AFC Industries
AFC is a leading provider of supply chain management services and vendor managed inventory 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.
PORTFOLIO STORY
How We Partnered
Transaction Dynamics
A partnership with management to purchase the company from a private owner. Management made a significant reinvestment in the company as part of the transaction.
Investment Thesis
- Long-term customer relationships and high switching costs
- Attractive financial profile and free cash flow conversion
- Multiple avenues for organic growth, including further penetration of existing customers, new customer additions and geographic expansion
- Pipeline of accretive acquisition targets with strong strategic fit
Incline Value Enhancement
- Expanded management team to support growth
- Developed global sourcing capabilities
- Completed twelve acquisitions
- Upgraded and consolidated ERP systems
HEADQUARTERS
Fairfield, OH
STATUS
Realized
INDUSTRY
Value-added Distribution
INVESTMENT DATE
March 2015
AFC Industries Story
Hear more about how Incline balances differing managerial perspectives from CEO Kevin Godin at AFC Industries.
Incline has been a value-added partner. With Incline’s support, AFC is proud to have become the acquirer of choice in the fragmented C-parts industry. Incline helped us develop a strategy and playbook to accelerate our approach to making acquisitions, having completed 12 acquisitions together. Incline’s experience investing in distribution-related businesses was a great asset to us through our partnership.