HOUSTON and BOSTON, March 18, 2025 -- Ara Partners, a global private equity firm dedicated to decarbonizing the industrial economy, announced that e-VAC Magnetics, LLC ("eVAC") has been awarded IJ Global's 2024 Energy Transition Deal of the Year (North America). The award recognizes eVac's $335 million non-recourse financing for their first-of-its-kind U.S. permanent magnet manufacturing facility in Sumter County, South Carolina. The transaction has also been recognized by Proximo as the North American Manufacturing Deal of the Year.
This landmark transaction, undertaken by Ara Partners and its portfolio company Vacuumschmelze GmbH & Co. KG ("VAC"), strengthens the domestic supply chain for electric vehicles, aerospace and defense, renewable energy, and other critical industries.
"We are honored that eVAC's financing has been recognized as IJ Global's 2024 Energy Transition Deal of the Year," said Tuan Tran, Senior Managing Director. "This transaction underscores the finance market's confidence in Ara's ability to scale world-class manufacturing that supports both the energy transition and U.S. supply chain security. We deeply appreciate the trust and support of our financing partners, as well as the broader ecosystem of stakeholders who made this possible."
The financing was led by BMO and Mitsubishi UFJ Financial Group, Inc. ("MUFG"), with Canadian Imperial Bank of Commerce ("CIBC"), Coöperatieve Rabobank U.A. ("Rabobank"), and Société Générale S.A. ("Société Générale") as Coordinating Lead Arrangers.
The eVAC facility was established through a strategic partnership with General Motors ("GM") to supply rare earth permanent magnets for GM's electric vehicles over the next decade. The project has also received strong federal and state support, including a Defense Production Act Title III grant from the Department of Defense and a $111.9 million Qualifying Advanced Energy Project Tax Credit.
PEI Global Partners LLC ("PEI") served as Exclusive Financial Advisor to Ara Partners and VAC on the transaction. Latham & Watkins LLP served as borrower counsel, while Milbank LLP served as lenders counsel.
"PEI is proud to have supported this award-winning transaction, which demonstrates our firm's ingenuity, deep industry relationships and focus on delivering an optimal outcome for our clients," said Sky Fabian, Partner at PEI. "A collaborative effort among Ara Partners, eVAC, the banks, lawyers and advisors enabled a first-of-a-kind transaction that will serve as a blueprint for advanced manufacturing financing going forward. We sincerely thank everyone involved for their trust, commitment and tireless efforts in getting this transaction across the finish line."
"We are truly honored by this award, which recognizes the bold vision and unwavering dedication behind our e-VAC project in the United States," noted Erik Eschen, CEO of VAC. "This investment secures North America's supply chain and drives re-industrialization, demonstrating the power of collaboration among industry, policymakers, investors, and communities. By pushing the boundaries of innovation and forging strategic partnerships, we have proven that even the most ambitious projects can be realized within a short timeframe when collaboration drives progress."
This recognition from IJ Global, a leading publication covering global infrastructure and energy finance, highlights the groundbreaking nature of eVAC's financing structure and its role in advancing sustainable industrial manufacturing in North America.
About Vacuumschmelze
Vacuumschmelze ("VAC") is a leading global producer of advanced magnetic solutions, rare earth permanent magnets, and inductive components that are crucial for the decarbonization of our planet. With more than 100 years of application know-how and experience in material science and product development, VAC designs and manufactures mission critical solutions for a wide variety of industries, including renewable energy, e-mobility, automotive, industrial automation, medical, aerospace and defense. VAC's unique ability to develop and manufacture from base elements through final products enables us to provide customers with optimal form factors and performance, generating best in class efficient solutions in an environmentally conscious manner.
More information at www.vacuumschmelze.com.
About Ara Partners
Ara Partners is a global private equity and infrastructure investment firm focused on industrial decarbonization. Founded in 2017, Ara Partners seeks to build and scale companies with significant decarbonization impact across the industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture sectors. The company operates from offices in Houston, Boston, Washington, D.C., and Dublin. Ara Partners closed its third private equity fund in December 2023 with over $2.8 billion in capital commitments. As of September 2024, Ara Partners had approximately $6.3 billion of assets under management.
For more information about Ara Partners, please visit www.arapartners.com.
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