IOP Adds to Auto Aftermarket Platform

Industrial Opportunity Partners (IOP) has added to its automotive aftermarket platform with the buy of Competition Cams, a maker of camshaft and valvetrain components.

Competition Cams (COMP Cams) is a manufacturer and distributor of automotive aftermarket products specializing in camshaft and valvetrain related components.

The company, led by its president Chris Douglas, is headquartered in Memphis with additional manufacturing and distribution locations in Olive Branch and Ashland, Mississippi; and Bronson, Michigan.

Competition Cams joins Edelbrock Corporation, a Torrance, California-based maker of specialty automotive and motorcycle parts, which IOP acquired in June 2010. The company products, sold under the Edelbrock and Russell brands, are used in numerous vehicle types, including early- and late-model performance cars, trucks and off-road, and Japanese domestic. Edelbrock is led by CEO Don Barry.

“The COMP Cams management team and I are looking forward to our partnership with IOP and Edelbrock,” said Mr. Douglas. “We believe IOP’s operations-focused approach will assist us in optimizing all aspects of our business to support continued growth and better serve the automotive aftermarket and racing communities.”

Phil Fioravante, an IOP operating principal, will assume the position of chairman of IOP’s automotive aftermarket platform.

The buy of COMP Cams is the sixth platform investment for IOP’s third fund, Industrial Opportunity Partners III LP, which closed in July 2017 with $450 million of committed capital. The five earlier Fund III portfolio companies are Midwest Paper (acquired in January 2020), a Wisconsin-based manufacturer of recycled containerboard and white paper for book publishing and printing/writing applications; United Poly Systems (acquired in June 2019), a Missouri-based manufacturer of made-to-order high-density polyethylene (HDPE) pipe; SignResource (acquired in July 2018), a Tennessee-based designer and manufacturer of exterior and interior signage for retail fuel/convenience store chains; Royston (acquired in March 2018), a Georgia-based designer, manufacturer and installer of check out and merchandising fixtures and equipment; and Creative Foam (acquired in October 2017), a Michigan-based manufacturer of die-cut, formed foam, nonwoven, and other components used in the automotive, medical, and wind energy markets.

IOP focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $400 million. The firm targets businesses with strong product, customer, and market positions and provides both management and operational resources to support sales growth and operational improvements. IOP is headquartered in the Chicago suburb of Evanston.

The buy of Competition Cams was backed by senior debt from PNC Bank and Freeport Financial Partners with subordinated debt financing provided by Norwest Mezzanine Partners.

© 2020 Private Equity Professional | February 7, 2020

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