Bahrain — The Riverside Company (Riverside), a global private investor focused on the smaller end of the middle market, and Investcorp, a global provider and manager of alternative investment products, have sold Arrowhead Engineered Products (AEP) to Genstar, a private equity firm focused on investments in targeted segments of the financial services, healthcare, industrials and software industries. Specific terms of the transaction were not disclosed.
Founded in 1985, AEP is a leading global engineer and omni-channel distributor of non-discretionary, proprietary-branded, aftermarket replacement parts for outdoor power equipment, powersports, specialty vehicles, agriculture and other diverse end markets. AEP leverages data and digital capabilities to design and engineer more than 10,000 new SKUs per year using a diverse global supplier base to provide the highest quality aftermarket replacement parts to end users. Through its strategic distribution footprint across North America and Europe, AEP delivers more than 380,000 SKUs through dealers, distributors, retailers, repair shops and e-commerce channels.
Riverside acquired a majority investment in AEP in 2015 and Investcorp subsequently acquired a significant minority stake in AEP in 2016 alongside the firm. Partnering with management, Riverside and Investcorp focused on several value creation initiatives that resulted in over 5x revenue growth of the platform.
“We are proud of what we have accomplished with AEP management during our successful partnership,” said Riverside Co-Chief Investment Officer (RCAF) Brad Roberts. “With AEP, we identified an opportunity to invest in a differentiated platform with exposure to attractive end markets and accelerated growth through organic and inorganic initiatives. During our investment period, and working closely with management and the Investcorp team, we exponentially grew AEP’s eCommerce presence, expanded its international footprint, enhanced the sales and marketing organizations and entered new end markets.”
“Riverside and Investcorp were great investment partners that worked alongside us to expand the platform while significantly investing in our management team and infrastructure to position us for long-term growth,” said AEP CEO John Mosunic.
AEP is another example of Riverside’s commitment to investing in the Specialty Manufacturing & Distribution industry. To date, the firm has invested in more than 250 specialty manufacturing and value-added distribution companies globally across a wide variety of end markets. Investcorp has a long history of investing across Specialty Distribution sectors through several platform investments.
Yusef Al Yusef, managing partner of Investcorp’s private wealth platform, said “We have worked closely with Riverside and AEP, to expand and strengthen the platform to better serve customers in the off-road end markets space in North America and Europe. We look wish the company all the success as it moves forward with its growth journey”.
Working with Roberts on the deal for Riverside were Principal Daniel Grinnan, Associate Abeer Irfan, Operating Partner Steve Stubitz and Operating Finance Executive Rob Carraway. Senior Partner Anne Hayes led the capital markets initiatives throughout the investment period. The Investcorp deal team included Head of Private Equity – North America, David Tayeh, Managing Director Steve Miller, Managing Director Mike Emmet, Principal Raj Sheth and Vice President Jiachang Xiang.
Jefferies, Baird, Jones Day and Alvarez & Marsal advised Riverside, Investcorp and AEP on this transaction.
About Investcorp
Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. Since our inception in 1982, we have focused on generating attractive returns for our clients while creating long-term value in our investee companies and for our shareholders as a prudent and responsible investor.
We invest a meaningful portion of our own capital in products we offer to our clients, ensuring that our interests are aligned with our stakeholders, including the communities that we operate within, towards driving sustainable value creation. We take pride in partnering with our clients to deliver tailored solutions for their needs, utilizing a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative, entrepreneurial approach.
Investcorp has today presence in 12 countries across the US, Europe, GCC and Asia, including India, China and Singapore. As of June 30, 2021, Investcorp Group had US $37.6 billion in total AUM, including assets managed by third party managers, and employed approximately 430 people from 45 nationalities globally across its offices. For further information, visit www.investcorp.com and follow us @Investcorp on LinkedIn, Twitter and Instagram.
Media Contacts:
Investcorp
Nada Abdulghani
+17515467 973
nabdulghani@investcorp.com
About The Riverside Company
The Riverside Company is a global private equity firm focused on investing in growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has made more than 800 investments. The firm's international private equity and structured capital portfolios include more than 130 companies.
About Arrowhead Engineered Products (AEP)
Founded in 1985, Arrowhead Engineered Products is a global distributor of non-discretionary, mission-critical aftermarket replacement parts for diverse off-road end markets. AEP serves more than 70,000 dealers, distributors, and repairs shops globally. AEP is headquartered in Blaine, Minnesota and has 20 distribution centers across North America and Europe with sourcing offices in India and China.
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