ICI Holding Company

December 4, 2012
Contact: Lauren B. Sinai

Prospect Partners Recapitalizes Irrigation Components International

With Private Equity Backing, International Supplier of Agricultural Irrigation Equipment Components Looks to Expand Offering and Domestic Presence

CHICAGO, Ill.—December 4, 2012: Prospect Partners, LLC, a leading private equity firm investing in smaller lower-middle-market companies, today announced the management-led recapitalization of Irrigation Components International, Inc. (ICII). The Daphne, Ala.-based international provider of agricultural irrigation equipment components becomes the fourth platform company of Prospect Partners' third fund.

ICII manufactures and distributes irrigation equipment parts to Original Equipment Manufacturers (OEMs) and aftermarket customers, primarily mechanized, or center pivot equipment, dealers. With a distribution system that includes the United States and 35 countries worldwide, ICII has become the world's largest independent supplier of its specialty, center pivot components and spare parts. ICII's offering includes a range of mechanical and electrical components to make center pivots, including power transmissions, flow meters, sprinklers, controls, wire and cable, and fittings. The company is led by John McCabe, President, and Adam Skolnik, CEO.

"We are excited to invest alongside management in such a well-positioned niche market leader," said Lou Kenter, a founding principal of Prospect Partners. "ICII is run by an exceptional team of veterans each with 30-plus years of industry experience, proven operational success, and a strong plan to continue to develop the company as the best one-stop source for all components needed to make and repair center pivots."

Center pivot, or mechanized irrigation technology, is a type of agricultural irrigation for large scale crop production in which the equipment rotates around in a circle, often creating a green circular pattern when viewed from the sky. The equipment is electric motor-powered, and crops are watered by overhead low-pressure, high efficient sprinklers. Center pivot is a popular form of irrigation for many types of crops, including corn, soybeans, potatoes, sunflowers, peanuts, cotton, alfalfa, and wheat.

"We look forward to Prospect Partners' support as we execute the next chapter of ICII's growth," said Mr. Skolnik. "We sought a private equity investor we felt would be a genuine fit, professionally and personally. Prospect Partners' track record and relationship-oriented reputation were big factors in our decision to partner together."

Going forward, ICII — which operates distribution centers in Alabama, Illinois, Nebraska, and Texas — seeks to open additional domestic offices and to acquire other irrigation equipment component suppliers that help expand and deepen its product line.

Serving on the board of the holding company, ICI Holding Company, from Prospect Partners are Mr. Kenter, as Chairman, and Prospect Partners' Vice President Phillip Brennan, as a Director.

The other platform companies in Prospect Partners' $200 million third fund, Prospect Partners III, L.P., are: Landmark Irrigation Holding Services, Inc., a Madera, Calif.-based designer and installer of custom drip irrigation systems for Central California farmers; Prospect Water Co. LLC, a Lombard, Ill.-based provider of water treatment products and services through independently franchised dealers; and SurePoint Holdings, LLC, of Lawrence, Kansas, a nationwide provider of direct-to-consumer diabetes supplies and services. Prospect Partners III, L.P. closed in August, 2010.

About Prospect Partners, LLC

Prospect Partners is a leading private equity firm investing in smaller lower-middle-market companies, managing $470 million across three funds. A highly experienced and active investor, Prospect Partners focuses exclusively on management-led leveraged recapitalizations and acquisitions of niche market leaders with revenues typically under $75 million. Since 1998, Prospect Partners has invested opportunistically nationwide in more than 90 companies in a broad range of niche manufacturing, distribution, and specialty service markets. Based in Chicago, Prospect Partners also has an office in Menlo Park, Calif. For more information, visit www.prospect-partners.com.

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