American Industrial Partners Acquires The Operating Assets Of Potomac Supply Corporation

NEW YORK, Dec. 19, 2012 /PRNewswire/ -- American Industrial Partners ("AIP"), a middle-market private equity firm focused on acquiring and improving North American-headquartered industrial businesses, has acquired the operating assets of Potomac Supply Corporation, a softwood mill operator and provider of wood treatment services located in Kinsale, VA.  The new company, renamed Potomac Supply, LLC ("Potomac"), is capitalized entirely with equity and has no debt.  The transaction marks the fund's fifth platform investment in 2012 and the sixth investment in the building products industry over the last 18 months.

Located 70 miles northeast of Richmond, Potomac operates a 679,000 square foot yellow pine sawmill with 75 million board feet of capacity on a two shift operating basis. On the same campus, the company also operates modern wood treating retorts.  Potomac sells dimensional lumber in kiln dried and treated form. In addition, the company sells landscaping timbers and other specialty products such as wood fuel pellets, shavings, fencing components and pallets.

AIP has a long history of successfully buying industrial businesses, such as Potomac, and partnering with management to drive growth. "Although the company's operations have been challenged in recent years, its facilities are modern and competitive," said Rick Hoffman of AIP.  "Potomac is an ideal platform for our thesis in softwoods and wood treating and we look forward to working with management to drive growth and margin improvement."

"I am extremely pleased to be partnering with the AIP.  We share the commitment to build on Potomac's strong history in the building products industry and deliver expanded capabilities and value to our customers," said Darrell Keeling, CEO of Potomac.  "It is a good day when we can support the community by giving an institution like Potomac a new future."

About American Industrial Partners
American Industrial Partners ("AIP") is an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets.  The Firm has deep roots in the industrial economy and has been active in private equity investing since 1989.  To date, AIP has completed over 30 transactions and is currently managing more than $1.1 billion in equity capital. AIP invests in all forms of corporate divestitures, management buyouts, recapitalizations, and going-private transactions of established businesses with revenues of $100 million to $500 million.

SOURCE American Industrial Partners