Loading... EDELBROCK Edelbrock’s founding family sought liquidity but wanted to retain management control and a meaningful portion of equity. Our investment in Edelbrock is a prime example of how we can build on the value of a treasured brand by making operational upgrades while respecting its heritage and working closely with the founding family. Edelbrock is an iconic manufacturer of high-performance aftermarket engine components with an 80-year history of innovation. Edelbrock’s core products include superchargers, intake manifolds, carburetors, electronic fuel-injection systems, cylinder heads, crate engines and various accessories. The company operates six facilities in California and North Carolina, including machining operations, a distribution center, a sand-cast aluminum foundry and a permanent-mold foundry. The founding family sought liquidity but wanted to retain a voice in management and a meaningful portion of equity. Vic Edelbrock selected IOP as a partner due to our willingness to structure a partnership that gave his management team the opportunity to demonstrate their capabilities. He also had confidence in IOP’s manufacturing expertise and vision for the company, and wanted to his family to benefit from the operating improvements that IOP would make. In Edelbrock, we saw an opportunity to back a company with an unrivaled brand, leading product development capabilities and a vertically integrated manufacturing operation that provides a competitive advantage not only in cost, but also in quality and speed to market. We also saw that the company could benefit from operational discipline, a strategic evaluation of its distribution channels and the implementation of advanced manufacturing techniques. 1 2 3 4 5 6 THE DEAL + OPERATING THESES IOP made a control-equity investment in Edelbrock and developed a number of operating theses, all focused on maintaining the company’s emphasis on quality, research and new product development. We aimed to optimize the operational footprint and implement management tools to improve operations and efficiency. We also wanted to make strategic changes to the product portfolio, expanding several existing lines and adding new ones. We saw an opportunity to establish an e-commerce channel and to add direct-to-consumer sales. THE PARTNERSHIP + RESULTS Under IOP’s ownership, Vic Edelbrock remained involved in the business until his passing. Partnering with the Edelbrock management team, IOP has achieved positive results: Operational Improvements With Cost Savings. By enacting lean manufacturing principles and rationalizing the company’s operating footprint, we upgraded operations while trimming costs. Product Line Support. We exited the non-strategic exhaust and suspension product lines, putting more focus on the supercharger and other core technologies. We also made acquisitions to enable in-house manufacturing of carburetors and acquired new components that complemented Edelbrock’s offerings. New Distribution Channel. With a new e-commerce offering, Edebrock’s consumers can purchase products directly. Transitioning Management While Maintaining Culture. We successfully addressed the transition in leadership after Vic Edelbrock’s passing, while maintaining management stability and preserving Edelbrock’s culture. Edelbrock continues to thrive in its niche, and the company’s iconic products continue to inspire devoted customers. MORE STORIES ALEXANDRIA MOULDING CREATIVE FOAM AARROWCAST EMAIL info@iopfund.com CALL (847) 556-3460 FIND 1603 Orrington Avenue Suite 700 Evanston, Illinois 60201 © 2021 Industrial Opportunity Partners | All Rights Reserved | Terms of Use LinkedIn