Summertime Was Hot for Graham Partners

Graham Partners, a private investment firm focused on investing in businesses with advanced manufacturing technologies, innovative product development capabilities, and strong growth potential, is pleased to announce the completion of strategic add-on acquisitions for portfolio companies LINE-X, TransAxle, and NDS, the successful completion of a dividend recapitalization at Infiltrator Systems, Inc., and the launch of its new website (www.grahampartners.net).

LINE-X, a global provider of specialty spray-on protective coatings used in automotive, residential, defense, and other commercial end-markets, recently completed an add-on transaction, acquiring American Aftermarket Group (“AAG”). AAG is a B2B marketing, promotional, and consulting group that connects automotive aftermarket suppliers and retailers. This acquisition provides over 400 North American LINE-X franchise locations with the opportunity to become full-service truck accessory customization centers through the use of AAG’s established network.

Kevin Heronimus, CEO of LINE-X, stated, “AAG provides our franchisees and their customers with access to top tier aftermarket manufacturers and accessories, establishing LINE-X as the go-to provider of automotive customization.”

TransAxle, the largest East Coast remanufacturer of transmissions, differentials, hydraulic pumps, and other specialized components for commercial vehicles and off-highway equipment, recently acquired Adelman’s Truck Parts (“Adelman’s”), a Cleveland-based regional remanufacturer of transmissions and differentials for half-ton and larger trucks. This acquisition constitutes a clear win for both TransAxle and Adelman’s, positioning TransAxle for long-term growth and providing Adelman’s the benefit of TransAxle’s highly respected brand name and wide range of quality products. Adelman’s provides TransAxle with additional experienced staff, greater warehouse capacity, and the ability to expand same or next day services as far west as Illinois.

David Olsen, CEO of TransAxle, stated, “The addition of Cleveland to our existing network brings us to a total of 24 branches. This new location enhances our ability to serve local, regional, and national customers with the full suite of TransAxle products.”

NDS, a leading designer and manufacturer of advanced water management systems, recently acquired the DrainTech product line of Advanced Drainage Systems, Inc. DrainTech provides a broad array of solutions for home, landscape, and sports field drainage problems. This acquisition expands NDS’s drainage segment presence, creates operating efficiencies, and strengthens relationships with key customers. “This acquisition will give our customers a one-stop source for a full range of drainage solutions to meet all of their needs, from the largest contractor all the way to a homeowner doing a backyard drainage project,” stated Mike Gummeson, President and CEO of NDS. “We are excited about the opportunities this acquisition presents to us and to our customers.”

Infiltrator Systems, Inc., the world’s leading manufacturer of products for the septic wastewater market, recently closed on a new credit facility, allowing for a substantial dividend distribution coupled with a reduction in the company’s overall cost of debt. Management has aggressively positioned the company for profitable growth. Newly introduced products and operational improvements have caused EBITDA to double in the past two years. Infiltrator was also honored with the 2013 Chairman’s Award from the Society of Plastics Engineers for its industry-leading use of recycled materials, sourcing ~95% of its resin from post-industrial or post-consumer recycled plastics.

Looking ahead, Graham Partners believes its active ownership strategy and pursuit of sustained growth and increased profitability across its investments will yield additional opportunities for portfolio enhancement in the future.

New Website Launched: Graham Partners is also pleased to announce the launch of its redesigned website. The new website, launched in July, was designed with a modern layout and provides users with improved navigation and enhanced functionality, as well as easy access to informational content and videos.

Graham Partners’ Website: www.grahampartners.net
Graham Partners’ Videos: www.youtube.com/user/VideosGrahamPartners

FOR FURTHER INFORMATION CONTACT:

Christina Morin (cmorin@grahampartners.net)
Tel: (610) 408-0500 / Fax: (610) 408-0600
www.grahampartners.net
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