Riverside Revs Deal Engine with Arrowhead

The Riverside Co. has invested in Arrowhead Electrical Products, which provides aftermarket replacement parts for vehicles. The Cleveland and New York-based private equity firm also announced deals for animal health companies ISL Animal Health and NJ Phillips Pty Ltd. as add-ons for Simcro Ltd. on Sept. 1.

Blaine, Minnesota-based Arrowhead sells starters, clutches, driveline components, alternators, generators, suspension parts, gasket kits and other parts to the power sports, agricultural and industrial, outdoor power equipment, marine and automotive industries.

The company has made several acquisitions since it was acquired by Chicago PE firm Pfingsten Partners in October 2011: Outdoor Power Xtreme Equipment, Winderosa Manufacturing and Distributing Company USA Inc., Boston Auto Electric, Atlantic Quality Parts, All Balls Racing, Superior Distribution Center Inc., Hi-Level Enterprises Ltd. Riverside says it plans to continue to make add-on acquisitions.  

Riverside makes the Arrowhead acquisition as deals for automotive-related components businesses thrive. Recent acquisitions have come from ITT Corp. (NYSE: ITT) and Antifreeze-maker Old World Industries LLC, which purchased Wolverine Automotive Holdings Inc. and Eiko Global LLC, respectively.

Ares Capital Corp. and Varagon Capital Partners LP provided financing for the deal, and Jones Day acted as Riverside’s legal counsel. Jefferies was Arrowhead’s adviser.

Also announced Sept. 1, Riverside portfolio company Simcro picked up the assets of ISL Animal Health and shares of NJ Phillips. The acquisitions allow the Hamilton, New Zealand-based animal health company to expand and become and end-to-end designer, manufacturer and distributor of animal health delivery systems used to deliver parasiticides, vaccines, antibiotics and other medications.  

Both targets are units of Forlong & Maisey Ltd., a New Zealand-based holding company. Simcro was Riverside’s first investment in New Zealand, which it made in July 2013.

The private equity firm has made a handful of other deals lately. In June, the firm agreed to sell Emergency Communications Network to Veritas Capital. Before that, Riverside invested in traffic management business Area Wide Protective. The firm won Mergers & Acquisitions M&A Mid-Market Seller of the Year award for 2014 after making 19 exits.

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