GRAHAM PARTNERS: 3811 West Chester Pike | Bldg 2, Ste 200 | New tow n Square, PA 19073 | P: 610.408.0500 | F: 610.408.0600...
GRAHAM PARTNERS: 3811 West Chester Pike | Bldg 2, Ste 200 | Newtown Square, PA 19073 | P: 610.408.0500 | F:
610.408.0600 |...
GRAHAM PARTNERS: 3811 West Chester Pike | Bldg 2, Ste 200 | Newtown Square, PA 19073 | P: 610.408.0500 | F:
610.408.0600 |...
of 3

Press release- addon( updated with ISI recap)

Published on: Mar 4, 2016
Source: www.slideshare.net


Transcripts - Press release- addon( updated with ISI recap)

  • 1. GRAHAM PARTNERS: 3811 West Chester Pike | Bldg 2, Ste 200 | New tow n Square, PA 19073 | P: 610.408.0500 | F: 610.408.0600 | w w w.grahampartners.net G R AH AM P ART N ERS PARTNERSHIP INDUSTRIAL INNOVATION OPERATIONAL EXCELLENCE GRAHAM PARTNERS ADDS IT UP Portfolio Companies TransAxle, Line-X, and NDS Complete Add-ons PHILADELPHIA, [June 14, 2013] – Graham Partners, a private investment firm focused on investing in businesses with advanced manufacturing know-how, innovative product development capabilities, and strong growth potential, is pleased to announce the successful acquisition of accretive add-ons for portfolio companies, TransAxle, Line-X, and NDS. TransAxle, one of the largest East Coast remanufacturers and rebuilders of transmissions, differentials, hydraulic pumps, and other specialized components for medium and heavy-duty trucks and off-highway equipment, recently announced its acquisition of Adelman’s Truck Parts of Cleveland, a regional remanufacturer of transmission and differentials for half-ton and larger trucks. This acquisition denotes a clear win-win situation for both TransAxle and Adelman’s. David Olsen, CEO of TransAxle LLC said, “This acquisition fits perfectly with TransAxle’s growth strategy. The addition of Cleveland to our existing networks gives us a total of 23 branches. This new branch location will enhance our ability to serve local, regional, or national customers with the full complement of TransAxle products.” Carl Adelman, President of Adeleman’s Truck Parts, was equally pleased with the acquisition. He stated, “I believe this will allow the Cleveland team to reach their full potential.” Aside from the obvious growth in customer base, TransAxle will inherit an experienced staff, new inventory, and greater warehouse capacity. Furthermore, acquiring Adelman will strongly improve same or next day services as far west as Illinois and will give TransAxle a strong presence in a geographical location with an increasing population. TransAxle, however, is not the only Graham Partners portfolio company that is looking to expand. Moreover, Line-X became the beneficiary of another successful add-on. Line-X, the industry leader in truck bed protection, is a global provider of specialty protective coatings primarily used as spray-on pick-up truck bedliners and in high performance industrial applications. The protective coating company recently closed the acquisition of American Aftermarket Group (“AAG”). AAG is a business-to-business marketing,
  • 2. GRAHAM PARTNERS: 3811 West Chester Pike | Bldg 2, Ste 200 | Newtown Square, PA 19073 | P: 610.408.0500 | F: 610.408.0600 | www.grahampartners.net promotional, and consulting group that connects automotive aftermarket supplier with retailer members nationwide. The acquisition provides the potential to add over 300 Line-X franchisees to the AAG supplier network, as well as an opportunity to diversify aftermarket accessory offering. This will allow Line-X to establish better terms with manufacturers and suppliers. Line-X will also retain key AAG management team members post- acquisition. Additionally, NDS, an industry leader in storm water management, efficient irrigation and flow management as well as a Graham portfolio company, recently completed the acquisition of DrainTech product line from Advanced Drainage Systems Inc. (“ADS”). ADS is the world’s largest producer of HDPE corrugated plastic pipe, which are manufactured and distributed through a global network of 53 plants and 24 distribution centres. The DrainTech product line was purchased for was $5.9 MM with no liabilities assumed, which equates to ~5x EBITDA pre-synergies. When asked about the acquisition, Mike Gummeson, President and CEO of NDS said, “We are excited about the opportunities this acquisition presents to us and to our customers.” Finally, Graham Partners recently closed a lucrative dividend recap deal with its portfolio company Infiltrator Systems Inc. (“ISI”). ISI’s new credit facility is a $255MM “covi-loose, upside down unitranche”, which allows for a $73.1MM dividend distribution. Approximately $39.1MM of the dividend distribution is allocable to Graham II and $14.0MM to Graham II Overflow. This revamped credit facility will look to generate $10-20MM in cash by the end of the year. In conclusion, these latest activities by TransAxle, Line-X, NDS, and ISI exemplify the sustained growth, increased profitability, and lasting stability that Graham Partners portfolio companies continuously achieve. About Graham Partners (www.grahampartners.net): Graham Partners is a private investment firm focused on investing in businesses with proprietary technologies, advanced manufacturing know-how, innovative product development capabilities and strong growth potential. Graham Partners targets companies with EBITDA between $5 million and $50 million, and will invest in smaller companies to the extent they complement one or more of its other holdings. Since the firm's founding in 1988, Graham Partners has closed over sixty acquisitions, joint ventures, financings and divestitures. Today, the committed capital of the Graham Partners funds and Graham led co-investments totals approximately $1.7 billion. Investors include university endowments, charitable foundations, financial institutions and private investors. Based in suburban Philadelphia, the firm has access to extensive operating resources and industrial expertise as a member of The Graham Group, an alliance of independently owned and operated industrial and investment management businesses that share in the common legacy of entrepreneur Donald C. Graham.
  • 3. GRAHAM PARTNERS: 3811 West Chester Pike | Bldg 2, Ste 200 | Newtown Square, PA 19073 | P: 610.408.0500 | F: 610.408.0600 | www.grahampartners.net FOR FURTHER INFORMATION CONTACT: Josh Wilson (jwilson@grahampartners.net) Rob Newbold (rnewbold@grahampartners.net) Christina Morin (cmorin@grahampartners.net) Tel: (610) 408-0500 / Fax: (610) 408-0600 www.grahampartners.net Legal Disclaimer This press release is for informational purposes and is not an offer to sell, or a solicitation of an offer to buy, securities in the United States or elsewhere. Graham Partners is not utilizing this release to provide investment or other advice, and no information disclosed therein is to be relied upon for the purpose of making investment decisions. Any transactions described are included as representative transactions and are not necessarily reflective of overall performance.

Related Documents