Industrial Opportunity Partners Invests in Betty Machine
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Industrial Opportunity Partners Invests in Betty Machine

betty nfIndustrial Opportunity Partners (IOP) has made an investment in Betty Machine Company to support the recapitalization of the business.

Betty Machine represents IOP’s second platform investment in Industrial Opportunity Partners II, LP, the firm’s $275 million second fund which closed in April 2012. IOP is partnering in this investment with John Zobl, the current owner and operator of Betty Machine. Mr. Zobl will remain as President and CEO of Betty Machine and will continue to serve on the Board of Directors. In addition, Nick Galambos, an IOP Operating Principal, will assume the position of Chairman.

Betty Machine is a precision machining manufacturer of close tolerance parts primarily for automotive applications. The company supplies products, through its Tier 1 customers, to auto original equipment manufacturers (Ford, GM, Chrysler, Honda, and Toyota) as well as other manufacturers. Volumes range from low volume prototypes to high volume production parts. Most of the company’s products are used in assemblies that span multiple vehicle platforms and run for several years. Betty Machine operates out of a 75,000 sq. ft. facility in Hendersonville, TN (near Nashville) (www.bettymachine.com).

“The management team and I are excited to partner with IOP. IOP brings both capital and the experience of Nick Galambos and the rest of the IOP team which should permit the company to continue to grow and capitalize on opportunities,” said Mr. Zobl.

IOP focuses on acquiring 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 has $460 million of committed capital and was founded in 2005. IOP is headquartered in Evanston, IL (www.iopfund.com).

“We are very excited to partner with John Zobl. We believe Betty Machine is an established business with an excellent reputation for quality and customer service and strong relationships with high-quality customers,” said Kenneth Tallering, Senior Managing Director of IOP.

The opportunity to invest in Betty Machine Company was sourced by IOP through Focus Capital Advisors (www.fcateam.com).

Cole Taylor Bank provided financing for the acquisition.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-31-13

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