Industrial Opportunity Partners has made an investment in KIC LLC in partnership with the current management team and owners of the company. KIC represents IOP’s third platform investment in Industrial Opportunity Partners II, LP, the firm’s $275 million second fund.
IOP is partnering in its investment with Greg Hatton, John Schneider, Omar Fakhoury and Grant Hatton, all of whom will retain significant ownership interests in KIC and remain in their current management roles to continue to grow the business.
KIC is a supplier of wheel-end components for heavy and medium-duty trucks and trailers. The company supplies brake drums, hub & drum assemblies, steel wheels and aluminum wheels to both original equipment manufacturers and aftermarket distributors. KIC designs and tests its own products and partners with contract manufacturers located throughout the world. The company is headquartered in Vancouver, WA and operates through nine distribution centers located in the United States, Canada, and Mexico (www.kic-group.com).
As part of the transaction, Andrew Weller, an IOP Operating Principal, will assume the position of Vice Chairman. Mr. Weller, who has significant experience with companies serving the commercial vehicle market, is a member of IOP’s Board of Operating Principals, which is comprised of seasoned executives who provide leadership to the businesses in which IOP invests.
“Under Greg Hatton’s strong leadership, KIC has been keenly focused on customer needs. We believe this focus on quality and customer service has helped the company to grow with both new and existing customers. I look forward to working closely with Greg and the rest of the KIC management team in growing the company by building on KIC’s reputation with its customers and suppliers,” said Mr. Weller.
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 near Chicago in Evanston, IL (www.iopfund.com).
“We are very excited to partner with the KIC team. KIC is a growing business with an excellent reputation for quality and customer service and strong relationships with both its customers and suppliers,” said Adam Gottlieb, Senior Managing Director of IOP.
Wells Fargo Bank provided financing and Winston & Strawn provided legal representation to IOP in the transaction.
© 2013 PEPD • Private Equity’s Leading News Magazine • 12-17-13
