The Riverside Company has purchased Arrowhead Electrical Products, a supplier of aftermarket, non-discretionary parts and components for a wide variety of motorized vehicles, from Pfingsten Partners which acquired the company in October 2011.
Arrowhead Electrical Products (AEP) 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. AEP has 200 full-time employees and is headquartered north of Minneapolis in Blaine, MN. The company has six distribution centers in the US, one each in Canada and the UK, and sourcing offices in India and China (www.aep.com).
Under Pfingsten ownership, AEP completed an extensive add-on acquisition program to expand its product offering and geographic reach. The add-ons included Outdoor Power Xtreme Equipment (Boca Raton, FL); Winderosa Manufacturing and Distributing (Peru, ME); Boston Auto Electric (Downsview, ON); Atlantic Quality Parts (Jacksonville, FL); Power Sport Industries (New Berlinville, PA); Superior Distribution Center (Modesto, CA); and Hi-Level Enterprises (Doncaster, UK).
According to Riverside Partner Steve Dyke, AEP will continue to actively seek add-on acquisition opportunities in the automotive aftermarket. “AEP has thrived under the leadership of CEO Jim Wisnoski and a strong management team due to its customer-centric focus. The company has consistently expanded its product line through both new product development and acquisitions. We are excited to partner with the AEP team to build upon their strong track record of growth and deliver even more high quality products.”
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $300 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 400 transactions. 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 Mr. Dyke on the transaction for Riverside were Principal Rob Langley, Senior Associate Alex Treece, Associate Phillip Furbay, Operating Partner Steve Stubitz, and Managing Director Brian Bunker. Origination Principal Jim Butterfield sourced the transaction. Anne Hayes, a Riverside partner, led the financing of the transaction which was provided by Ares Capital (www.arescapitalcorp.com) and Varagon Capital Partners (www.varagon.com).
Pfingsten Partners invests in middle market manufacturing, distribution and business services companies. Since its founding in 1989, Pfingsten has raised four investment funds with total commitments of approximately $1 billion. The firm is based in Chicago with additional offices in India and China (www.pfingsten.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 9-1-15
