American Industrial Partners Explained

American Industrial Partners
Type:private company
Industry:financial services
Founded:[1]
Founders:-->
Hq Location:450 Lexington Avenue
Hq Location City:New York City
Hq Location Country:United States
Area Served:United States
Canada
Profit:-->
Profit Year:-->
Assets:~7 billion (2019)[2]
Num Employees:50 (2020)[3]

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]

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, rather than perform leveraged buyouts, AIP claims to focus on improving the profitability of acquired companies.[7] 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. 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.

AIP focused on raising a 400 million private equity fund that would be used to invest in American manufacturing companies.[8] 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 500 million.[9]

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 445.6 million. Sweetheart had a negative net worth of 121.9 million at the time, but after being acquired by AIP it returned to profitability and increased its net worth to 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 1 billion in equity.[14] AIP closed their fourth fund, valued at 405 million, in August 2008.[15] A fifth fund closed at 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 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 380 million and rebranded it as Optimas OE Solutions.

AIP's sixth investment fund closed in September 2015 at 1.7 billion.[21] The firm purchased Canam Group, a Canadian steel manufacturer, for an estimated 875 million in 2017.[22] 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 840 million, although AIP retained joint control of its American subsidiaries .[23] 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.[24] AIP's seventh fund closed in April 2019 at a value of 3 billion, its largest sum to date.[25]

Investments

Investment holdings in September 2021 were:

InvestmentYearCompany descriptionRef.
Boart Longyear2023mineral exploration
GD Energy Products2021industrial pumps[26]
AHF Products2018hardwood flooring[27]
Ascent Aerospace2012aerospace tooling, assembly and automation[28] [29]
Brock Group2017industrial services[30]
Canam2017structural steel systems
CR Mining 2018mining productivity[31]
EnTrans International2011energy and transportation[32]
Form Technologies2015precision components
GE Current2019LED lighting
Crestview Aerospace2018aerospace/defense technical support[33]
Molycop2017mining consumables[34]
Optimas2015engineered fasteners[35]
Rand Logistics, Inc.2018bulk freight[36]
REV Group2008specialty vehicles
Shape Technologies2013waterjets[37]
The Carlstar Group2013tires and wheels[38] [39]
2018aerospace and defense technical support[40]
Attindas2021hygiene products[41]
SEACOR2021freight transport[42]
manroland GOSS2015printing systems[43]
Virtek2015vision and laser projection[44]
Commonwealth Rolled Products2020aluminum rolled products[45]
Orizon2020aerospace and defense parts[46]
ADDMAN Engineering2021additive manufacturing[47]

Notes and References

  1. News: Inside advertising . March 21, 2020 . . April 4, 1988 . C-4. subscription.
  2. Web site: GE Divests Current Business to American Industrial Partners . . March 21, 2020 . April 3, 2019 . https://web.archive.org/web/20190403222257/https://finance.yahoo.com/news/ge-divests-current-business-american-134001549.html . April 3, 2019 . live .
  3. Web site: Private Equity Investment Team . American Industrial Partners . March 22, 2020 . 24 June 2015 . https://web.archive.org/web/20200111002712/https://americanindustrial.com/about/team/ . 11 January 2020 . live .
  4. Web site: 2010-12-21. Ted Rogers. 2021-08-25. Theatre for a New Audience. en.
  5. Web site: Top 50 Leaders in the Middle Market . Top PE Firms . March 21, 2020 . 34.
  6. News: Electronics CEO to resign . March 16, 2020 . . April 11, 1988 . A-11. subscription.
  7. News: Why the Trend to Deflation Is Encouraging . Flanigan . James . March 16, 2020 . . December 16, 1990 . D-7. subscription.
  8. News: Former RCA executive named president of Want . March 21, 2020 . . August 24, 1989 . 9D. subscription.
  9. Web site: Johnson . Ian . Sweetheart's new suitor AIP brings its back-to-basics approach to deal . . March 16, 2020 . June 13, 1993.
  10. News: Hetrick . Ross . Investor group buys Sweetheart . March 21, 2020 . . May 29, 1993 . 18C . subscription.
  11. News: Clark . Kim . Rising costs cut profits at Sweetheart . March 21, 2020 . . May 26, 1995 . 12C . subscription.
  12. Web site: Sweetheart Cup, Fonda Group to merge . Washington Post . March 22, 2020 . January 2, 1998.
  13. Web site: Emerson . LaTina . Augusta factory turns 60 . . March 22, 2020 . December 23, 2007.
  14. News: Stolle has new owner . Bohman . Jim . March 21, 2020 . . January 13, 2004 . D1, D4. subscription.
  15. Web site: Meikle . Brad . NY Shop Buys Printing Equipment Co. From Morgenthaler . Buyouts . March 22, 2020 . October 7, 2008.
  16. Web site: AIP buys Hampson Industries units . New York Business Journal . November 20, 2012 . March 22, 2020 . https://web.archive.org/web/20141129011434/http://www.bizjournals.com/newyork/news/2012/11/20/aip-buys-hampson-industries-units.html . November 29, 2014 . live .
  17. Web site: AIP Rolls Up Four Portfolio Companies . Pitchbook . March 22, 2020 . August 26, 2010.
  18. Web site: Rose . Susan . In High Gear: REV Group Continues the Legacy of Two Bus Brands . Chauffeur Driven Magazine . March 22, 2020 . February 9, 2017.
  19. Web site: Schuyler . David . REV Group launches IPO, closes 14% higher than priced in first trading day . Milwaukee Business Journal . March 22, 2020 . January 27, 2017 . https://web.archive.org/web/20170130064344/http://www.bizjournals.com/milwaukee/news/2017/01/27/rev-group-launches-275m-ipo-at-22-per-share.html . January 30, 2017 . live .
  20. Web site: EnTrans International LLC adds Polar and Jarco to family of brands . Bulk Transporter . March 28, 2020 . February 6, 2018.
  21. Web site: Russell . Michelle . Gerber Technology sold to private equity firm AIP . Just Style . March 22, 2020 . September 1, 2016 . https://web.archive.org/web/20161108110155/http://www.just-style.com/news/gerber-technology-sold-to-private-equity-firm-aip_id128712.aspx . November 8, 2016 . live .
  22. News: Van Praet . Nicolas . Quebec's Dutil family taking Canam Group private . . March 22, 2020 . April 27, 2017 . https://web.archive.org/web/20170605211802/https://www.theglobeandmail.com/report-on-business/quebecs-dutil-family-taking-canam-group-private/article34827891/ . June 5, 2017 . live .
  23. Web site: Street . F. P. . Quebec's Dutil family buys back steelmaker Canam Group from U.S. private equity firm . Financial Post . . March 22, 2020 . en-CA . January 20, 2020 . https://web.archive.org/web/20200121165358/https://business.financialpost.com/news/fp-street/quebecs-dutil-family-buys-back-steelmaker-canam-group-from-u-s-private-equity-firm . January 21, 2020 . live .
  24. Web site: The dismantling of GE continues: It is selling yet another business . Hartford Business Journal . March 22, 2020 . November 6, 2018.
  25. Web site: Garcia . Luis . American Industrial Partners Collects $3 Billion for Its Largest Fund . . March 21, 2020 . April 1, 2019 . https://web.archive.org/web/20190402233924/https://www.wsj.com/articles/american-industrial-partners-collects-3-billion-for-its-largest-fund-11554150432 . April 2, 2019 . live .
  26. Web site: 2021-04-06. American Industrial Partners to Acquire High Pressure Solutions Segment of Ingersoll Rand. 2021-09-08. Energy Industry Review. en-GB.
  27. Web site: Gordon . Haley . Union urging AHF plant workers to reject contract News, Sports, Jobs - The Intermountain . . March 24, 2020 . February 22, 2020 . https://web.archive.org/web/20200229055851/https://www.theintermountain.com/news/local-news/2020/02/union-urging-ahf-plant-workers-to-reject-contract/ . February 29, 2020 . live .
  28. Web site: Ascent Aerospace to employ Titomic metal 3D printing for aerospace tooling . TCT Magazine . March 12, 2020 . en-gb . March 12, 2020 . https://web.archive.org/web/20200319003022/https://www.tctmagazine.com/3d-printing-news/titomic-metal-3d-printing-tooling-ascent-aerospace/ . March 19, 2020 . live .
  29. Web site: Additive in ascendance . Aerospace Manufacturing Magazine . March 24, 2020 . February 11, 2020 . https://web.archive.org/web/20200301141540/https://www.aero-mag.com/ascent-aerospace-additive-manufacturing-hyvarc-tooling-100220/ . March 1, 2020 . live .
  30. Web site: Murphy . Bill . No. 10 private: Brock Group plans for future under new ownership . . March 24, 2020 . June 15, 2018 . https://web.archive.org/web/20180616114105/https://www.houstonchronicle.com/business/chron-100/article/No-10-private-Brock-Group-plans-for-future-12992803.php . June 16, 2018 . live .
  31. Web site: Thompson . Sarah . Macdonald . Anthony . Back to the future: global PE giant buys Quadrant asset . Australian Financial Review . March 24, 2020 . July 5, 2018.
  32. Web site: EnTrans International links three manufacturers to offer broader product portfolio for the oilfield . Bulk Transporter . March 24, 2020 . January 23, 2015.
  33. Web site: American Industrial Partners to Buy L3’s Vertex Aerospace Business Through $540M Cash Deal. 2021-09-08. GovCon Wire. en-US.
  34. Web site: Thompson . Sarah . MacDonald . Anthony . Moullakis . Joyce . Arrium's Moly-Cop sold to American Industrial Partners: sources . Australian Financial Review . March 24, 2020 . November 3, 2016 . https://web.archive.org/web/20181019210958/https://www.afr.com/street-talk/arriums-molycop-sold-to-american-industrial-partners-sources-20161103-gshbcf . October 19, 2018 . live .
  35. Web site: AIP Closes $380M Purchase of Anixter's Fasteners Business PitchBook . Pitchbook . March 24, 2020 . June 3, 2015 . https://web.archive.org/web/20180905175716/https://pitchbook.com/newsletter/aip-closes-380m-purchase-of-anixters-fasteners-business . September 5, 2018 . live .
  36. Web site: Juliano . Michael . Rand Logistics files Chapter 11 owing $260m to 600 creditors TradeWinds . TradeWinds . March 24, 2020 . January 30, 2018.
  37. Web site: Hagerty . James R. . American Industrial Partners Bets on Water Jets . . March 24, 2020 . November 27, 2014 . https://web.archive.org/web/20180909220004/https://www.wsj.com/articles/american-industrial-partners-bets-on-water-jet-technology-1417131462 . September 9, 2018 . live .
  38. Web site: CTP changes name to Carlstar Group - Commercial Business - Modern Tire Dealer . Modern Tire Dealer . March 24, 2020 . March 5, 2015.
  39. Web site: Cleveland . Christina . Tire manufacturer Carlstar Group announces expansion, new jobs in Aiken County . . March 19, 2020 . February 8, 2017 . https://web.archive.org/web/20200319003022/https://www.aikenstandard.com/news/tire-manufacturer-carlstar-group-announces-expansion-new-jobs-in-aiken/article_da34a32c-ee0e-11e6-917c-bbbdd3c01aac.html . March 19, 2020 . live .
  40. Web site: Biesecker . Cal . American Industrial Partners Completes Acquisition Of Vertex Aerospace From L3 - . Defense Daily . March 24, 2020 . July 5, 2018.
  41. Web site: Domtar Corporation Announces Sale of Personal Care Business to American Industrial Partners for $920 Million. 2021-09-08. DOMTAR Newsroom. en-US.
  42. Web site: 2021-04-07. American Industrial Partners Extends SEACOR Tender Offer. 2021-09-08. www.businesswire.com. en.
  43. Web site: Partners. American Industrial. American Industrial Partners Acquires Goss International from Shanghai Electric. 2021-09-08. www.prnewswire.com. en.
  44. Web site: AIP Invests in Gerber Technology. 2021-09-08. www.gerbertechnology.com.
  45. Web site: Our History Commonwealth. 2021-10-11. en-US.
  46. Web site: About. 2021-10-11. Orizon. en-US.
  47. Web site: Esaulov. Anton. Home. 2021-10-11. ADDMAN Engineering. en-US.

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