5 January 2012

American Industrial Partners sells Ichor systems

New York-based American Industrial Partners (a middle-market private equity group focused on acquiring and improving North American-based industrial businesses) has announced the sale of Ichor Systems of Tualatin, OR, USA.

Ichor is a designer and manufacturer of process tools, gas delivery modules, and chemical delivery modules purchased by original equipment manufacturers for use in the 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.

Ichor has about 540 staff over a global footprint, including operations in the USA (Oregon, Texas, New York, Massachusetts, and Colorado), Malaysia and Singapore. Its gas and fluid management products and systems are used to produce microelectronic semiconductor chips, solar panels, LEDs, superconductor wire and thin-film magnetic heads. The firm has established strategic relationships with leading OEMs and serves as a design partner and outsourced manufacturer for its customers’ most critical products.

“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,” says American Industrial Partners associate Joel Stanwood. “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 [of Precision Flow Technologies of Saugerties, NY] and helped Ichor establish an impressive pipeline of new revenue opportunities,” he adds.

“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,” comments Ichor’s chairman & CEO David Shimmon. “During management’s partnership with American Industrial Partners, Ichor has diversified into entirely new product markets and developed industry- leading operational capabilities in Asia,” he adds. “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 investing in the industrial economy, as demonstrated by prior fund exits that include Stanadyne Corp, Bucyrus International, Stolle Machinery Company and MECS Inc. On 15 December, it announced the first and final closing of American Industrial Partners Capital Fund V LP at $700m (excluding the general Partners’ commitment of $17.5m). The firm exceeded its target of $500m and closed at its hard cap with broad support from both existing and new investors.

Visit: www.aipartners.com

Visit: www.ichorsystems.com