Co-Investor Ready to Fuel Growth at Arrowhead

Investcorp Takes Minority Stake in The Riverside Company’s AEP Platform

BLAINE, Minn.--()--Arrowhead Electronic Products (“AEP” or the “Company”), a fast-growing supplier of aftermarket replacement parts for a wide variety of applications, today announced that Investcorp, a global provider and manager of alternative investment products, has taken a significant minority stake in the Company. Investcorp joins majority investor The Riverside Company (“Riverside”) in backing AEP, signaling strong confidence in its performance and growth trajectory.

“Investcorp has deep experience in the motorized parts industry that is invaluable for AEP’s next phase. Their network, capital and capabilities will help us execute on our ambitious growth plans,” said Jim Wisnoski, CEO of AEP. “We’re proud to have attracted this high-quality investor to join Riverside in supporting our strategies. The backing of these two premier investment firms is clear affirmation of our business, and will allow us to capitalize on opportunities more quickly and effectively.”

David Tayeh, Managing Director and Head of Corporate Investment North America at Investcorp, stated, “AEP has proven to be a market leader in the mission-critical, replacement parts sector. We look forward to working alongside this top-notch management team to enhance and accelerate the growth in new products and to expand into new markets. We are in agreement with Riverside on the strategic priorities, and we look forward to working together to increase AEP’s footprint.”

Suzy Kriscunas, Managing Partner at The Riverside Company said, “Riverside has long respected Investcorp, and this partnership is an ideal fit to meet our long-term goals for AEP. The additional capital and talent this transaction brings will help us deliver on these initiatives to make AEP a stronger company that provides exceptional solutions to customers.”

AEP has had strong performance since Riverside’s investment in September 2015 and this latest partnership will allow for continued added products, customers and capabilities both through organic growth and strategic add-ons.

On November 22nd, the Company announced it had signed a definitive agreement to acquire the Stens and JThomas brands from the Ariens Company. The strategic acquisition is a natural market extension for the Company, further expanding AEP’s presence for aftermarket parts in the attractive Outdoor Power and Equipment segment. The acquisition represents the tenth add-on for AEP in the last five years and is expected to close in the next couple weeks.

Stens, based in Jasper, Indiana, distributes aftermarket replacement parts to the outdoor power equipment, golf, and industrial end markets. Its offerings include non-discretionary, high-wear parts, including engine components, blades, chains, belts, and electrical components for use in mowers, chainsaws, snow blowers, trimmers, and other applications.

The Company plans to continue to look for additional acquisition opportunities for consolidation and is specifically seeking to deepen its market share in the agriculture, industrial and outdoor power equipment segments.

AEP currently offers more than 75,000 non-discretionary replacement parts for a broad range of outdoor power, agricultural, construction, on-highway truck, automotive, marine and powersports applications.

About Arrowhead Electrical Products

Based in Blaine MN - Arrowhead Electrical Products is a supplier of non-discretionary, mission-critical, aftermarket replacement parts for a wide variety of applications, across the powersports, outdoor power equipment, agricultural & industrial, marine, and heavy-duty and automotive end-markets. With distribution and sourcing locations in North America, Europe and Asia, Arrowhead Electrical Products employees service over 10,000 customers on a daily basis. Visit www.arrowheadep.com for more information

About The Riverside Company

The Riverside Company is a global private equity firm focused on acquiring and investing in growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 450 transactions. The firm’s international portfolio includes more than 80 companies. (http://www.riversidecompany.com or http://www.riversideeurope.com)

About Investcorp

Investcorp is a leading provider and manager of alternative investment products. Investcorp has three business areas: corporate investment, real estate, and global hedge funds. As at December 31, 2015, the Investcorp Group had $10.7 billion in total assets under management ('AUM'), including assets managed by third party managers and assets subject to a non-discretionary mandate where Investcorp receives fees calculated on the basis of AUM. Further information, including our most recent periodic financial statements, which details our assets under management, is available at www.investcorp.com.

Contacts

The Riverside Company
Keith Davisson
216-535-1777
kdavisson@riversidecompany.com

Release Summary

Arrowhead Electronic, a fast-growing supplier of aftermarket replacement parts for a wide variety of applications, announced that Investcorp has taken a significant minority stake in the Company.

Contacts

The Riverside Company
Keith Davisson
216-535-1777
kdavisson@riversidecompany.com