Incline Equity Partners (“Incline”) is off to a strong start, announcing its first add-on acquisition for portfolio company AFC Holdings (“AFC” or the “Company”) less than three months after its initial investment. On June 17th, AFC acquired Gateway Fasteners, LLC (“Gateway”), a Pittsburgh-based fastener distributor focused on providing vendor managed inventory (“VMI”) services. The transaction closed just 82 days after Incline’s initial partnership with AFC.
“We chose Incline because of their experience and ability to help us grow, said Doug Kortyna, Vice President of Operations at AFC. “Their support in closing this first acquisition is proof that we made the right decision.”
AFC is a leading provider of supply chain management services and VMI programs to original equipment manufacturers. The Company specializes in fasteners and other essential assembly components. AFC also provides a wide array of value-added services, including kitting, packaging, assembly and other customization specific to their customers’ needs.
“This acquisition quickly positions us for further growth by strengthening our product sourcing capabilities, providing us the opportunity to cross-sell AFC’s unique capabilities and enhancing our ability to win customers in new geographies by leveraging Gateway’s geographic footprint,” said Leon Rubinov, Principal with Incline. “There are a lot of companies out there like Gateway, and we are eager to continue building AFC through acquisitions.”
AFC HOLDINGS SEEKS TO ACQUIRE COMPANIES WITH THESE ATTRIBUTES
Value-added Services
Kitting
Assembly
Custom Packaging
Labeling/Bar Coding
QA/Traceability
Tube Cutting
End Markets
Medical
Process & Flow Control
Power Generation,
Transportation
& Distribution
Rail & Transportation
Agriculture
Sample Products
Standard Fasteners
Threaded Inserts
Screw Machine Products
Custom Pins, Grooved Pins
Precision Turned Components
Machined Components
Criteria
Minimum EBITDA of $500k
Majority of sales derived from VMI programs
Long term, stable customer relationships
Incline Equity Partners, headquartered in Pittsburgh, Pennsylvania, is a private equity firm focused on making investments in lower middle-market growth companies, focusing on companies with enterprise values of $30MM to $125MM across a variety of industry sectors including value-added distribution, specialized light manufacturing and business and industrial services. Typical investment types are management buyouts, ownership transitions for privately held businesses and corporate divestitures. Incline Equity Partners has experience with investing, mergers and acquisitions, leveraged finance, leveraged buyouts and growth capital.
Disclaimer:
Incline Management Corporation (“IMC”) is registered with the U.S. Securities and Exchange Commission as an investment adviser under the U.S. Investment Advisers Act of 1940, as amended. Registration as an investment adviser does not imply a certain level of skill or training. IMC provides investment advisory services only to privately offered funds. IMC does not solicit or make its services available to the public or other advisory clients. This press release is intended solely to provide information regarding Incline’s potential capabilities for prospective portfolio companies, and is not an offer to sell to any person, or a solicitation from any person of an offer to buy, any securities. The statements contained herein are not statements of any IMC client fund or investor and do not describe any experience with or endorsement of IMC as an investment adviser by any such client or investor.
