Arnott Industries

Private Equity Manager (GP)

Case study

About the company

Arnott Industries (“Arnott”), founded in 1989, is a global leader in the engineering and manufacturing of aftermarket replacement air suspension products and accessories for passenger vehicles. Headquartered in Florida, the company offers a comprehensive range of products, including air struts, air springs, compressors and conversion kits.

Arnott’s products improve the ride quality of a range of cars and trucks, including vehicles manufactured by Audi, BMW, Cadillac, Mercedes-Benz and Porsche.

Arnott is known for its commitment to quality and innovation, serving the automotive aftermarket with reliable and high-performance solutions.

Investment rationale

• At the time of investment, Arnott Industries had a robust and scalable business model with substantial untapped growth potential.
• Arnott’s strong competitive position in aftermarket air suspension products provided a strong foundation for future growth.
• There was the potential to create value through accelerated new product launches, geographic expansion, and accretive add-on acquisitions.
• The partnership with Arnott’s founder, Adam Arnott, and CEO, Joe Santangelo, was central to the success of this investment.

Our relationship

Pantheon has a long-established relationship with Calera Capital, having previously invested in two secondary deals in their funds. Pantheon subsequently made a primary investment into Calera Capital Partners V.

Active management and value creation

• Over the course of the investment period, Arnott expanded its operations to serve customers in over 50 countries.
• Arnott grew its core product line to over 800 offerings, all while continuing to provide a quality service to its key distribution and installer partners.
• Company revenue more than doubled during PIP’s ownership, with double-digit organic growth rates and the completion of four highly strategic and accretive add-on acquisitions.

Exit

• In November 2024, Arnott was acquired by MidOcean Partners, a US-based private equity manager specialising in middle-market private equity, structured capital and alternative credit investments. PIP made a return of 2.7x on the original cost and an internal rate of return (“IRR”) of 15%.

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