Released on November 6, 2007

Monomoy Capital Partners L.P., New York, announced it has acquired Alcoa Automotive Castings (AAC) from Alcoa Inc., Pittsburgh, for an undisclosed amount.

The private equity fund adds AAC to a list of holdings that includes two other metalcasters, Castings Technologies Co., Franklin, Ind., a squeeze cast manufacturer of aluminum auto parts, and Magnesium Aluminum Corp., Cleveland, a diecast manufacturer of engineered aluminum and magnesium components.

Alcoa announced that it was nearing a definitive deal to sell its automotive castings unit on Oct. 5. The aluminum giant first indicated that it was interested in selling the unit in late April, when it said it would “explore strategic alternatives” involving both its automotive castings and electronics units. Those two units produced a combined $1.6 billion in 2006 and were marginally profitable, according to a press release issued by Alcoa.

Monomoy in the past has made controlling investments in middle market companies that require operational or financial restructuring. The firm said in a press release it targets fundamentally sound businesses with revenues less than $200 million and acquires businesses through bankruptcy, out-of-court restructurings, corporate divestitures and other transactions. The fund has completed 12 transactions over the past 26 months in the smaller end of the middle market.

The firm’s newest acquisition, AAC, manufactures suspension and chassis components, including sub-frames, cradles, steering knuckles, engine brackets and control arms, through a proprietary low-pressure casting technology at facilities in Michigan, Norway and China. According to a statement issued by Monomoy, the equity group will merge AAC into Compass Automotive Group LLC, Detroit, a Monomoy portfolio company and provider of aluminum and magnesium components to car makers and automotive suppliers. With the addition of AAC, Compass becomes a $220 million manufacturer.

“Alcoa Automotive Castings is a proven market leader with leading technology, well-regarded products and a strong industry position,” said Craig Conaty, chief executive officer of Compass. “Compass’ acquisition of AAC is an important part of our strategy to consolidate Tier II automotive suppliers and enables us to offer a full range of cost-effective, safety-critical component solutions to Tier I suppliers throughout the world.”