The private equity firms that are buying up after market parts manufactures see a profitable growth market potential in these business. Often this is the best way for a cash out retirement for the current owners of the business - its cash on the table versus an employees owned buyout (ESOP) which rarely works out as having many inexperienced "owners" quickly leads to disagreement and failure.

I follow this investment traunch pretty closely and know about most of the players out there - some have an real interest in the aftermarket world others just know a good opportunity. In my mind It's a good move as many of these companies they acquire are solid but under performing because of cash flow constraint or just lack of interest in expanding. The PE brings in the money for new equipment and R&D and will let it grow as it is an investment. As with most business that started small - very few really know how to move the company to the next level - they become stationary and comfortable and return the same income year after year - nothing wrong with that - just a lot of missed opportunity. The next waive will be consolidation of product lines and manufacturing - we have already seen that with a couple of piston manufactures. The aftermarket parts business has grown into a a big industry and with that comes the big money!