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.
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:
Edelbrock continues to thrive in its niche, and the company’s iconic products continue to inspire devoted customers.