AEA Investors has acquired Omega, a provider of aftermarket climate control components used in light vehicles, heavy duty trucks, and agricultural/off-road equipment, from River Associates which acquired the company in January 2012.
Omega is a distributor and assembler of branded and private label aftermarket climate control components and has a product portfolio of more than 20,000 SKUs. Products include compressors, evaporators, condensers, expansion valves, accumulators, filter dryers, fittings, components for rebuilding compressors, fans, blower assemblies, DC motors, reels of hose, and hose assemblies. The company has approximately 140 employees and 250,000 sq. ft. of warehouse space. Omega is led by CEO Peter Butterfield and is based in Irving, TX (www.omega-usa.com).
“We are delighted to have the opportunity to partner with AEA and are grateful for River’s support and guidance over the past several years,” said Mr. Butterfield. “Our partnership with AEA will enable our company to continue our growth strategy both domestically and overseas, thanks to their extensive business network and leadership position across multiple sectors. The present management team remains in place, and is further being strengthened by equity investments from numerous members of the Omega team.”
Antares Capital (www.antares.com) was the administrative agent and joint lead arranger on a $76.7 million senior secured credit facility to support this acquisition. “We are pleased to lead the financing for this latest AEA investment,” said Graham Manley, managing director with Antares Capital. “Omega is a market leader with strong growth potential and a solid management team. We look forward to supporting AEA and Omega management as they continue to execute upon their growth strategy both domestically and overseas.”
AEA makes equity and debt investments in middle market companies that operate in the following sectors: retail and consumer products, services, specialty chemicals, and value-added industrial products. The firm manages approximately $9 billion of capital. AEA was founded in 1968 and is headquartered in New York (www.aeainvestors.com).
River Associates invests in companies with revenues of $20 million to $100 million and EBITDA of $3 million to $12 million. Sectors of interest include niche manufacturing, high margin distribution and industrial services. The firm was founded in 1989 and to date has completed 76 investments, including platform and add-on acquisitions. River Associates is based in Chattanooga, TN (www.riverassociatesllc.com).
© 2016 Private Equity Professional • 9-20-16
