Since 1924, Arrowhead Winch has been a leading manufacturer of industrial winches, hoists and drive systems. The company designs and manufactures a wide variety of engineered solutions under the BRADEN, CARCO and Gearmatic brand names. Based in Broken Arrow, Oklahoma, with nationwide distribution through its family of brands, Arrowhead serves a variety of industries including utilities, oil and gas, construction, forestry, and marine services among others. 

Need:

PACCAR Inc. is an American company primarily focused on the design and manufacturing of large commercial trucks. In 2024, the company made the decision to carve out PACCAR Winch, which then became Arrowhead Winch after the company was acquired by private equity firm Black Phoenix Group. All parties were looking to complete a quiet and discreet transaction quickly and seamlessly, as PACCAR is a publicly traded company and wanted to avoid any impacts to the remaining business. The buyer, Black Phoenix Group, was also looking for a banking partner that would be able to grow with Arrowhead Winch as it became a standalone business.

“Our first priority is relationships, so it was important for us to have a bank lender that would be with Arrowhead Winch after the transaction was complete,” explains Mark Pickett, Partner, Black Phoenix Group. “We had an existing relationship with PNC, so knew we were working with a team that was familiar with supporting independent sponsors like us, who are backed by a strong network of seasoned capital partners, including institutional investors, family offices, and high-net-worth individuals. PNC's well-regarded reputation for successfully navigating carve-out transactions gave us the confidence to request a term sheet.”

That ask was part of a broader process happening within BPG to find a financing partner for the deal. Carve-out transactions, which involve a company separating out a part of its business, are not necessarily common among financial institutions, so PNC's experience in this regard set it apart. 

Solution:

PNC Bank's reputation of mastering steady and dependable strategies provided them the advantage needed to respond quickly with a reliable package offered on an accelerated timeline. PNC Business Credit was able to provide a $20 million revolving credit facility, a $12 million term loan to support the acquisition and a five-week closing.

PNC Business Credit team proposed a flat term loan amount as opposed to a formula-based structure based on the value of collateral, providing a certainty of funding, and minimizing execution risk. In addition, this approach helped make it possible for PNC to operate on the accelerated timeline.

“Our familiarity with carve-out transactions gives us the ability to come in and ask essential and impactful questions,” explains Eamonn Brady, the Business Development Officer on the deal for PNC Business Credit. “Our screening process is robust, and we ensure that we are prepared to close on what we put in our term sheets. We do this consistently, no matter the circumstance or economic environment. As a result, clients can rely on us, knowing we can work quickly and with certainty.”

Alongside the financing package, PNC is supporting Arrowhead Winch with a range of banking services including wire transfers, P-Cards, treasury management and private wealth services for partners in the equity pool. 

Results:

Ultimately, PNC Business Credit was able to support the successful carve out of Arrowhead Winch from its parent company on an accelerated timeline and at competitive terms. The transaction is BPG’s largest investment to date in a single company.

Since moving to PNC, Arrowhead Winch has made further use of the relationship with PNC to expand its use of business banking solutions, including treasury management, wire services and corporate purchasing cards.

With PNC, Arrowhead Winch was able to:

  • Carve out from a large publicly traded company, while maintaining brand and business continuity.
  • Establish a $20 million revolving credit facility and get a $12 million term loan to finance the carve-out transaction and serve working capital needs.
  • Launch treasury management and purchasing card programs for the new company.
  • Start building a corporate banking relationship that will grow with the new company.
  • Offer wealth management support to partners on the transaction.

Bryce Fisher, Managing Partner at Black Phoenix Group says that he expects Arrowhead’s corporate banking relationship to continue to scale with the company as needed. “The onboarding process has been very user-friendly,” he says. “We were able to get started almost immediately with the services that we need and feel comfortable going back to our relationship managers if we want to add on services." 

At PNC Bank, we specialize in smart, steady solutions that support long-term success - no surprises, just solid results. Let's build your brilliant today, contact PNC Business Credit.