BOSTON & SAN FRANCISCO–(BUSINESS WIRE)–Calera Capital, a leading middle-market private equity firm, today announced the sale of Arnott Industries, a leader in automotive suspension technology, to MidOcean Partners. Terms of the transactions were not disclosed.
Arnott is a global industry leader in engineering and manufacturing high-quality aftermarket replacement air suspension products and accessories.
Over the course of Calera’s investment period, Arnott expanded operations to serve customers in over 50 countries and grew its core product line to over 800 offerings, all while continuing to offer leading quality and service to its key distribution and installer partners. Company revenue also more than doubled, with double digit organic growth rates and the completion of four highly strategic and accretive add-on acquisitions.
“We look for companies with attractive business models and substantial untapped growth potential,” stated Ethan Thurow, Managing Director of Calera Capital. “Through an active partnership with management, we help our portfolio companies fully capitalize on that potential. Arnott’s transformation into a true global market leader in aftermarket air suspension demonstrates the growth and value creation that comes from this strategy.”
“We were very fortunate to have had the opportunity to partner with Calera Capital,” said Joe Santangelo, CEO of Arnott. “Our company has benefitted tremendously from the collaboration, and we look forward to continuing to build on the momentum created as we begin our next chapter of growth with MidOcean Partners.”
“Investing behind strong founders and management teams to help drive the performance of their businesses is central to our approach,” added Mark Williamson, Managing Partner of Calera Capital. “Our partnership with Adam Arnott, the founder of the business, and Joe Santangelo was core to the success of our investment. We wish the team well, and we are confident they will continue to thrive and enjoy outsized success with their new partner.”
Mark Williamson and Ethan Thurow represented Calera on the board of Arnott. Piper Sandler & Co. served as lead financial advisor with BMO Capital Markets Corp. as co-advisor. Baker & McKenzie LLP provided legal counsel.
About Arnott
Founded in 1989, Arnott is a leading provider of aftermarket air suspension products for light passenger vehicles. Arnott manufactures a comprehensive offering of replacement air struts, air springs, compressors, and conversion kits that cover approximately 90% of addressable air-equipped vehicles in service. Arnott serves leading wholesale distributors, retailers, e-commerce resellers, and installers globally, with facilities in both the United States and Europe. To learn more about Arnott, visit www.arnottindustries.com
About Calera Capital
Founded in 1991, Calera Capital is a private investment firm that has invested over $4.9 billion in equity capital. With offices in Boston and San Francisco, Calera focuses on partnering with founders and management teams to drive significant value creation in their businesses, primarily in two industry sectors: Business Services and Specialty Industrials. Calera Capital makes substantial investments in middle-market businesses and works closely in support of management to build long-term sustainable value through the implementation of operating and strategic initiatives. For more information, visit: www.caleracapital.com
