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WHI Capital Partners Acquires Victory Industrial Products, Inc.

Transaction is 5th platform acquisition for the Chicago private equity firm,

and 11th deal closed in the past 30 months

CHICAGO, IL - May 31, 2007 - WHI Capital Partners (WHICP), a Chicago-based private equity firm focusing on the lower-middle market, today announced the acquisition of Ohio-based Victory Industrial Products, Inc., a leading manufacturer of custom enclosures and fuel tanks for power generating units.

Formed in 1985, Victory employs more than 115 people and operates from a new and recently expanded 112,000 square-foot manufacturing facility in Batavia, Ohio. The company manufactures custom-designed enclosures, known as power packages, used in the provision of back-up power systems, as well as other equipment for diesel-engine power generating units, commonly called gensets. 

Victory’s products include custom steel enclosures and integral fuel tanks , which protect gensets from the environment, provide sound attenuation, and support the unit’s electrical and exhaust systems. Power packages are increasingly used in a wide variety of industrial, commercial and municipal applications, including the provision of back-up power systems for hospitals, big-box retailers, airports, data centers, and correctional facilities as well as on and off-shore oil and gas exploration.

Chicago-based WHICP is a private equity firm targeting lower middle market investments in leading niche manufacturing, value-added distribution and specialty service companies with revenues between $10 – 100 million.  Terms of the Victory acquisition were not disclosed. 

“The demand for diesel gensets has increased over recent years and continues to grow as businesses address their back-up power source needs. Victory is ideally positioned to capitalize on that demand,” said Eric Cohen, WHICP’s managing partner.  “We are very excited about the opportunities in the market, as well as working with the existing management team, which did an exceptional job building the business.”

“I am excited about the operational and financial resources WHICP will bring to help us manage our continuing growth,” said Dale Freeman, Victory president and co-founder. Chief Operating Officer and co-founder Bonnie Freeman added, “We’re really looking forward to taking Victory to the next stage in its development.”

WHICP recruited manufacturing veteran Bob Carter to become Victory’s chief executive officer, augmenting the company’s current management team. Carter has a 30-year track record in manufacturing and operations, most recently as CEO of a commercial and off-road / construction vehicle wire harness manufacturer.  “Along with the Freemans, I am looking forward to working with our customers to provide the highest quality products and service to meet their needs and create future business growth,” said Carter.

About WHI Capital Partners

WHI Capital Partners (www.whicapital.com) is a Chicago-based private equity firm that invests in leading niche manufacturing, value-added distribution and specialty service companies with revenues between $10 – 100 million.   WHICP focuses on creating a true partnership with a company’s management team with the goal of enhancing operational efficiency along with developing and executing a clearly defined growth plan to build value.  Backed by the financial strength and resources of its parent firm, William Harris Investors, Inc., WHI Capital Partners provides a unique solution to help a company capitalize on its long-term opportunities.  For more information contact Eric Cohen at (312) 604-7901 or ecohen@whicapital.com.

About Victory Industrial Products

Victory Industrial Products is a leading manufacturer of custom enclosures and integrated fuel tanks for diesel-fueled power generating units, commonly used in the provision of back-up power.  Based in Batavia, Ohio, the company employs more than 115 people and operates from a 112,000-square-foot manufacturing facility.  For more information, please contact Dale Freeman, president, at dale@victoryindustrialproducts.com or Bob Carter, chief executive officer, at bob@victoryindustrialproducts.com.

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