Industrial Opportunity Partners has completed the sale of its portfolio company Gulf Coast Machine & Supply (Gulfco) to Altus Capital Partners. The divestiture represents the firm’s third investment realization from its initial $185 million committed fund. Industrial Opportunity Partners acquired Gulfco in February 2008.
Gulfco is a provider of large format forgings. Capabilities include ring rolling, open die forging, machining, heat treating, and testing for products formed into large format discs, shaped dies, seamless rolled rings, bushings, and blocks. The company’s products are used in subsea production facilities, refineries, offshore oil and gas rigs, and mining. Gulfco is based in Beaumont, TX (www.gulfco.com).
“It has been a pleasure to work with Gulfco’s talented management team over the last four years. Supported by IOP’s continuing strategic direction and investment, Gulfco has broadened its capabilities, increased its capacity, and improved its manufacturing processes. The company is well positioned in its niche market,” said Nick Galambos, Gulfco’s former Chairman of the Board and current IOP Operating Principal.
Industrial Opportunity Partners (IOP) 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 headquartered in Evanston, IL (www.iopfund.com).
“Altus is acquiring an excellent business with the potential to grow through expansion of its products and markets. In addition to being an excellent investment for IOP, Gulfco has great prospects with Altus,” said Ken Tallering, a senior managing director of IOP.
Altus Capital Partners invests in corporate divestitures, management-led buyouts and privately held or family-owned businesses with manufacturing operations based primarily in the Midwest and Eastern regions of the United States. Target companies will have at least $5 million of EBITDA and an enterprise value from $30 million to $100 million. The firm has offices in Wilton, CT and Lincolnshire, IL (www.altuscapitalpartners.com).
Harris Williams & Co. acted as financial advisor and McDermott Will & Emery provided legal representation to Industrial Opportunity Partners in connection with this transaction.
Prospect Capital provided a $42 million senior secured loan to support the acquisition of Gulfco by Altus Capital Partners.
© 2012 PEPD • Private Equity’s Leading News Magazine • 10-16-12