OUR CRITERIAAmerican Industrial Partners invests in industrial...

OUR CRITERIA

American Industrial Partners invests in industrial companies with operations in the U.S., Canada, and other developed markets and helps them achieve their full potential through the implementation of an Operating Agenda developed in collaboration with company management teams. AIP executes its strategy with flexibility to invest at all levels in the capital structure.

COMPANY PROFILE

• Manufacturing or industrial service companies with business-to-business selling relationships
• Private or publicly held
• Global in scope, with significant operations in U.S., Canada, or other developed markets
• Sales greater than $500 million for platforms
• $0 (or Negative) EBITDA to $350 million
• Enterprise value up to $2 billion

TRANSACTION TYPES

• Leveraged buyouts
• Structured preferred equity investments
• Equity bridging transactions
• Senior debt
• Structured transactions Debt with warrants
• Complex-carve outs
• Public to private
• Turnarounds (363, Article 9 and CCAA)
• Rescue financings

OPERATING CHARACTERISTICS

• Leading market position in attractive industries
• Sustainable competitive advantages, including proprietary technologies
• Basic-needs industries mission-critical to powering the industrial economy
• Large installed bases of recurring revenues
• Valuable hard assets
• Clearly identified Operating Agendas to grow earnings
• Value creation opportunities through M&A and industry consolidation
• Strategically attractive businesses with scale at exit

https://americanindustrial.com/investment-criteria/

certainly they look predatory.

history of buying into 47 companies. some of which they've exited after refining and building up business.
interesting analysis of the activity. case study:

COMPANY OVERVIEW

Brooks Instrument, LLC is a leading global provider of low flow measurement sensors, controllers, meters, and related products to a worldwide customer base in a variety of attractive end markets including chemical, pharmaceutical, LED, semiconductor, and fluid optics.

PARTNERSHIP OVERVIEW

ACQUISITION DYNAMIC / AIP DIFFERENTIATION

• Complex carve out from Emerson Electric Company
• Ability to address IP sharing issues
• New product development and technology insights

INVESTMENT RATIONALE

• Market leadership
• Deep application engineering expertise
• Proprietary global distribution with installed customer base
• Favorable industry dynamics
• High gross margins and return on capital characteristics

VALUE CREATION ACCOMPLISHMENTS

• Executed two add-ons which significantly diversified the company’s product offerings, created scale advantages, and helped to establish a cost leadership position in the industry
• Expanded addressable market through introduction of product line extensions and next generation products
• Consolidated Allen, TX manufacturing facility into Hatfield, PA resulting in an annualized savings in excess of $8 million
• Deepened penetration with existing customers, expanded into synergistic adjacent markets, and secured leading market share in a diversified set of end markets
• Implemented centralized strategic procurement function to lower material costs

EXIT

Sold to a strategic buyer in January 2012.

https://americanindustrial.com/project/brooks-instrument-case-study/.

thanks Kenji. good info. by their criteria we are as yeet too small with no revenue and they certainly want revenue.