Main Street Capital Investor Day Presentation Deck
ELGIN
Headquarters
Elgin, Illinois
Business
Third generation, family owned and
managed, fully integrated supplier of
engine and chassis components to
OEMS and Aftermarket
Website
https://www.elginind.com
Original Investment Date
October 2022
Investment Type
First lien, senior secured term loan
Majority equity investment
Transaction Type
Majority Recapitalization
Original Capital Invested
$20.0 million Term Loan (¹)
$6.1 million Equity (1)
(1) MAIN 94% / MSC Income Fund 6%
Main Street's View of Transaction and Background
Main Street Capital Corporation
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Elgin Industries Overview
Founded in 1919, Elgin Industries, Inc. ("Elgin" or the "Company") is a Tier One fully-integrated manufacturer and
distributor of engine and chassis components to a diverse group of global original equipment manufacturers
("OEMS") across the automotive, commercial vehicle, powersport, and industrial equipment markets. Elgin also offers
an extensive range of replacement components and kits to ftermarket customers ("Aftermarket") worldwide
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Strong Market Position and Reputation
Elgin is the dominant supplier of its four manufactured products to the OEM and Aftermarket segments
Maintains Tier One status with marquee OEMs, has achieved the highest level of quality certificate from its
largest customer and has earned dozens of quality awards
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MAIN ST
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CAPITAL CORPORATION
In October 2022, Main Street ("MAIN") partnered with the Company's existing owners and management team to
facilitate the transaction and provide growth capital, with Main Street and its co-investor funding $26.1 million in a
combination of first-lien, senior secured term debt and a direct equity investment
Main Street and its co-investor also provided Elgin with a revolving line of credit to support the Company's future
growth initiatives and working capital needs
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Significant Growth Opportunities
Favorable tailwinds in Aftermarket auto, which has driven double-digit growth across Elgin's Aftermarkets business
which includes: (i) rebounds in vehicle traffic to pre-pandemic levels and (ii) an increase in Car Parc (registered
vehicle population on the road) that is in the "sweet spot" for Elgin's products of 7 - 12 years old
The Company's manufactured parts sold to OEMs are mostly used in heavy-duty diesel vehicles, which
continue to have significant support and ongoing development from OEMs as heavy-duty vehicles are some
of the OEMs' most profitable vehicle lines and are not easily addressed by electric vehicle technologies
Sole supplier of pushrods for both of its two largest customers (two blue-chip OEMs)
NYSE: MAIN
Expansion into Big Box auto retail, opportunistic price increases and SKU expansion across current customer base
and new customer additions are all tangible, organic growth opportunities for the Company's Aftermarket business
to benefit from the favorable trends in the space
Continued growth of OEM business with near term new customer additions and expansion
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