Arrowhead Electronic Products (AEP), a fast-growing supplier of aftermarket replacement parts for a wide variety of applications, has 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 Co. in backing AEP, which the company says signals 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 in 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 Co., 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, according to the investment firm.
On Nov. 22, it had signed a definitive agreement to acquire the Stens and JThomas brands from the Ariens Co. The strategic acquisition is a natural market extension for the company, further expanding AEP’s presence for aftermarket parts in the outdoor power and equipment segment. The acquisition represents the 10th add-on for AEP in the past 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.
