Industrial Opportunity Partners has refinanced Center Manufacturing

Lincoln International (“Lincoln”), a leading global mid-market investment bank, has announced the successful completion of a financing for Center Manufacturing, Inc. (“Center” or the “Company”), a portfolio company of Industrial Opportunity Partners (“IOP”). Center is a leading manufacturer of highly engineered, complex and customized metal assemblies and components sold primarily to OEMs in the heavy- and medium-duty truck, power sports, motorcycle, construction and agricultural markets.

Lincoln acted as exclusive financial advisor to the Company and IOP and completed the placement of $27.0 million in senior secured credit facilities, consisting of a $15.0 million revolver commitment and $12.0 million of senior secured term loans, as well as $7.5 million of senior subordinated notes. Proceeds from the transaction were used to improve the Company’s senior debt arrangements, finance projected growth in revenues, as well as pay for the acquisition of Moeller Products Co., Inc., a leading producer and supplier of custom dipsticks, oil caps and tube assemblies to OEMs of diesel engines and diesel-powered heavy- and medium-duty equipment. The senior credit facilities were provided by Capital One Leveraged Finance Corp. and the senior subordinated notes were provided by Patriot Capital.

As the Company’s exclusive financial advisor, Lincoln worked closely with IOP and Center’s senior management team on all aspects of the transaction, helping to structure, arrange and negotiate the financing.

Bob Vedra, Managing Director of IOP, stated, “We were very pleased with Lincoln’s process, which positioned the Company and the acquisition target in the most favorable light, efficiently approached a wide universe of senior and junior capital providers, created healthy competition among lenders and ultimately resulted in extremely favorable financing terms for Center. Often times, it is challenging to optimize a financing package under the constraints of a time-sensitive acquisition transaction; however, we feel we maximized our financing while meeting our deadlines.”

Bob Horak, Managing Director and co-head of Lincoln’s Debt Advisory Group, added, “The Center transaction is an excellent example of how outsourcing an acquisition financing process to Lincoln can significantly improve the terms and conditions with lenders through a competitive process. Additionally, by streamlining certain steps in the financing process, Lincoln placed the capital in an expedited manner and allowed Center to complete its acquisition on schedule.”

About Center Manufacturing, Inc.

Center is a leading manufacturer of complex welded fabrications and assemblies for top tier OEM manufacturers of motorcycles, all-terrain vehicles, commercial vehicles, automobiles, construction and agricultural equipment, and HVAC equipment. For more information, visit Center’s website at www.centermfg.com.

About Industrial Opportunity Partners

IOP is an Evanston, IL based private equity firm 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. For more information, visit IOP’s website at www.iopfund.com.

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