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Industrial Opportunity Partners Acquires AAA Sales & Engineering, Inc.

Evanston, Ill., June 11, 2014 – Industrial Opportunity Partners ("IOP"), an operations-focused private equity firm based in Evanston, Ill., today announced it has acquired the Production Machining Division of privately-owned AAA Sales & Engineering, Inc. ("AAA" or the "Company"), a precision machiner of large, complex iron castings primarily for agricultural and off-highway vehicle applications. The seller has an unrelated railroad products division that it will retain and operate under a new name following close. Terms of the transaction were not disclosed.

Based in Oak Creek, Wis., AAA provides high precision production machining services for a variety of heavy-duty equipment original equipment manufacturers, handling projects from design and prototyping to finished product and post-production services. AAA currently operates from two facilities with approximately 100,000 square feet under roof and a total of approximately 100 employees. AAA prides itself on its product quality, customer service and support, in-house design and engineering capabilities and operational excellence (six sigma black belt training program and ISO-9001 certification).

Brett Law, formerly General Manager of AAA, will become President and will serve on the Board of Directors. In addition, John Colaianne, an Operating Principal of IOP, has been appointed Chairman. Mr. Colaianne, who has significant experience operating companies serving similar end-markets, is a member of IOP's Board of Operating Principals, which is comprised of seasoned executives who provide leadership to the businesses in which IOP invests.

Bob Vedra, Senior Managing Director of IOP, stated, "On behalf of IOP, we are very excited to announce the acquisition of AAA. We believe that AAA has established an exceptional reputation for the machining of large, complex parts, and we look forward to building upon AAA's accomplishments."

Mr. Colaianne noted, "AAA serves a world-class customer base, invests in technologically advanced machining equipment and maintains a talented and dedicated employee base. At IOP, we believe there is significant opportunity to grow the Company by investing in capital equipment while continuing to focus on industry-leading quality and customer service. I look forward to working with Brett and his outstanding team."

Mr. Law added, "The management team and I are thrilled to partner with IOP as we begin this new stage of AAA's history. IOP offers a combination of operational experience, customer relationships and capital that we expect will contribute heavily to our future growth."

AAA represents IOP's fourth platform investment in Industrial Opportunity Partners II, L.P.

The transaction was a proprietary deal sourced by IOP. PNC Bank and Patriot Capital provided financing for the acquisition. Winston & Strawn LLP provided legal representation to IOP in the transaction.

 

About AAA Sales & Engineering, Inc.

AAA Sales & Engineering, Inc., originally founded in 1968, provides high precision production machining services for a variety of heavy-duty equipment OEMs, handling projects from design and prototyping to finished product and post-production services. AAA prides itself on its product quality, customer service and support, in-house design and engineering capabilities and operational excellence (six sigma black belt training program and ISO-9001 certification). Based in Oak Creek, Wis., the Company currently operates from two facilities totaling approximately 100,000 square feet and with approximately 100 employees. For more information, visit AAA's website at www.aaase.com.

About Industrial Opportunity Partners

IOP, an Evanston, Ill.-based private equity firm with $460 million of committed capital since inception, is dedicated to creating value through investing in manufacturing and value-added distribution businesses with sales between $30 million and $350 million. IOP focuses on businesses with strong product, customer, and market positions, and provides management and operational resources to support sales and earnings growth at its businesses.

 

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