Aperion, Falcon Investment to buy Ontario Drive & Gear

Aperion Management and Falcon Investment Advisors, along with company management, are acquiring Ontario Drive & Gear Ltd. Financial terms weren’t announced. Stone Arch Capital is the seller. Ontario Drive & Gear, of Ontario, makes amphibious utility/extreme terrain vehicles for commercial and recreational use under the Argo brand. ORIX Corporate Capital and Ocean Avenue Capital Partners are also investing in the deal. The Bank of Montreal’s Corporate Finance Division is providing financing. Greene Holcomb & Fisher advised Stone Arch Capital/ODG.

PRESS RELEASE

August 22, 2014 – Private equity investors Aperion Management, LLC and Falcon Investment Advisors, LLC have partnered with management to acquire Ontario Drive & Gear Limited (“ODG”) from Minneapolis-based private equity firm Stone Arch Capital, LLC and other investors.

ODG is the world’s leading manufacturer of amphibious utility/extreme terrain vehicles for commercial and recreational use under the Argo brand.  ODG is also a leading provider of high quality gears, couplings and transmission components to third-party Original Equipment Manufacturers (“OEM’s”) across diversified end markets.  The company is headquartered in New Hamburg, Ontario.

ODG’s management team, including Chairman Joerg Stieber, are investors in the transaction and will continue to manage the day-to-day operations of the company in partnership with Aperion and Falcon.

Joerg Stieber, who will continue as Chairman, said, “Our management team and I are excited to partner with Aperion and Falcon. Together, we will take ODG to the next level.  I would also like to thank Clay Miller and the Stone Arch team for their support and guidance to help ODG nearly double sales during their stewardship.”

“We are fortunate to have had the opportunity to work with Joerg Stieber and the rest of the outstanding ODG management team. We are pleased with the outstanding results of our investment in ODG and are excited about its future success with a strong partner like Aperion,” said Clay Miller, a Partner of Stone Arch Capital.

Minneapolis-based investment banking firm Greene Holcomb & Fisher advised Stone Arch Capital and ODG in the transaction.

Bank of Montreal, Corporate Finance Division, provided bank financing, and ORIX Corporate Capital Inc. and Ocean Avenue Capital Partners, L.P. invested with Aperion and Falcon.  Winston & Strawn LLP advised the buyer group on the transaction.

About Aperion Management

Aperion Management, formed in 2006, is a private equity firm that seeks to invest in small to mid-size businesses valued between $15 million and $150 million with solid fundamentals and attractive growth prospects.  Aperion seeks to partner with driven management teams to identify key business drivers and unlock opportunities for value creation and growth.  ODG will join Aperion platform companies RoadSafe Traffic Systems, Inc., the largest provider of traffic safety equipment and services, including temporary traffic control devices on a rental basis, and pavement marking and sign installation services, to the roadway construction industry in the United States; Stella Environmental Services, LLC, a municipal solid waste (“MSW”) transfer station management and transportation business; and Tri Con Works, LLC, a leading environmental services provider specializing in the construction and maintenance of landfill gas monitoring, collection and recovery systems, as well as leachate systems.  For more information, please contact Kyun Park at 212-300-0279 or David Brady at 212-300-6193.

About Falcon Investment Advisors

With offices in Boston and New York, Falcon provides innovative capital solutions in amounts of $10 million to $75 million to middle market companies throughout North America. Since its founding in 2000, Falcon has invested in over 50 companies in a broad range of industries to support acquisitions, recapitalizations, buyouts and organic growth. Falcon is currently investing out of Falcon Strategic Partners IV, LP, a $910 million vehicle. For more information or to refer an investment opportunity, please contact Michel Bayard at 617-412-2723 or visit www.falconinvestments.com.

About Stone Arch Capital

Stone Arch Capital, LLC (“SAC”) is a Minneapolis, MN based private equity fund focused on making equity investments in lower middle market companies across a wide variety of industries, including niche manufacturing, consumer products, business and industrial services and specialty distribution. SAC looks to partner with strong, dedicated management teams willing to stay with the business and invest alongside us. In addition to providing capital resources, SAC creates value for its portfolio companies by leveraging its expertise, its Advisory Council and network of executives to forge new relationships, strengthen and expand market positions, improve operating margins and execute complementary add-on acquisitions.

 About Greene Holcomb Fisher

Greene Holcomb Fisher, with offices in Minneapolis, Phoenix, Seattle and Atlanta, is an investment banking firm that specializes in mergers and acquisitions, private placements and financial advisory services for the middle market.  At Greene Holcomb Fisher, experience from nationally prominent investment banks, New York Stock Exchange-listed companies and leading law firms is blended with senior-level attention and entrepreneurial ingenuity to deliver creative services to high quality companies.  Greene Holcomb Fisher investment bankers specialize in the Consumer, Food & Agribusiness, Healthcare, Industrial Products & Services, Business & Education Services, Technology and Energy & Infrastructure sectors.  Greene Holcomb Fisher provides global reach through Clairfield International.

 

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