Los Angeles, May 31, 2022 – Palm Tree LLC is pleased to announce that its wholly-owned subsidiary and registered broker-dealer, Palm Tree Securities LLC, served as the exclusive financial advisor to Detroit Manufacturing Systems, a Tier 1 automotive supplier, in securing a $185 million credit facility from Wells Fargo Capital Finance. The credit facility includes a $125 million revolving line of credit, a $10 million delayed draw term loan, and a $50 million accordion feature.
Detroit Manufacturing Systems (“DMS”) is a Tier 1 manufacturer, assembler, and supplier of automotive interior components, including but not limited to automotive cockpits, micro-pits, and center consoles. DMS also offers end-to-end services such as full instrument panel module assembly, supply chain management, logistics, inventory and warehousing, injection molding, and related finishing services.
The Company’s blue-chip customer base includes Ford Motor Company, Stellantis, Volvo Heavy Truck, and other Tier 1 automotive suppliers such as Forvia. Since its founding in 2012, DMS has supported 37 unique vehicle programs for 15 nameplates, including the highly coveted Ford F-150.
“This transaction will enable DMS to maintain its growth trajectory, give back to the community, and continue changing lives across the Southeast Michigan area,” said Scott Cieslak, Chief Financial Officer of Detroit Manufacturing Systems. “The DMS management team is very pleased with the Company’s new partnership with Wells Fargo. The support and experience of the Palm Tree team was instrumental in navigating the unique challenges of our current economic environment, and the team delivered a positive outcome for all parties involved.”
“This transaction underscores how Palm Tree brings our consulting and investment banking services together to deliver a fantastic outcome,” said Stephen Rossi, Managing Director and Co-founder of Investment Banking at Palm Tree. “The new credit facility will provide DMS with substantially more liquidity with which to operate the business both in the immediate term and into the future. It was truly a pleasure working with the DMS team, and we look forward to continuing to assist the Company in accomplishing its strategic and financial objectives.”
Palm Tree is the modern M&A Advisor. A hybrid of consulting, accounting advisory, and investment banking, it provides clients with comprehensive financial, transactional, and operational solutions. Born out of private equity, Palm Tree navigates the time-sensitive, demanding, and uncompromising rigors of M&A from the perspective of owners and investors. This gives its clients the advantage of experience and expertise across the full continuum of transactions, transitions, and transformations. Since its inception in 2010, Palm Tree collectively has advised on more than 300 transactions totaling more than $45 billion in value. Securities products and services are offered through Palm Tree Securities LLC, member FINRA, SIPC.
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