Arrowhead Electrical Products, a portfolio company of The Riverside Company and Investcorp, has agreed to acquire J&N Auto Electric.
J&N Auto Electric (J&N) distributes aftermarket replacement rotating electrical parts and accessories used in a variety of off-highway markets, including industrial, agricultural, marine, and outdoor power equipment applications. The company sells its branded rotating electrical parts, including starters, alternators, and solenoids, to over 4,000 national and international customers. J&N was founded in 1954 by John Kuechly as an automotive repair shop and is today led by President Nick Kuechly and Chairman Tom Kuechly. The company is headquartered in Cincinnati (www.jnelectric.com).
This is the third add-on completed by Arrowhead since Riverside acquired it from Pfingsten Partners in September 2015. According to Riverside, this transaction combines two of the oldest and strongest rotating electrical distribution companies in the market today. “J&N is a well-recognized brand and leader in off-highway aftermarket rotating electrical products,” said Riverside Managing Partner Suzanne Kriscunas. “We’re excited about the opportunity to increase Arrowhead’s scale in this attractive market and provide improved sales and service to our shared customer base.”
Arrowhead Electrical Products has approximately 75,000 SKUs including starters, clutches, driveline components, alternators, generators, suspension parts, gasket kits, and other components. The company serves more than 6,000 customers across a number of different end markets, including powersports, agricultural & industrial, outdoor power equipment, marine, and automotive & heavy duty. Arrowhead has 200 full-time employees and is headquartered north of Minneapolis in Blaine, MN (www.arrowheadep.com).
According to Riverside Principal Brad Roberts, the combination of Arrowhead and J&N is highly complementary for both companies. “J&N has exceptional operations and outstanding capabilities and the combination of Arrowhead and J&N will help us collectively improve the pace of new product introductions, expand customer reach, and enjoy extensive cross-selling opportunities,” he said.
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 450 transactions and the firm’s international portfolio includes more than 80 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
Working with Ms. Kriscunas and Mr. Roberts on the transaction for Riverside were Operating Partner Steve Stubitz, Vice President Drew Flanigan, Senior Associate Laura Swearingen and Associate Mark Barron. Riverside Partner Anne Hayes helped secure financing for the deal.
Riverside is aggressively expanding Arrowhead and continues to seek complementary add-ons as part of its strategy.
© 2017 Private Equity Professional | January 17, 2017
