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Industrial Opportunity Partners Invests in KIC LLC

Evanston, Ill., December 17, 2013 – Industrial Opportunity Partners (“IOP”), an operations-focused private equity firm based in Evanston, Ill., today announced that it has partnered with the current management team and owners of KIC LLC (“KIC” or the “Company”) in an investment to support a recapitalization of the business.

KIC is a North American supplier of wheel-end components for medium and heavy-duty trucks and trailers. KIC supplies brake drums, rotors, hub & drum assemblies, steel wheels and aluminum wheels to both original equipment manufacturers and aftermarket distributors. KIC designs and tests its own products and partners with contract manufacturers located throughout the world. KIC is headquartered in Vancouver, Wash., and operates through nine distribution centers located in the United States, Canada, and Mexico.

IOP is partnering in its investment with Greg Hatton, John Schneider, Omar Fakhoury and Grant Hatton, all of whom will retain significant ownership interests and remain in their current management roles to continue to grow the business. In addition, Andy Weller, an IOP Operating Principal, will assume the position of Vice Chairman. Mr. Weller, who has significant experience with companies serving the commercial vehicle market, 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.

Adam Gottlieb, Senior Managing Director of IOP, stated, “We are very excited to partner with the KIC team. KIC is a growing business with an excellent reputation for quality and customer service and strong relationships with both customers and suppliers.”

Mr. Weller added, “Under Greg Hatton’s strong leadership, KIC 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 Greg and the rest of the KIC management team to grow the company by building on KIC’s outstanding reputation.”

Mr. Hatton commented, “The management team and I are excited to partner with IOP. IOP brings both capital and the experience of Andy Weller and the rest of the IOP team, which I believe will allow the Company to continue to grow and capitalize on opportunities.”

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

The transaction was a proprietary deal sourced by IOP. Wells Fargo Bank provided financing, and Winston & Strawn LLP provided legal representation to IOP in the transaction.

 

About KIC LLC

KIC is a North American supplier of wheel-end components for medium and heavy-duty trucks and trailers. KIC supplies brake drums, rotors, hub & drum assemblies, steel wheels and aluminum wheels to both original equipment manufacturers and aftermarket distributors. KIC designs and tests its own products and partners with contract manufacturers located throughout the world. KIC is headquartered in Vancouver, Wash., and operates through nine distribution centers located in the United States, Canada, and Mexico. For more information, visit KIC’s website at www.kic-group.com.

About Industrial Opportunity Partners

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

 

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