American Industrial Partners Exits Two Investments

Middle-market private equity investor American Industrial Partners has exited its investments in both Ichor Systems and Brooks Instrument. Terms of the deals were not released. Ichor, a designer and manufacturer of process tools, gas delivery modules, and chemical delivery modules, was acquired by Francisco Partners. American Industrial Partners acquired Ichor in October 2009. The firm acquired Brooks Instrument, a provider of low flow and pressure/vacuum analytical instruments, in 2007.

PRESS RELEASE
American Industrial Partners, a middle-market private equity group that is focused on acquiring and improving North American-headquartered industrial businesses, announced the sale of Ichor Systems (“Ichor”). Terms of the transaction were not disclosed. Ichor is a leading global designer and manufacturer of process tools, gas delivery modules, and chemical delivery modules purchased by original equipment manufacturers for use in the global semiconductor, alternative energy, LED, data storage, and flat panel display markets. American Industrial Partners acquired Ichor in October 2009 at the trough of the semiconductor equipment market. Headquartered in Tualatin, OR, Ichor employs approximately 540 employees over a global footprint, including operations in Malaysia and Singapore. The Company’s gas and fluid management products and systems are used to produce: microelectronic semiconductor chips, solar panels, LEDs, superconductor wire and thin film magnetic heads. Ichor has established strategic relationships with leading OEMs and serves as a design partner and outsourced manufacturer for its customers’ most critical products. “The success of our Ichor investment was driven by our close partnership with an extraordinary Ichor management team. During our ownership of Ichor, management, working closely with American Industrial Partners, rapidly effected an agenda of operating improvements such as: diversification of the core business into new markets including LED lighting and data storage as well as our relocation of operations to Singapore and Malaysia,” said Joel Stanwood, an American Industrial Partners associate. “American Industrial Partners is primarily comprised of engineers and operators who support management in achieving growth objectives for their business. In our Ichor investment, we not only achieved significant gains through lean manufacturing and low cost country sourcing, but also executed a transforming add-on acquisition and helped Ichor establish an impressive pipeline of new revenue opportunities.”David Shimmon, Chairman and Chief Executive Officer of Ichor, said, “American Industrial Partners had both a unique insight into the semi industry at its 2009 trough and the deep technical skills to successfully work with management to execute numerous operational enhancements. During management’s partnership with American Industrial Partners, Ichor has diversified into entirely new product markets and developed industry leading operational capabilities in Asia. The Ichor team greatly values American Industrial Partners’ contribution to the success of the company and, with this chapter in our development now concluded, we look forward to continued growth.”American Industrial Partners has a long record of successful investing in the industrial economy as demonstrated by prior fund exits that include: Stanadyne Corporation, Bucyrus International, Stolle Machinery Company and MECS, Inc. On December 15, 2011, American Industrial Partners announced the first and final closing of American Industrial Partners Capital Fund V, L.P. (“Fund V”) at $700.0 million, excluding the GP commitment of $17.5 million. American Industrial Partners exceeded its target of $500 million and closed at its hard cap with broad support from both existing and new investors.Background of American Industrial PartnersAmerican Industrial Partners is an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets. American Industrial Partners has deep roots in the industrial economy and has been active in private equity investing since 1989. To date, the firm has completed over 30 transactions and is currently managing more than $1.1 billion in equity capital. American Industrial Partners invests in all forms of corporate divestitures, management buyouts, recapitalizations, and going-private transactions of established businesses with revenues of $100 million to $500 million.

PRESS RELEASE
NEW YORK, Jan. 5, 2012 — /PRNewswire/ — American Industrial Partners, a middle-market private equity group focused on acquiring and improving North American-headquartered industrial businesses, announced the sale of Brooks Instrument (“Brooks”). Brooks is a leading global provider of low flow and pressure / vacuum analytical instruments to a worldwide customer base in a variety of end markets including: industrial, chemical, life science, oil/gas, microelectronics, LED, and alternative energy. American Industrial Partners acquired Brooks from Emerson Electric in December of 2007, and the sale marks the second significant realization for American Industrial Partners Capital Fund IV, L.P (“Fund IV”) in the past week. The terms of the transaction were not disclosed. Headquartered in Hatfield, PA, Brooks employs approximately 800 individuals over a global footprint including 18 locations in 13 countries. The company’s products are used to regulate the flow rates of gases and liquids in laboratory and process environments and include: thermal mass flow controllers, variable area meters, coriolis and ultrasonic flow meters, and capacitance diaphragm gauges. These products are frequently mission critical and are often configured to address the specific technical requirements of end use applications. Brooks serves over 9,000 customers in 75 countries with an installed base of over 1.5 million instruments.”The Brooks investment is a demonstrative case study of the effectiveness of American Industrial Partners’ operating approach,” said Eric Baroyan, a Partner at American Industrial Partners. “Our team is primarily comprised of engineers and operators who support management in achieving the growth objectives for their business. By acquiring and commercializing intellectual property, supporting new product development, developing efficient manufacturing processes, optimizing procurement, and consolidating a global manufacturing footprint, Brooks more than doubled revenue and tripled EBITDA during our investment period.” Clark Hale, Chief Executive Officer of Brooks, said, “Brooks has long been a highly-respected brand with a loyal global customer base. However, it was the support and commitment of the entire American Industrial Partners team that enabled us to achieve the step change in product offerings, operating efficiency, and financial performance over the last few years. We greatly value American Industrial Partners’ contribution to the success of our company and look forward to continued growth under new ownership.In addition to the sale of Brooks, American Industrial Partners also achieved another significant realization on December 30, 2011 with its sale of Ichor Systems. American Industrial Partners has a long track record of successful investing in the industrial economy as demonstrated by prior fund exits that include: Stanadyne Corporation, Bucyrus International, Stolle Machinery Company and MECS, Inc. On December 15, 2011, American Industrial Partners announced the first and final closing of American Industrial Partners Capital Fund V, L.P. (“Fund V”) at $700.0 million, excluding the GP commitment of $17.5 million. American Industrial Partners exceeded its target of $500 million and closed at its hard cap with broad support from both existing and new investors.Background of American Industrial PartnersAmerican Industrial Partners is an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets. American Industrial Partners has deep roots in the industrial economy and has been active in private equity investing since 1989. To date, the Firm has completed over 30 transactions and is currently managing more than $1.1 billion in equity capital. American Industrial Partners invests in all forms of corporate divestitures, management buyouts, recapitalizations, and going-private transactions of established businesses with revenues of $100 million to $500 million.