Genstar in 3x manufacturing exit

The San Francisco-based private equity firm posted a 7.8x return last year, when it sold decorative labels provider Fort Dearborn for $520m.

Genstar Capital has sold spare parts and attachments manufacturer Woods Equipment Company for $185 million to Blount International, the firm said in a statement.

The San Francisco-based private equity firm generated a 3x return on invested capital on the sale, a source close to the firm said. Genstar purchased the company for around $100 million in 2004, the source said. Terms of the original transaction were not disclosed.


Woods, which is headquartered in Illinois, manufactures equipment attachments and spare parts for agricultural, turf and grounds, and construction equipment. The firm developed its investment in Woods through product re-engineering, distribution expansion and management additions, Genstar vice president Rob Rutledge said in a statement.

Last year, the firm scored a reported 7.8x return when it sold decorative labels provider Fort Dearborn for around $520 million to KRG Capital Partners.

As of March, Genstar was in the process of raising its sixth fund, which is targeting $1.5 billion. Its $1.6 billion predecessor, Genstar Capital Partners V, was generating a 0.58 percent internal rate of return as of 30 September 2010, according to California Teachers’ Retirement System documents.

Genstar typically focuses on mid-market companies in the life sciences, healthcare, financial services, software and industrial technology sectors.