Genstar’s Acquisition of Arrowhead Engineered Products from The Riverside Company

Jefferies, Baird, Jones Day and Alvarez & Marsal advised the Riverside Company.

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.

The Jones Day team was led by Jason Grove (Picture) and Kevin Samuels.

 

Involved fees earner: Jason Grove – Jones Day; Kevin Samuels – Jones Day;

Law Firms: Jones Day;

Clients: The Riverside Company;

Author: Martina Bellini