Arrowhead Engineered Products Company Profile

Background

Founded in 1985, Arrowhead Engineered Products (AEP) has established itself as a leading global distributor of non-discretionary, mission-critical aftermarket replacement parts. The company serves a diverse range of industries, including outdoor power equipment, powersports, agriculture, industrial, marine, heavy-duty, and automotive sectors. With a commitment to quality and customer service, AEP has built a reputation for providing products that meet or exceed OEM standards.

Key Strategic Focus

AEP's strategic focus centers on expanding its product portfolio and global footprint to better serve its customers. The company offers over 380,000 SKUs across hundreds of product categories, leveraging data and digital capabilities to design and engineer more than 10,000 new SKUs annually. AEP's primary markets include North America and Europe, with distribution centers strategically located to ensure efficient delivery.

Financials and Funding

In August 2021, AEP was acquired by Genstar Capital, a private equity firm with a focus on industrials, financial services, healthcare, and software industries. Prior to this acquisition, AEP received an $85 million second lien debt investment from Penfund in November 2020, supporting the company's growth initiatives.

Pipeline Development

AEP continually expands its product offerings through strategic acquisitions and internal development. Notable acquisitions include:

Bihr: A leading European distributor of parts, accessories, and rider equipment for motorcycles, quads/ATVs, bicycles, and scooters.

Western Power Sports (WPS): A powersports distributor serving nearly 12,000 customers with more than 150 sales representatives and seven U.S. distribution centers.

Best4Forst: A European distributor specializing in forestry and outdoor power equipment parts.

These acquisitions have significantly enhanced AEP's product range and market reach.

Technological Platform and Innovation

AEP leverages advanced data analytics and digital capabilities to design and engineer a vast array of aftermarket replacement parts. The company's proprietary technologies and methodologies enable the rapid development and commercialization of new products, ensuring they meet or exceed OEM standards. AEP's global distribution network and state-of-the-art facilities further supports its commitment to innovation and quality.

Leadership Team

John Mosunic: Chief Executive Officer

John Mosunic leads AEP with a focus on strategic growth and operational excellence. Under his leadership, the company has pursued significant acquisitions and expanded its global footprint.

Steve Lester: Chief Operating Officer of Western Power Sports

Appointed following AEP's acquisition of WPS, Steve Lester brings extensive experience in powersports distribution and dealer relations.

Christophe Piron: Co-President of Europe and President of Powersports Europe

Formerly the CEO of Bihr, Christophe Piron joined AEP to lead its European operations, focusing on expanding the company's presence in the European market.

Leadership Changes

Recent significant leadership changes include the appointment of Steve Lester as Chief Operating Officer of Western Power Sports and Christophe Piron as Co-President of Europe and President of Powersports Europe, following their respective acquisitions.

Competitor Profile

Market Insights and Dynamics

The global aftermarket parts industry is characterized by steady growth, driven by the increasing age of vehicles and equipment, leading to higher demand for replacement parts. The market is highly competitive, with numerous players offering a wide range of products across various sectors.

Competitor Analysis

Key competitors in the aftermarket parts distribution industry include:

Vulcan Materials Company: A major supplier of construction materials, including aggregates and related products.

Wellex Corporation: Specializes in manufacturing and distributing industrial equipment and components.

Compressor Services: Provides maintenance and parts for industrial compressors and related equipment.

OGI Process Equipment: Offers a range of process equipment and services for various industries.

These companies compete with AEP in various segments of the aftermarket parts industry, each bringing unique strengths and market focuses.

Strategic Collaborations and Partnerships

AEP has engaged in several strategic collaborations and partnerships to strengthen its market position and expand its capabilities. Notable partnerships include:

Rockwood Recycling: Partnered with AEP for drywall recycling, indicating AEP's commitment to sustainability and expanding into the recycling industry.

Custom Golf Car Supply: Acquired to enhance AEP's offerings in the golf car parts and personal transportation vehicle segment.

Operational Insights

AEP's strategic acquisitions and partnerships have positioned the company as a comprehensive supplier in the aftermarket parts industry. The integration of acquired companies has expanded AEP's product offerings and market reach, providing a distinct competitive advantage. The company's commitment to quality, innovation, and customer service differentiates it from competitors.