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Press release content from Business Wire. The AP news staff was not involved in its creation.
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Press release content from Business Wire. The AP news staff was not involved in its creation.

Arctaris Invests $22M in Recaro Automotive, Michigan-based Opportunity Zone Manufacturer

August 25, 2021 GMT

DETROIT--(BUSINESS WIRE)--Aug 25, 2021--

Arctaris Impact Investors, LLC (“Arctaris”) announces an investment in Recaro Automotive, a market leader in high-performance automotive seat manufacturing, to retain and provide jobs in a Michigan Opportunity Zone.

Arctaris partnered with a family office and current Recaro Automotive executive leadership to purchase the business unit from Adient plc. Arctaris invested $22M through a series of equity and debt investments to finance working capital and growth supporting Recaro Automotive’s focus on business expansion of production and jobs in the region.

As a result of the investments, Recaro Automotive moved its headquarters to Clinton Township, a federally designated Opportunity Zone with a poverty rate of 40.7% 1 and unemployment rate of 14.0% 2, substantially higher than the national average. Through its relationship with Arctaris, Recaro Automotive brought jobs to the area and plans to grow their employee base over the next four years with unskilled and skilled labor. The average wage is nearly double the median household income in Greater Detroit.

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“Our relationship with Recaro Automotive fully embraces Arctaris’s mission to integrate impact into every decision we make as a firm and to drive equitable, inclusive prosperity in under-resourced communities,” said Uche Osuji, a Managing Director of Arctaris. “Arctaris is excited to work with Recaro in leveraging Opportunity Zone capital that ensures employment opportunities to benefit local residents.”

This community investment leverages the Opportunity Zone tax incentive, designed to attract unprecedented amounts of investment capital into economically distressed communities. While most Opportunity Zone projects are real estate focused, Arctaris’s relationship with Recaro Automotive reflects the firm’s commitment to deploy capital in projects that make sense for the community, and in this case, dual investments in an operating business and real estate.

“The Arctaris-Recaro Automotive partnership gives us the capital necessary to achieve our goals as we continue to introduce new products while maintaining and growing our workforce presence in Clinton Township,” said Emil Kreycik, Recaro Automotive President and COO.

Arctaris is committed to working with manufacturers and other operating businesses who create long-term, sustainable and well-paying employment opportunities for residents in underserved communities.

About ArctarisImpact Investors

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Arctaris Impact Investors, LLC is a Boston-based impact investment firm with experience spanning more than 12 years and six funds, with both debt and equity investments. The firm manages funds which invest in growth-oriented operating businesses and community infrastructure projects located in underserved communities. Founded in 2009, Arctaris has partnered with the Kresge Foundation, Harvard Business School Professor Michael Porter’s Initiative for a Competitive Inner City, and multiple other foundation, federal and state government agencies to invest in Opportunity Zones, inner cities and targeted rural communities throughout the U.S., with the aim of delivering above-market investment returns alongside positive social impact.

For more information visit www.arctaris.com or for press inquiries contact Jane Moncrief at ir@arctaris.com.

About Recaro Automotive

Recaro Automotive Headquartered in Clinton Township has additional manufacturing and development facilities in Europe and Japan. Using our core competencies of design, ergonomics, robustness, lightweight construction, and first-class workmanship, Recaro manufactures and markets complete seats for passenger car OEM, Commercial Vehicle, and aftermarket customers. For more information, please visit recaro-automotive.com.

1 2019 U.S. Census American Community Survey 5-Year estimates for Clinton Township OZ census tract
2 2019 U.S. Census American Community Survey 5-Year estimates for Clinton Township OZ census tract

View source version on businesswire.com:https://www.businesswire.com/news/home/20210825005625/en/

CONTACT: Jane Moncrief

ir@arctaris.com

KEYWORD: UNITED STATES NORTH AMERICA MICHIGAN

INDUSTRY KEYWORD: PROFESSIONAL SERVICES AFTERMARKET AUTOMOTIVE AUTOMOTIVE MANUFACTURING MANUFACTURING FINANCE BANKING

SOURCE: Arctaris Impact Investors, LLC

Copyright Business Wire 2021.

PUB: 08/25/2021 11:48 AM/DISC: 08/25/2021 11:48 AM

http://www.businesswire.com/news/home/20210825005625/en