Chicago-based Prospect Partners Recaps Irrigation Components

Chicago-based Prospect Partners has recapped Irrigation Components International Inc., the company said. Daphne, Ala.-based Irrigation Components is a provider of agricultural irrigation equipment components. The company becomes the fourth platform company of Prospect Partners’ third fund, the firm said.

Chicago-based Prospect Partners, LLC, a leading private equity firm investing in smaller lower-middle-market companies, today announced the management-led recapitalization of Irrigation Components International, Inc. (ICII). The Daphne, Ala.-based international provider of agricultural irrigation equipment components becomes the fourth platform company of Prospect Partners’ third fund.

ICII manufactures and distributes irrigation equipment parts to Original Equipment Manufacturers (OEMs) and after-market customers, primarily dealers. With a distribution system that includes the United States and 35 countries worldwide, ICII has become the world’s largest independent supplier of its specialty, center pivot components and spare parts. ICII offers a range of mechanical and electrical components to make center pivots, including power transmissions, flow meters, sprinklers, controls, wires and cables, and fittings. The company is led by John McCabe, President, and Adam Skolnik, CEO.

“We are excited to invest alongside management in such a well-positioned niche market leader,” said Lou Kenter, a founding principal of Prospect Partners. “ICII is run by an exceptional team of industry veterans with proven operational success and a strong plan to continue to develop the company as the best one-stop source for all components needed to make and repair center pivots.”

Center pivot, or mechanized irrigation technology, is a type of agricultural irrigation for large scale crop production in which the equipment rotates around in a circle, often creating a green circular pattern when viewed from the sky. The equipment is electric motor-powered, and crops are watered by overhead low-pressure, high efficient sprinklers. Center pivot is a popular form of irrigation for many types of crops, including corn, soybeans, potatoes, sunflowers, peanuts, cotton, alfalfa, and wheat.

“We look forward to Prospect Partners’ support as we execute the next chapter of ICII’s growth,” said Mr. Skolnik. “We sought a private equity investor we felt would be a genuine fit, professionally and personally. Prospect Partners’ track record and relationship-oriented reputation were big factors in our decision to partner together.”

The other platform companies in Prospect Partners’ $200 million Prospect Partners III, L.P., are: micro-irrigation systems provider Landmark Irrigation Holding Services, Inc.; water treatment product provider Prospect Water Co. LLC; and direct-to-consumer diabetes-care products provider SurePoint Holdings, LLC. Prospect Partners III, L.P. closed in August, 2010.

About Prospect Partners, LLC

Prospect Partners is a leading private equity firm investing in smaller lower-middle-market companies, managing $470 million across three funds. A highly experienced and active investor, Prospect Partners focuses exclusively on management-led leveraged recapitalizations and acquisitions of niche market leaders with revenues typically under $75 million. Since 1998, Prospect Partners has invested opportunistically nationwide in more than 90 companies in a broad range of niche manufacturing, distribution, and specialty service markets. Based in Chicago, Prospect Partners also has an office in Menlo Park, Calif.