Industrial Opportunity Partners exits Aarrowcast

The divestiture represents IOP's seventh investment realization from its $275 million second fund.

Industrial Opportunity Partners sold steel and iron manufacturing company Aarrowcast Inc to Charter Manufacturing Company. IOP acquired the company in 2012. The exit represents IOP’s seventh investment realization from its $275 million second fund.

PRESS RELEASE

Industrial Opportunity Partners (“IOP”), an operations-focused private equity firm based in Evanston, Ill., today announced that it has completed the sale of portfolio company Aarrowcast, Inc. (“Aarrowcast” or the “Company”) to Charter Manufacturing Company, Inc. (“Charter”), a family-owned steel and iron manufacturing company. The divestiture represents IOP’s seventh investment realization from its $275 million second fund, Industrial Opportunity Partners II, L.P. Terms of the transaction were not disclosed. IOP acquired Aarrowcast in August 2012.

Aarrowcast is a provider of ductile, gray 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 line in North America – the Georg Fischer line, which is also the second largest such molding line in the world. The Company operates from its single plant location in Shawano, Wis. and casts products for equipment in the agriculture, off-highway heavy truck, military and construction markets.

IOP Operating Principal Andy Weller served as Aarrowcast’s Chairman of the Board, providing strategic oversight of the Company during IOP’s investment period. Mr. Weller said, “Through the leadership and dedication of the Company’s management team, led by President & CEO Randy Brull, Aarrowcast has expanded its product offering, customer base and manufacturing capabilities and, today, is one of the most modern foundries in North America. I believe the Company is positioned well for the future.”

Chris Willis, Managing Director of IOP, added, “We would like to thank the management team at Aarrowcast and have appreciated the opportunity to work with them over the years. We believe Charter’s industry experience and long-term investment strategy suits the Company well. IOP expects that Aarrowcast will continue to grow and thrive under Charter’s ownership.”

Citizens Capital Markets acted as financial advisor and Winston & Strawn LLP provided legal representation to IOP in connection with the sale transaction.

About Aarrowcast
Aarrowcast is a provider of ductile, gray and austempered ductile iron castings that specializes in large, complex castings utilizing sophisticated metallurgy. The Company operates from its single plant location in Shawano, Wis. and casts products for equipment in the agriculture, off-highway heavy truck, military and construction markets.

About Industrial Opportunity Partners
IOP, an Evanston, Ill.-based private equity firm with $910 million of committed capital since inception, is dedicated to creating value through investing in manufacturing and value-added distribution businesses with sales between $30 million and $400 million. IOP focuses on businesses with strong product, customer, and market positions, and provides management and operational resources to support sales and earnings growth at its businesses.