Company Overview

Ichor Systems Holdings, LLC is a leading global designer and manufacturer of process tools, gas delivery modules and chemical delivery modules purchased by original equipment manufacturers for use in the global light emitting diode “LED”, semiconductor, alternative energy, data storage and flat panel display markets.

Partnership Overview

Acquisition Dynamic / AIP Differentiation

  • Seller valued AIP’s reputation for speed and certainty
  • AIP had previously transacted with seller
  • Complex carve out and private foreclosure expertise

Investment Rationale

  • Global leader at trough of semiconductor market
  • Leading supplier of LED capital equipment
  • Engineering intensive
  • Attractive purchase price
  • High return on asset characteristics
  • Strong management team
  • Significant acquisition synergies in sales, procurement and labor

Value Creation Accomplishments

  • Diversified core business into new markets including LED lighting and data storage
  • Executed an add-on acquisition which significantly diversified the customer base and product offerings
  • Reduced direct labor hours involved in assembling the add-on acquisition’s highest volume product by approximately 50%
  • Achieved substantial procurement savings
  • Transferred production from New York operations to facilities in Singapore and Malaysia
  • Deepened penetration with existing customers, expanded into synergistic adjacent markets, and secured leading market share in a diversified set of end markets
  • Significantly improved revenue and increased EBITDA by over $20 million

Exit

Sold to a financial buyer in December 2011

Company Highlights

Website

www.ichorsystems.com

Sector

Semiconductor/LED

Headquarters

Tualatin, OR

Acquisition Year

2009

Exit Year

2011

Fund

AIPCF IV

Disclaimer: Please note, the above case study does not represent all of the types of investments AIP, LLC has made or the outcomes it has achieved during its lifetime. Each investor must consider whether private equity investments are suitable for their specific goals. Past performance is not indicative of future results. A comprehensive list of all investments along with Portfolio Company information and investment fund performance is available to qualified prospective investors who may be considering an investment in a fund advised by AIP, LLC.