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Industrial Opportunity Partners Invests in Betty Machine Company, Inc.

Evanston, Ill., July 31, 2013 – Industrial Opportunity Partners (“IOP”), an operations-focused private equity firm based in Evanston, Ill., today announced that it has partnered with current owner and operator, John Zobl, in an investment in Betty Machine Company, Inc. (“Betty Machine” or the “Company”) to support a recapitalization of the business.

Betty Machine is a precision machining manufacturer of close tolerance parts primarily for automotive applications. The Company supplies products, through its Tier 1 customers, to major auto original equipment manufacturers (Ford, GM, Chrysler, Honda, Toyota) as well as other leading manufacturers. Volumes range from low volume prototypes to high volume production parts. Most of the products are incorporated into assemblies that span multiple vehicle platforms and run for several years. The Company operates out of a 75,000 sq. ft. facility in Hendersonville, Tennessee located in the Nashville area.

IOP is partnering in its investment with John Zobl who will remain active in managing and growing the business. Mr. Zobl will remain as President and CEO of Betty Machine and will continue to serve on the Board of Directors. In addition, Nick Galambos, an IOP Operating Principal, will assume the position of Chairman. Mr. Galambos, who has significant experience with 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.

Kenneth M. Tallering, Senior Managing Director of IOP, stated, “We are very excited to partner with John Zobl. We believe Betty Machine is an established business with an excellent reputation for quality and customer service and strong relationships with high-quality customers.”

Mr. Galambos added, “Under John’s strong leadership for the past 13 years, Betty Machine has been keenly focused on customer needs. We believe this focus on quality and customer service has helped the company to grow with both new and existing customers. I look forward to working closely with John, his management team and all of Betty Machine’s employees in growing the company by building on Betty Machine’s reputation with its customers.”

Mr. Zobl commented, “The management team and I are excited to partner with IOP. IOP brings both capital and the experience of Nick Galambos and the rest of the IOP team which should permit the Company to continue to grow and capitalize on opportunities.”

Betty Machine represents IOP's second platform investment in Industrial Opportunity Partners II, L.P., IOP's $275 million second fund.

The transaction was a proprietary deal sourced by IOP through Focus Capital Advisors. Cole Taylor Bank provided financing for the acquisition. McDermott Will & Emery LLP provided legal representation to IOP in the transaction.

 

About Betty Machine Company, Inc.

Betty Machine is a precision machining manufacturer of close tolerance parts primarily for automotive applications. The Company supplies products, through its Tier 1 customers, to major auto original equipment manufacturers (Ford, GM, Chrysler, Honda, Toyota) as well as other leading manufacturers. Volumes range from low volume prototypes to high volume production parts. Most of the products are incorporated into assemblies that span multiple vehicle platforms and run for several years. The Company operates out of a 75,000 sq. ft. facility in Hendersonville, Tennessee located in the Nashville area.

About Industrial Opportunity Partners

IOP is an Evanston, Ill.-based, operations-focused private equity firm with $460 million of committed capital 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 growth in sales and earnings at its businesses.

 

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