• Global carve-out of the leading power transmission system supplier to Commercial & Off-Highway and Light-Vehicle OEMs
• Quality, customer service and technological know-how drive market position
• More than USD 450m in revenue, order book above USD 2bn
• Footprint in North America, Europe and Asia

New York/London/Luxembourg, May 2, 2024 – AURELIUS Private Equity Mid-Market Buyout announces the acquisition of Dayco Propulsion Solutions from Dayco Group, a company backed by financial sponsor Hidden Harbor Capital Partners. The transaction emphasises AURELIUS´ growing focus on North America. Dayco Propulsion Solutions is the leading power transmission system supplier to Commercial Vehicle & Off-Highway (CVOH) and Light Vehicle (LV) Original Equipment Manufacturers (OEMs). The company specialises in manufacturing propulsion systems which manage the belt power transmission system of CVOHs and LVs. Its products are sold to OEMs as well as related aftermarkets.

AURELIUS´ expertise for operational transformation offers Dayco Propulsion Solutions the option to leverage its market-leading position in hybrid systems, helping the company to enter a new phase of profitable growth. With its deployment, the AURELIUS Operational Task Force will advise the management team in unlocking new opportunities and further expanding the business´ position.

Following in the footsteps of the acquisition of LSG Sky Chefs, this marks another transaction with significant US operations, once more confirming AURELIUS’ commitment to the region. With Dayco Propulsion Solutions, AURELIUS Investment Advisory has identified yet another company that had become non-core to its owner, but offers ample operational improvement potential. While countries across the world are imposing ever tighter restrictions on harmful emissions, AURELIUS is convinced that the company´s best-in-class hybrid vehicle solutions can play a key role in solving these industry challenges.

“Dayco Propulsion Solutions underlines our growing focus on North America. We are grateful to be chosen as a trusted partner by Dayco and its shareholder, financial sponsor Hidden Harbor Capital Partners. Looking ahead, we aim to build on the company’s strong positioning in its sector and to drive further growth”, commented Fabian Steger, Managing Director at AURELIUS European Opportunities IV.

With eight manufacturing facilities across the globe, Dayco Propulsion Solutions operates on a global scale and serves as a trusted partner to a range of LV-OEMs, including some of the leading LV & CVOH OEMs in North America. A strong order book in the CVOH segment, bolstered by its close customer relationships and growing portfolio in the hybridized vehicle space, affirms its leading market position and testifies to its significant growth potential.

AURELIUS was advised by Woodward Park Partners (M&A), Berylls (Commercial), BakerMcKenzie (Legal), Deloitte (Accounting), AON (Insurance), HaverMailänder (Anti-trust) and EY (Tax).