American Industrial Partners, an operationally-oriented middle-market PE investor, has acquired the operating assets of Potomac Supply. The acquired company is now capitalized entirely with equity and has no debt. Potomac is a softwood mill operator and provider of wood treatment services in Kinsale, VA. In addition, the company sells landscaping timbers and specialty products like wood fuel pellets, shavings, fencing components and pallets. AIP will look to help drive growth and improve margins. The PE firm makes control investments in North American-based industrial businesses serving domestic and global markets. This transaction marks the fund's fifth platform investment in 2012 and the sixth investment in the building products industry over the last 18 months.