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American Industrial, Partners Group Exit Micro-Poise

AMETEK Inc. has acquired Micro-Poise Measurement Systems for $170 million in cash. The sellers were middle-market private equity firm American Industrial Partners and investment manager Partners Group AG. Micro-Poise is a provider of integrated test and measurement solutions for the tire industry. American Industrial Partners and Partners Group bought the company in April of 2007.

PRESS RELEASE
American Industrial Partners (“AIP”), a middle-market private equity firm focused on acquiring and improving North American-headquartered industrial businesses, and Partners Group AG (“Partners Group”), the global private markets investment manager, today announced the sale of Micro-Poise Measurement Systems, LLC (“Micro-Poise” or the “Company”) to AMETEK, Inc. (“AMETEK”) for $170 million in cash. Micro-Poise, headquartered in Streetsboro, OH, is the world’s largest and most technologically advanced provider of integrated test and measurement solutions for the tire industry in both developed and emerging markets. American Industrial Partners and Partners Group teamed to acquire Micro-Poise from Illinois Tool Works, Inc. in April of 2007.

The Company’s test and measurement products are used to measure the balance, uniformity, and geometry of both tires and tire & wheel assemblies. Micro-Poise operates four manufacturing facilities in the U.S., Europe, and China with over 330 employees worldwide. The Company’s test & measurement technologies provide the industry’s most accurate and repeatable measurements and fastest cycle times. These solutions are critical for its customers not only to ensure the highest levels of tire quality and performance, but also to improve its customers’ overall profitability by increasing throughput and reducing scrap costs.

“Micro-Poise is yet another instance in which our firm successfully partnered with company management to establish industry leading operating performance and a highly attractive investment outcome” said Eric Baroyan, a Partner at American Industrial Partners. “Through aggressive new product development, strategic acquisitions, expanding the Company’s Asian footprint, and improving manufacturing & supply-chain efficiencies, the engineers and operators who comprise American Industrial Partners, together with Micro-Poise management, approximately doubled EBITDA over the course of our ownership.” AIP earned a 5.8x gross multiple of money and a 36% gross IRR on its invested capital in Micro-Poise.

David Layton, a senior investment manager with Partners Group, commented, “Micro-Poise is the latest success story from our global mid-market portfolio. Our strategy has been to identify regionally focused mid-market companies that have significant potential to grow and expand internationally – and to leverage Partners Group’s global platform to help achieve that growth. Over the past several years, Micro-Poise has successfully grown its sales in Asia at an annualized growth rate of approximately 25%.”

Steve Harris, Chief Executive Officer of Micro-Poise, said, “Micro-Poise has long been a highly-respected brand with a loyal global customer base. However, it was the support and commitment provided by AIP and Partners Group that enabled us to achieve the step change in product offerings, operating efficiency, and financial performance over the last few years. We greatly value our partnership with American Industrial Partners and Partners Group and the resultant success of our company. We look forward to continued growth under AMETEK.”

Morgan Stanley served as the financial advisor and Patton Boggs, LLP served as legal counsel to AIP and Partners Group.

Background on American Industrial Partners

American Industrial Partners is an operationally focused middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets. The Firm has deep roots in the industrial economy and has been active in private equity investing since 1989. To date, AIP has completed over 30 transactions and is currently managing more than $1.1 billion in equity capital. AIP invests in corporate divestitures, management buyouts, recapitalizations, and going-private transactions of established businesses with revenues of $100 million to $500 million. Micro-Poise represented the third in a series of successful exits by AIP in the last twelve months. Prior exits included the sale of Brooks Instruments, LLC in which AIP earned a 5.3x gross multiple of money and a 59% gross IRR and the sale of Ichor Systems Holdings, LLC in which AIP earned a 8.8x gross multiple of money and an 88% gross IRR. For more information about American Industrial Partners, contact Ben DeRosa, Partner at 212-627-2360, extension 200.

Background on Partners Group

Partners Group is a global private markets investment management firm with over EUR 25 billion in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Munich, Dubai, Singapore, Beijing, Seoul, Tokyo and Sydney. The firm employs over 600 people and is listed on the SIX Swiss Exchange (symbol:PGHN) with a market capitalization of over CHF 5 billion with a clear majority owned by its partners and employees.

The sale of Micro-Poise marks continued transaction activity for Partners Group as it has completed several recent mid-market buyout investments, including Trimco, a Hong Kong-based supplier of labeling solutions for the global apparel industry, Global Blue, a Switzerland-based provider of value-added technology and processing services that enable international shopping, and Strategic Partners, a California-based provider of medical uniforms in North America. Also, last year Partners Group acquired an interest in another tire-related company, Saehwa International Machinery, a Korea-based manufacturer of tire building machinery, tire molds and drums.

For investor relations inquiries, please contact Philip Sauer, at +41 41 784 6600. For media relations inquiries, please contact Dr. Anna Hollmann, at +41 41 784 6372.

SOURCE American Industrial Partners