off-road and agricultural vehicles; Global Parts Distributors provides air conditioning and engine cooling products while Santech specialises in air conditioning small parts.

AEA is a private investment vehicle for a group of family offices founded in 1968 by the Rockefeller, Mellon and Harriman families. Funds managed by the firm have approximately $10 billion in invested and committed capital that is used to finance mid-market buyouts and acquisitions, as well as mezzanine and senior debt investments. AEA's private equity unit invests in industrial products, specialty chemicals and retail services. 

Antares Capital is a CPPIB-owned mid-market lending firm that provides financing for private equity backed transactions involving companies with EBITDA of between $7 million and $125 million. Including leverage, the firm has about $11 billion in capital under management.