AFC Industries

The Story

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.

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

  • Accelerate organic growth through additional sales resources and extending geographic reach
  • Facilitate management team development to support future growth
  • Improve operations by streamlining warehouse activities, increasing overseas sourcing and reducing expenses
  • Pursue strategic add-on acquisitions

Headquarters

Pittsburgh, PA and Cincinnati, OH

Industry

Value-added Distribution

Investment Date

March 2015

Status

Active

Fund

III

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