American Industrial Partners Announces the Sale of Ichor Systems

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Jan 05, 2012, 07:00 ET

NEW YORK, Jan. 5, 2012 /PRNewswire/ -- American Industrial Partners, a middle-market private equity group that is focused on acquiring and improving North American-headquartered industrial businesses, announced the sale of Ichor Systems ("Ichor"). Terms of the transaction were not disclosed.

Ichor is a leading global designer and manufacturer of process tools, gas delivery modules, and chemical delivery modules purchased by original equipment manufacturers for use in the global semiconductor, alternative energy, LED, data storage, and flat panel display markets. American Industrial Partners acquired Ichor in October 2009 at the trough of the semiconductor equipment market.

Headquartered in Tualatin, OR, Ichor employs approximately 540 employees over a global footprint, including operations in Malaysia and Singapore. The Company's gas and fluid management products and systems are used to produce: microelectronic semiconductor chips, solar panels, LEDs, superconductor wire and thin film magnetic heads. Ichor has established strategic relationships with leading OEMs and serves as a design partner and outsourced manufacturer for its customers' most critical products.

"The success of our Ichor investment was driven by our close partnership with an extraordinary Ichor management team. During our ownership of Ichor, management, working closely with American Industrial Partners, rapidly effected an agenda of operating improvements such as: diversification of the core business into new markets including LED lighting and data storage as well as our relocation of operations to Singapore and Malaysia," said Joel Stanwood, an American Industrial Partners associate. "American Industrial Partners is primarily comprised of engineers and operators who support management in achieving growth objectives for their business. In our Ichor investment, we not only achieved significant gains through lean manufacturing and low cost country sourcing, but also executed a transforming add-on acquisition and helped Ichor establish an impressive pipeline of new revenue opportunities."

David Shimmon, Chairman and Chief Executive Officer of Ichor, said, "American Industrial Partners had both a unique insight into the semi industry at its 2009 trough and the deep technical skills to successfully work with management to execute numerous operational enhancements. During management's partnership with American Industrial Partners, Ichor has diversified into entirely new product markets and developed industry leading operational capabilities in Asia. The Ichor team greatly values American Industrial Partners' contribution to the success of the company and, with this chapter in our development now concluded, we look forward to continued growth."

American Industrial Partners has a long record of successful investing in the industrial economy as demonstrated by prior fund exits that include: Stanadyne Corporation, Bucyrus International, Stolle Machinery Company and MECS, Inc. On December 15, 2011, American Industrial Partners announced the first and final closing of American Industrial Partners Capital Fund V, L.P. ("Fund V") at $700.0 million, excluding the GP commitment of $17.5 million. American Industrial Partners exceeded its target of $500 million and closed at its hard cap with broad support from both existing and new investors.

Background of American Industrial Partners

American Industrial Partners is an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets. American Industrial Partners has deep roots in the industrial economy and has been active in private equity investing since 1989. To date, the firm has completed over 30 transactions and is currently managing more than $1.1 billion in equity capital. American Industrial Partners invests in all forms of corporate divestitures, management buyouts, recapitalizations, and going-private transactions of established businesses with revenues of $100 million to $500 million.

SOURCE American Industrial Partners