M&A Deal Summary

Genstar Capital and Penfund Acquire Arrowhead Engineered Products

On August 31, 2021, private equity firm Genstar Capital and mezzanine finance firm Penfund acquired distribution company Arrowhead Engineered Products from The Riverside Company, Antares Capital, Investcorp and Penfund

Acquisition Highlights
  • This is Genstar Capital’s 3rd and Penfund’s 7th transaction in the Distribution sector.
  • This is Genstar Capital’s 91st and Penfund’s 14th transaction in the United States.
  • This is Genstar Capital’s 3rd and Penfund’s 2nd transaction in Minnesota.

M&A Deal Summary

Date 2021-08-31
Target Arrowhead Engineered Products
Sector Distribution
Buyer(s) Genstar Capital
Penfund
Sellers(s) The Riverside Company
Antares Capital
Investcorp
Penfund
Deal Type Secondary Buyout

Target

Arrowhead Engineered Products

Blaine, Minnesota, United States
Arrowhead Engineered Products is a specialty supplier and distributor of aftermarket replacement parts for a wide variety of equipment types across the outdoor power equipment, Powersports, agricultural, industrial and automotive industries. Arrowhead Engineered Products was founded in 1986 and is based in Blaine, Minnesota.

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Buyer(S) 2

Buyer

Genstar Capital

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 49.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Genstar Capital is a private equity firm that seeks investments in life science, healthcare, medical products, industrial technology, software, financial services, packaging, building materials, manufacturing, and business services companies. Genstar looks to invest between $50 and $400 million of equity capital in businesses valued up to $1 billion. Target transaction situations include control-oriented leveraged buyouts of corporate divisions, privately held businesses or public companies, minority investments in privately held businesses or public companies, ownership restructurings/recapitalizations of privately held businesses, growth equity financings, partnerships with other strategic or financial buyers, and take privates. Genstar Capital was formed in 1988 and is based in San Francisco, California.


DEAL STATS #
Overall 99 of 109
Sector (Distribution) 3 of 3
Type (Secondary Buyout) 42 of 49
State (Minnesota) 3 of 3
Country (United States) 91 of 101
Year (2021) 6 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-07-07 Foreside

Portland, Michigan, United States

Foreside is a provider of regulatory compliance and distribution solutions to clients in the investment management industry. The Company delivers outsourced services to investment advisers and broker-dealers, including the financial products they manage or distribute. Foreside was formed in 20005 and is based in Portland, Michigan.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-11-17 Foreside

Portland, Michigan, United States

Foreside is a provider of regulatory compliance and distribution solutions to clients in the investment management industry. The Company delivers outsourced services to investment advisers and broker-dealers, including the financial products they manage or distribute. Foreside was formed in 20005 and is based in Portland, Michigan.

Sell -
Buyer

Penfund

Toronto, Ontario, Canada

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1979
PE ASSETS 2.7B CAD
Size Large
Type Sector Agnostic
DESCRIPTION

Penfund is a private investment firm that provides equity, junior capital, and alternative financing to Canadian-based middle-market companies with EBITDA of at least C$20 million. Penfund can commit up to C$225 million per transaction. Penfund does not have any industry preferences and its investments are generally used to support growth needs, recapitalization, shareholder liquidity, acquisitions, and buyouts. Penfund was formed in 1979 and is based in Toronto.


DEAL STATS #
Overall 28 of 28
Sector (Distribution) 7 of 7
Type (Secondary Buyout) 12 of 12
State (Minnesota) 2 of 2
Country (United States) 14 of 14
Year (2021) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-06-25 Mister Car Wash

Tucson, Arizona, United States

Mister Car Wash operates car washes and lube centers across the US. Mister Car Wash was founded in 1996 and is headquartered in Tucson, Arizona.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-02-10 Forefront Dermatology

Manitowoc, Wisconsin, United States

Forefront Dermatology delivers medical dermatology, fully integrated surgery and pathology services through more than 130 clinics across 16 U.S. states. Forefront Dermatology was formed in 1980 and is based in Manitowoc, Wisconsin.

Sell -

Seller(S) 4

SELLER

The Riverside Company

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 5.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Riverside Company is a global private equity firm that seeks investments in profitable lower middle-market companies valued under $400 million. Riverside looks to invest in growth businesses headquartered in North America, Europe, and Asia (primarily Japan and South Korea), that have been in operation for at least five years. Riverside targets investments in a wide array of industries including distribution, automotive, healthcare, education, manufacturing, software, consumer services, plastics, publishing, food, communications, marine, and business services. Riverside was formed in 1988 and is based in New York City.


DEAL STATS #
Overall 171 of 190
Sector (Distribution) 4 of 5
Type (Secondary Buyout) 67 of 77
State (Minnesota) 4 of 4
Country (United States) 123 of 133
Year (2021) 7 of 12
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-08-19 Corporate Visions

Reno, Nevada, United States

Corporate Visions is a marketing and sales messaging, tools and training company that helps global B2B companies create more sales opportunities, win more deals and increase sales profitability by improving the conversations salespeople have with customers. Companies engage Corporate Visions in three areas: developing differentiated messages that concentrate on customer needs; deploying tools that support critical steps in the buying cycle; and delivering sales skills training that enables salespeople to capture more value. Corporate Visions was formed in 1984 and is based in Reno, Nevada.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-09-23 Y International

Saitama, Japan

Y. International is a high-end, sports enthusiast bike retail chain in Japan. It is a big box retailer of bikes, frames, components, maintenance and fitting services, accessories, and apparel for high-end cycling enthusiasts including road bikers, triathletes, mountain bikers, and cyclocross racers. Y International is based in Saitama, Japan.

Sell -
SELLER

Antares Capital

Miami, Florida, United States

Investor Investor


Category Private Equity Firm
Founded 1993
Size Small
Type Sector Agnostic
DESCRIPTION

Antares Capital is a private investment group that targets growth capital financings as well as management buyout opportunities. The Firm focuses on investments based in the Southeast US and Texas. Prospective companies generally have proven business models, modest capital requirements for growth, and operate in large and growing markets. The Firm looks to commit $500k to $5 million per investment. Antares will not invest in real estate, mineral exploration, distributors, franchisees, or project financings. Antares was founded in 1993 and is based in Miami, Florida.


DEAL STATS #
Overall 38 of 44
Sector (Distribution) 2 of 2
Type (Secondary Buyout) 11 of 13
State (Minnesota) 3 of 3
Country (United States) 37 of 43
Year (2021) 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-07-26 Medallia

Pleasanton, California, United States

Medallia is a provider of cloud based platform captures billions of experience signals across interactions including all voice, video, digital, IOT, social media and corporate messaging tools. Medallia was founded in 2001 and is based in Pleasanton, California.

Buy $6.4B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-09-13 AEM

San Diego, California, United States

AEM designs and produces mission-critical, passive circuit protection components through two divisions. AEM’s A&D division provides advanced, high-reliability fuses, ferrite chip beads, and tin whisker mitigation products for satellite, defense, and aerospace applications. AEM’s Commercial division provides high-end SolidMatrix® and AirMatrix® surface mount fuses and inductive components for commercial applications, including IT, visual display, automotive and EV, power tools, lithium battery, 5G, IoT, security devices, and telecom. AEM is based in San Diego, California.

Buy -
SELLER

Investcorp

New York, New York, United States

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1982
PE ASSETS 53.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Investcorp is a global investment group focused on a variety of investment disciplines. Practice areas include private equity in North America and Western Europe, hedge funds, US real estate, technology investments, and Middle Eastern private equity. Within North America/Europe private equity, Investcorp targets market leaders with proven track records. It looks to invest $15 to $50 million in companies with revenues of $10 to $250 million. Investcorp's technology group sponsors growth-oriented control investments in the tech sector. Investcorp's Middle East practice focuses on buyout/build opportunities in North Africa and the Gulf Region. Target sectors include services, infrastructure, manufacturing, and energy. Investcorp was formed in 1982 and is based in Manama, Bahrain.


DEAL STATS #
Overall 101 of 106
Sector (Distribution) 7 of 7
Type (Secondary Buyout) 33 of 36
State (Minnesota) 1 of 1
Country (United States) 61 of 62
Year (2021) 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-07-13 Hydrasun

Aberdeen, United Kingdom

Hydrasun is a provider of fluid connectors, hoses, fittings, instrumentation, process control products and associated services to the oil and gas industry. Hydrasun was founded in 1976 and is based in Aberdeen, United Kingdom.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-12-16 RESA Power

Houston, Texas, United States

RESA Power is a provider of high-end, mission-critical electrical system services and products for industrial, commercial, institutional, government, and utility end-users across North America. The technicians and engineers at RESA are experts in testing and servicing transformers, relays, breakers and other key components of power distribution and control systems. It also provides quick turn-around custom manufactured or retrofit switchgear & breaker solutions and maintains an extensive inventory of obsolete and hard-to-find components. RESA Power was formed in 1928 and is based in Houston, Texas.

Buy -
SELLER

Penfund

Toronto, Ontario, Canada

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1979
PE ASSETS 2.7B CAD
Size Large
Type Sector Agnostic
DESCRIPTION

Penfund is a private investment firm that provides equity, junior capital, and alternative financing to Canadian-based middle-market companies with EBITDA of at least C$20 million. Penfund can commit up to C$225 million per transaction. Penfund does not have any industry preferences and its investments are generally used to support growth needs, recapitalization, shareholder liquidity, acquisitions, and buyouts. Penfund was formed in 1979 and is based in Toronto.


DEAL STATS #
Overall 17 of 19
Sector (Distribution) 4 of 4
Type (Secondary Buyout) 5 of 6
State (Minnesota) 1 of 1
Country (United States) 8 of 10
Year (2021) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-06-25 Mister Car Wash

Tucson, Arizona, United States

Mister Car Wash operates car washes and lube centers across the US. Mister Car Wash was founded in 1996 and is headquartered in Tucson, Arizona.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-02-10 Forefront Dermatology

Manitowoc, Wisconsin, United States

Forefront Dermatology delivers medical dermatology, fully integrated surgery and pathology services through more than 130 clinics across 16 U.S. states. Forefront Dermatology was formed in 1980 and is based in Manitowoc, Wisconsin.

Sell -