AAA is a good example of taking a carve-out business and building it out with the full resources it needs to be successful.
AAA is a precision machining company headquartered in Angola, Indiana. The company’s products are large, complex machined iron castings such as tractor frames, transmission cases and axle housings for agricultural, off-highway, heavy truck and automotive uses.
AAA’s family owners wanted to focus on a proprietary rail products division and sought buyers for their precision machining business. In AAA, we saw an operation with good equipment and technical capabilities in an attractive niche, but an underdeveloped organization, especially in the finance and sales functions. We believed AAA’s strong reputation and strategic location made it a good platform on which to add strategic acquisitions that provided diversification and capacity.