Operations-focused private equity firm Industrial Opportunity Partners of Evanston, Ill. has completed the sale of portfolio company Gulf Coast Machine & Supply Company to Altus Capital Partners. The exit represents IOP’s third investment realization from its initial $185 million committed fund.
Operations-focused private equity firm Industrial Opportunity Partners (“IOP”) of Evanston, Ill., today announced that it has completed the sale of portfolio company Gulf Coast Machine & Supply Company (“Gulfco” or the “Company”) to Altus Capital Partners (“Altus”). The divestiture represents IOP’s third investment realization from its initial $185 million committed fund.
Gulfco, based in Beaumont, Tex., is a leading manufacturer of large forgings used in the oil and gas, petrochemical, wind energy and general industrial markets. The Company’s products consist of large rolled ring and open-die forgings. Gulfco heat treats and rough machines most of its products, which are sold to customers who then finish machine the products into component parts for use in subsea pipelines, refineries, oil rigs, petrochemical plants, heat exchangers, and multiple general industrial applications.
Gulfco’s former Chairman of the Board and current IOP Operating Principal Nick Galambos provided strategic oversight from IOP’s investment in February 2008 through the sale. David Mackin, as President, will remain in the same role at Gulfco following the acquisition.
Mr. Galambos commented, “It has been a pleasure to work with Gulfco’s talented management team over the last four years. Supported by IOP’s continuing strategic direction and investment, Gulfco has broadened its capabilities, increased its capacity, and improved its manufacturing processes. The Company is well positioned in its niche market.”
Ken Tallering, a senior managing director of IOP, added, “Altus is acquiring an excellent business with the potential to grow through expansion of its products and markets. In addition to being an excellent investment for IOP, Gulfco has great prospects with Altus.”
Harris Williams & Co. acted as financial advisor and McDermott Will & Emery provided legal representation to IOP in connection with the sale transaction.
Gulfco is a leading manufacturer of large forgings for use in the oil and gas, petrochemical, wind energy and general industrial markets.
About Industrial Opportunity Partners
IOP, an Evanston, Ill.-based private equity firm with $460 million of committed capital under management, is 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 sales and earnings growth at its businesses. For more information, visit IOP’s website at www.iopfund.com.
About Altus Capital Partners
Based in Wilton, Conn. with an office in Lincolnshire, Ill., Altus Capital Partners, Inc. invests alongside management in profitable small to medium-sized manufacturing companies domiciled in the U.S. that have proprietary technologies, processes and products. The Altus investment team is led by three partners who, in 17 years of successfully investing together, have acquired 23 platform companies. For more information, visit Altus’ website at www.altuscapitalpartners.com.