Tectum Holdings, a portfolio company of Kinderhook Industries, has acquired Applied Products, a manufacturer of retractable truck bed covers. The acquisition of Retrax represents the sixth add-on acquisition by Kinderhook on the Tectum Holdings (THI) platform.
Applied Products (DBA Retrax) is a manufacturer of retractable, low-profile truck bed covers featuring polycarbonate or aluminum covers, which retract on ball-bearing rollers into a storage canister and can be locked in any position. The company was founded in 1996 and is based in Grand Forks, ND (www.retrax.com).
“Retrax provides THI with a footprint in the retractable tonneau market,” said Paul Cifelli, Managing Director at Kinderhook. “Retrax’s explosive growth, brand recognition, innovative design and unmatched quality in the retractable cover market are a perfect complement and expansion of THI’s comprehensive line-up of tonneau covers. Further, THI’s national distribution network will accelerate Retrax’s growth initiatives as well as enhance Retrax’s brand awareness.”
Tectum Holdings is the holding company for Extang (www.extang.com), TruXedo (www.truxedo.com), UnderCover (www.undercoverinfo.com) and Advantage Truck Accessories (www.advantagetruckaccessories.com) – all manufacturers of tonneau covers for light duty trucks, and BedRug (www.bedrug.com) – a manufacturer of bed liners for light duty trucks. The company is headquartered in Ann Arbor, MI.
“THI’s acquisition of Retrax is another important step in THI’s long-term growth strategy. Kinderhook and THI have employed an aggressive organic and acquisition led growth strategy and the acquisition of Retrax represents the sixth acquisition on the THI platform. The acquisition of Retrax positions both businesses for continued growth and success,” said Tom Tuttle, Managing Director at Kinderhook.
Kinderhook Industries makes control investments in companies with transaction values of $25 million to $75 million in which the firm can achieve financial, operational and growth improvements. The firm pursues private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations and existing small capitalization companies lacking institutional support. The firm, founded in 2003, has $770 million of committed capital and is based in New York (www.kinderhook.com).
Financing for the transaction was provided by Madison Capital Funding. Kirkland & Ellis served as legal counsel to Kinderhook and THI. Capstone Financial Group served as an M&A advisor to THI.
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-15-13
