Industrial Opportunity Partners has acquired Aarrowcast, a manufacturer of ductile and gray iron castings. “We are very excited to acquire Aarrowcast, a market leader with unique manufacturing capabilities and a solid history of providing complex products to a long list of market-leading customers,” said Adam Gottlieb, Senior Managing Director of IOP.
Aarrowcast operates a 210,000 square foot foundry that produces 85 million pounds of ductile and gray iron castings used by original equipment manufacturers in the agriculture, off-highway heavy truck, military and construction industries. The company is based in Shawano, WI (www.aarrowcast.com).
The company’s senior management team, led by Ben Grigg, President and CEO, will continue to manage and grow the business. In addition, Andrew Weller, an IOP Operating Principal, will assume the newly-created position of Chairman of the company. Mr. Weller has direct experience in overseeing and operating iron foundries.
PNC Bank and RBS provided the senior financing, while Yukon Partners provided the subordinated financing for the acquisition.
Industrial Opportunity Partners focuses on acquiring and overseeing middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $350 million. IOP targets businesses with strong product, customer, and market positions and provides management and operational resources to support sales growth and operational improvements. The firm was founded in 2005 and is located in Evanston, IL (www.iopfund.com).
Aarrowcast represents IOP’s first platform investment in Industrial Opportunity Partners II, L.P., IOP’s recently raised $275 million committed fund.
William Blair represented Aarrowcast and the selling shareholders in this transaction.
© 2012 PEPD • Private Equity’s Leading News Magazine • 8-31-12
