Industrial Opportunity Partners, the Evanston, Illinois-based private equity shop, has acquired Aarrowcast Inc., a provider of gray, ductile and austempered ductile iron castings. Terms of the deal were not released. Aarrowcast represents IOP’s first platform investment in Industrial Opportunity Partners II, L.P., a $275 million fund.
Industrial Opportunity Partners (“IOP”), a private equity firm based in Evanston, Ill., today announced that it has acquired Aarrowcast Inc. (“Aarrowcast” or the “Company”).
Aarrowcast is an industry-leading provider of gray, ductile and austempered ductile iron castings that specializes in large, complex castings utilizing sophisticated metallurgy. Aarrowcast features three separate molding lines, including the largest automated green sand flask in North America – the Georg Fischer line, which is also the second largest such flask in the world. The Company operates from its single plant location in Shawano, Wisconsin and casts products for equipment in the agriculture, off- highway heavy truck, military and construction markets.
The Company’s senior management team, led by Ben Grigg, President and CEO, will continue to manage and grow the business. In addition, Andrew Weller, an IOP Operating Principal, will assume the newly-created position of Chairman of the Company. Mr. Weller has direct experience in overseeing and operating iron foundries. IOP’s Board of Operating Principals is comprised of seasoned executives who provide leadership to businesses in which IOP invests.
Adam Gottlieb, Senior Managing Director of IOP, said, “We are very excited to acquire Aarrowcast, a market leader with unique manufacturing capabilities and a solid history of providing complex products to a long list of market-leading customers.”
Mr. Weller added, “Aarrowcast has built a reputation with its customers, suppliers, and employees based on unmatched manufacturing abilities, service levels and product breadth. I look forward to working closely with Ben, his team, and all Aarrowcast employees in continuing to invest in the Company to achieve further growth.”
Mr. Grigg commented, “We are thrilled to be partnering with Industrial Opportunity Partners, whose operational experience and strategic support will enhance Aarrowcast’s continuous effort to deliver high-quality products and extraordinary service levels to our customers.”
Aarrowcast represents IOP’s first platform investment in Industrial Opportunity Partners II, L.P., IOP’s recently raised $275 million committed fund.
William Blair represented Aarrowcast and the selling shareholders in this transaction. PNC Bank and RBS provided the senior financing, while Yukon Partners provided the subordinated financing for the acquisition. Legal representation for IOP was provided by Schiff Hardin, while Morrison Cohen represented Aarrowcast and the selling shareholders.
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About Aarrowcast Inc.
Aarrowcast is a leading provider of gray, ductile and austempered ductile iron castings that specializes in large, complex castings utilizing sophisticated metallurgy. The Company’s products are sold to global original equipment manufacturers in the agriculture, off-highway heavy truck, military and construction industries. Aarrowcast operates from a single facility in Shawano, Wisconsin. For more information, visit Aarrowcast’s website at www.aarrowcast.com.
About Industrial Opportunity Partners
IOP is an Evanston, Ill.-based private equity firm dedicated to creating value through investing in manufacturing and value-added distribution businesses with sales between $30 million and $350 million. IOP focuses on businesses with strong product, customer, and market positions, and provides management and operational resources to support growth in sales and earnings at its businesses.