Bahrain’s Investcorp, global provider and manager of alternative investment products and, the Riverside Company, a US-based global private equity investment firm, have announced the successful sale of its key unit Arrowhead Engineered Products (AEP).
The companies sold their AEP stake to Genstar, a US-based private equity firm that invests in leading middle-market companies. The deal’s financial details were not disclosed.
AEP, founded in 1985, is a leading global engineer and omnichannel distributor of non-discretionary, proprietary-branded aftermarket replacement parts for outdoor power equipment, power-sports, specialized vehicles, agriculture, and other diverse end markets.
Riverside acquired a majority stake in AEP in 2015, and in the following year, Investcorp acquired a significant minority stake in the AEP. Partnering with management, Riverside and Investcorp focused on several value development strategies that resulted in over 5x revenue growth of the platform.
Brad Roberts Co-Chief Investment Officer Riverside
“We are proud of what we have accomplished with AEP management during our successful partnership. With the group, we identified an opportunity to invest in a differentiated platform with exposure to attractive end markets and accelerated growth through organic and inorganic initiatives.”
During its investment period, and working closely with management and the Investcorp team, Riverside has aided to exponentially grow AEP’s eCommerce presence, expanded its international footprint, enhanced the sales and marketing organizations and entered new end markets.
Mr. Yusef Al Yusef, the managing partner of Investcorp’s private wealth platform, said, “We have worked closely with Riverside and AEP, to expand and strengthen the platform to better serve customers in the off-road end markets space in North America and Europe.”
Investcorp, which has been on a deal-making run in recent quarters, made five new private equity investments in the US and Europe, two add-on acquisitions and 11 investments in businesses across Asia in 12-months to June end.
