American Industrial Partners

Last updated
American Industrial Partners
Company type private company
Industry financial services
FoundedApril 1988;36 years ago (1988-04) [1]
Headquarters 450 Lexington Avenue,
New York City
,
United States
Area served
United States
Canada
Key people
  • John Becker (Managing partner)
  • Dino Cusumano (Managing partner)
  • Kim Marvin (Managing partner)
Total assets ~US$7 billion (2019) [2]
Number of employees
50 (2020) [3]
Website americanindustrial.com

American Industrial Partners is an American private equity partnership. It invests in industrial businesses in the United States and Canada. It was founded in 1988 by Theodore Rogers and Richard Bingham. [4] It has offices in New York City; the managing partners are Kim Marvin, John Becker and Dino Cusumano. [5]

Contents

History and acquisitions

American Industrial Partners was founded in 1988; according to Indianapolis News , the partnership primary consisted of CEOs who resigned following the takeovers of their companies. The partnership focused on investing in manufacturing companies. [6] Unlike some contemporary investment firms, [7] rather than perform leveraged buyouts, AIP claims to focus on improving the profitability of acquired companies. [8] After acquiring companies, it would focus on "cutting debt and improving operations" while adopting a "hands-off management style" that typically retained previous leadership. Its purchases are typically financed 55% with debt, below the typical 65% to 70% of other firms. [7] Ian Johnson of the Baltimore Sun attributed this conservative financial strategy to AIP's partners, mostly CEOs who had been unseated from their previous companies through hostile takeovers financed by debt. [7]

AIP focused on raising a US$400 million private equity fund that would be used to invest in American manufacturing companies. [9] By June 1993 the firm included the former CEOs of Goodyear Tire and Rubber Company, Mead Corporation, and the Stanley Works and had purchased five companies with a collective annual revenue of US$500 million. [7]

In 1993, the firm purchased the Sweetheart Holdings, Inc., then the largest producer of disposable cups, plates, and straws in the United States, [10] for US$445.6 million. Sweetheart had a negative net worth of US$121.9 million at the time, but after being acquired by AIP it returned to profitability and increased its net worth to US$100 million. By May 1995, however, it reported a small loss due to rising manufacturing costs. [11] Sweetheart merged with the Fonda Group in January 1998; although AIP retained a majority of shares, Fonda Group took over control of management. [12] Sweetheart was sold to the Solo Cup Company in December 2003. [13] By 2004, American Industrial Partners had raised over US$1 billion in equity. [14] AIP closed their fourth fund, valued at US$405 million, in August 2008. [15] A fifth fund closed at US$717.5 million in December 2011. [16]

In August 2010 the company merged Collins Industries, E-One, Halcore Group and Fleetwood Enterprises – acquired between 2007 and 2010 – to form Allied Specialty Vehicles. [17] The company was rebranded to REV Group in November 2015 [18] and was taken public in January 2017 with an IPO of US$275 million. [19] The firm consolidated Heil Trailer, Kalyn Siebert, and SERVA into the holding company EnTrans International in 2014. [20] In June 2015, it acquired Anixter's fastener business for US$380 million and rebranded it as Optimas OE Solutions. [21]

AIP's sixth investment fund closed in September 2015 at US$1.7 billion. [22] The firm purchased Canam Group, a Canadian steel manufacturer, for an estimated CA$875 million in 2017. [23] Canam was sold to the Dutil family, Caisse de dépôt et placement du Québec, and the Fonds de solidarité FTQ in 2020 for an estimated CA$840 million, although AIP retained joint control of its American subsidiaries . [24] In November 2018, General Electric (GE) sold GE Current, a manufacturer of LED lighting, to AIP for an undisclosed sum. As part of the deal, the brand retained the GE branding. [25] AIP's seventh fund closed in April 2019 at a value of US$3 billion, its largest sum to date. [26]

Investments

Investment holdings in September 2021 were:

InvestmentYearCompany descriptionRef.
Boart Longyear 2023mineral exploration
GD Energy Products2021industrial pumps [27]
AHF Products2018 hardwood flooring [28]
Ascent Aerospace2012 aerospace tooling, assembly and automation [29] [30]
Brock Group2017industrial services [31]
Canam2017structural steel systems [23]
CR Mining2018mining productivity [32]
EnTrans International2011energy and transportation [33]
Form Technologies2015precision components[ citation needed ]
GE Current 2019 LED lighting [25]
Crestview Aerospace2018aerospace/defense technical support [34]
Molycop2017mining consumables [35]
Optimas2015engineered fasteners [21]
Rand Logistics, Inc.2018bulk freight [36]
REV Group 2008specialty vehicles [17] [18]
Shape Technologies2013 waterjets [37]
The Carlstar Group2013 tires and wheels [38] [39]
Vertex Aerospace 2018aerospace and defense technical support [40]
Attindas2021 hygiene products [41]
SEACOR2021 freight transport [42]
manroland GOSS2015 printing systems [43]
Virtek2015vision and laser projection [44]
Commonwealth Rolled Products2020aluminum rolled products [45]
Orizon2020aerospace and defense parts [46]
ADDMAN Engineering2021 additive manufacturing [47]

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References

  1. ↑ "Inside advertising" . San Francisco Examiner . April 4, 1988. p. C-4. Retrieved March 21, 2020.
  2. ↑ "GE Divests Current Business to American Industrial Partners". Yahoo! Finance . April 3, 2019. Archived from the original on April 3, 2019. Retrieved March 21, 2020.
  3. ↑ "Private Equity Investment Team". American Industrial Partners. 24 June 2015. Archived from the original on 11 January 2020. Retrieved March 22, 2020.
  4. ↑ "Ted Rogers". Theatre for a New Audience. 2010-12-21. Retrieved 2021-08-25.
  5. ↑ "Top 50 Leaders in the Middle Market" (PDF). Top PE Firms. p. 34. Retrieved March 21, 2020.
  6. ↑ "Electronics CEO to resign" . Indianapolis News . April 11, 1988. p. A-11. Retrieved March 16, 2020.
  7. 1 2 3 4 Johnson, Ian (June 13, 1993). "Sweetheart's new suitor AIP brings its back-to-basics approach to deal". Baltimore Sun . Retrieved March 16, 2020.
  8. ↑ Flanigan, James (December 16, 1990). "Why the Trend to Deflation Is Encouraging" . The Los Angeles Times . p. D-7. Retrieved March 16, 2020.
  9. ↑ "Former RCA executive named president of Want" . Courier-Post . August 24, 1989. p. 9D. Retrieved March 21, 2020.
  10. ↑ Hetrick, Ross (May 29, 1993). "Investor group buys Sweetheart" . Baltimore Sun . p. 18C. Retrieved March 21, 2020.
  11. ↑ Clark, Kim (May 26, 1995). "Rising costs cut profits at Sweetheart" . Baltimore Sun . p. 12C. Retrieved March 21, 2020.
  12. ↑ "Sweetheart Cup, Fonda Group to merge". Washington Post. January 2, 1998. Retrieved March 22, 2020.
  13. ↑ Emerson, LaTina (December 23, 2007). "Augusta factory turns 60". Augusta Chronicle . Retrieved March 22, 2020.
  14. ↑ Bohman, Jim (January 13, 2004). "Stolle has new owner" . Dayton Daily News . p. D1, D4. Retrieved March 21, 2020.
  15. ↑ Meikle, Brad (October 7, 2008). "NY Shop Buys Printing Equipment Co. From Morgenthaler". Buyouts. Retrieved March 22, 2020.
  16. ↑ "AIP buys Hampson Industries units". New York Business Journal. November 20, 2012. Archived from the original on November 29, 2014. Retrieved March 22, 2020.
  17. 1 2 "AIP Rolls Up Four Portfolio Companies". Pitchbook. August 26, 2010. Retrieved March 22, 2020.
  18. 1 2 Rose, Susan (February 9, 2017). "In High Gear: REV Group Continues the Legacy of Two Bus Brands". Chauffeur Driven Magazine. Retrieved March 22, 2020.
  19. ↑ Schuyler, David (January 27, 2017). "REV Group launches IPO, closes 14% higher than priced in first trading day". Milwaukee Business Journal. Archived from the original on January 30, 2017. Retrieved March 22, 2020.
  20. ↑ "EnTrans International LLC adds Polar and Jarco to family of brands". Bulk Transporter. February 6, 2018. Retrieved March 28, 2020.
  21. 1 2 "AIP Closes $380M Purchase of Anixter's Fasteners Business | PitchBook". Pitchbook. June 3, 2015. Archived from the original on September 5, 2018. Retrieved March 24, 2020.
  22. ↑ Russell, Michelle (September 1, 2016). "Gerber Technology sold to private equity firm AIP". Just Style. Archived from the original on November 8, 2016. Retrieved March 22, 2020.
  23. 1 2 Van Praet, Nicolas (April 27, 2017). "Quebec's Dutil family taking Canam Group private". The Globe and Mail . Archived from the original on June 5, 2017. Retrieved March 22, 2020.
  24. ↑ Street, F. P. (January 20, 2020). "Quebec's Dutil family buys back steelmaker Canam Group from U.S. private equity firm". Financial Post. National Post. Archived from the original on January 21, 2020. Retrieved March 22, 2020.
  25. 1 2 "The dismantling of GE continues: It is selling yet another business". Hartford Business Journal. November 6, 2018. Retrieved March 22, 2020.
  26. ↑ Garcia, Luis (April 1, 2019). "American Industrial Partners Collects $3 Billion for Its Largest Fund". Wall Street Journal . Archived from the original on April 2, 2019. Retrieved March 21, 2020.
  27. ↑ "American Industrial Partners to Acquire High Pressure Solutions Segment of Ingersoll Rand". Energy Industry Review. 2021-04-06. Retrieved 2021-09-08.
  28. ↑ Gordon, Haley (February 22, 2020). "Union urging AHF plant workers to reject contract | News, Sports, Jobs - The Intermountain". The Inter-Mountain . Archived from the original on February 29, 2020. Retrieved March 24, 2020.
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  31. ↑ Murphy, Bill (June 15, 2018). "No. 10 private: Brock Group plans for future under new ownership". Houston Chronicle . Archived from the original on June 16, 2018. Retrieved March 24, 2020.
  32. ↑ Thompson, Sarah; Macdonald, Anthony (July 5, 2018). "Back to the future: global PE giant buys Quadrant asset". Australian Financial Review. Retrieved March 24, 2020.
  33. ↑ "EnTrans International links three manufacturers to offer broader product portfolio for the oilfield". Bulk Transporter. January 23, 2015. Retrieved March 24, 2020.
  34. ↑ "American Industrial Partners to Buy L3's Vertex Aerospace Business Through $540M Cash Deal". GovCon Wire. Retrieved 2021-09-08.
  35. ↑ Thompson, Sarah; MacDonald, Anthony; Moullakis, Joyce (November 3, 2016). "Arrium's Moly-Cop sold to American Industrial Partners: sources". Australian Financial Review. Archived from the original on October 19, 2018. Retrieved March 24, 2020.
  36. ↑ Juliano, Michael (January 30, 2018). "Rand Logistics files Chapter 11 owing $260m to 600 creditors | TradeWinds". TradeWinds. Retrieved March 24, 2020.
  37. ↑ Hagerty, James R. (November 27, 2014). "American Industrial Partners Bets on Water Jets". Wall Street Journal . Archived from the original on September 9, 2018. Retrieved March 24, 2020.
  38. ↑ "CTP changes name to Carlstar Group - Commercial Business - Modern Tire Dealer". Modern Tire Dealer. March 5, 2015. Retrieved March 24, 2020.
  39. ↑ Cleveland, Christina (February 8, 2017). "Tire manufacturer Carlstar Group announces expansion, new jobs in Aiken County". Aiken Standard . Archived from the original on March 19, 2020. Retrieved March 19, 2020.
  40. ↑ Biesecker, Cal (July 5, 2018). "American Industrial Partners Completes Acquisition Of Vertex Aerospace From L3 -". Defense Daily. Retrieved March 24, 2020.
  41. ↑ "Domtar Corporation Announces Sale of Personal Care Business to American Industrial Partners for $920 Million". DOMTAR Newsroom. Retrieved 2021-09-08.
  42. ↑ "American Industrial Partners Extends SEACOR Tender Offer". www.businesswire.com. 2021-04-07. Retrieved 2021-09-08.
  43. ↑ Partners, American Industrial. "American Industrial Partners Acquires Goss International from Shanghai Electric". www.prnewswire.com. Retrieved 2021-09-08.
  44. ↑ "AIP Invests in Gerber Technology". www.gerbertechnology.com. Retrieved 2021-09-08.
  45. ↑ "Our History | Commonwealth" . Retrieved 2021-10-11.
  46. ↑ "About". Orizon. Retrieved 2021-10-11.
  47. ↑ Esaulov, Anton. "Home". ADDMAN Engineering. Retrieved 2021-10-11.
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