A Dynamite Exit for Graham Partners
November 20th, 2007
Graham Partners has generated a strong return for its investors through its sale of Dynojet Research, which the firm acquired in 2004. The Company was acquired by a financial buyer. Headquartered in Las Vegas, Nevada, Dynojet is a leading provider of aftermarket performance enhancing parts and accessories, diagnostic equipment, and software for the motorcycle, powersports, and automotive markets. Graham Partners is a manufacturing-focused private equity firm targeting the lower end of the middle market.
Graham’s strategy is to acquire industrial businesses that are benefiting from raw materials and technology conversion trends in their industries, where Graham can utilize its extensive operating resources and industrial network to add value during its holding period. In Dynojet’s case, the Company has been the beneficiary of the ongoing conversion of motorcycle and ATV engines from carbureted to fuel-injection technology, which was central to Graham Partners’ investment thesis for Dynojet.
During Graham’s ownership, the firm worked with Dynojet’s management to complete a synergistic add-on acquisition, double the Company’s R&D staff, release nine distinct new products, launch an innovative automotive product offering, and more than double sales and EBITDA.
“Dynojet is an excellent example of our primary operating objective at Graham Partners, which is to partner with management to not just increase the size of a company during our ownership, but also to enhance its overall quality. We seek to accomplish this by developing, and then relentlessly adhering to, a well-defined strategic plan, implementing improved internal operating programs and procedures, and fostering an innovative corporate culture oriented around new product development,” said Rob Newbold, a Managing Principal at Graham Partners. “Along with management, we were not only able to achieve substantial sales and EBITDA growth at Dynojet, but also to successfully undertake several major strategic initiatives that broadened the Company’s product offering within its core markets and into new segments.”
Graham Partners and Dynojet were advised by Harris Williams & Co. during the sale process.
About Graham Partners (www.grahampartners.net): Graham Partners is a leading, lower middle market industrial private equity firm based in suburban Philadelphia with over $850 million under management. Graham Partners is sponsored by the privately held Graham Group of York, Pennsylvania, an industrial and investment concern with global interests in plastics, packaging, machinery, building products and outsource manufacturing. Graham Partners seeks to acquire industrial companies with revenues between $20 million and $350 million that participate in manufacturing niches where it can leverage its unique combination of operating resources and financial expertise.
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