Wellspring Capital Management has acquired Qualitor, a supplier of branded aftermarket safety and wear products for the automotive aftermarket, from HCI Equity Partners.
“We are delighted to invest in Qualitor, which has built a strong platform for future growth under its recession-resistant and highly efficient, asset-light business model. We intend to work closely with management in order to drive further improvements in marketing, product development and distribution, and our team at Wellspring is eager to press forward,” said William Dawson, Jr., Chief Executive Officer of Wellspring.
Qualitor is a supplier of aftermarket safety and wear parts including wiper blades and auto care accessories (under the Pylon brand) and brake hardware and related components (under the International Brake Industries brand). Qualitor’s products are functioning components that are critical to safe vehicle operation. Due to their design and purpose, Qualitor’s products also wear out regularly. According to market research firm IMR (www.automotiveresearch.com), out of 96 various types of repair and maintenance jobs, Qualitor’s products were among top ten most-replaced components in 2012. Qualitor operates six North American locations and is headquartered in the Detroit suburb of Southfield, MI (www.qualitorinc.com).
“We were attracted to Qualitor for its unique market position and compelling growth opportunities in the $240 billion US automotive aftermarket. The company and management team have a proven track record of performance under a variety of macroeconomic conditions, and will pursue a variety of new initiatives to further enhance the value of Qualitor and its market opportunities,” said John Morningstar, a Managing Partner of Wellspring.
Wellspring Capital Management is a middle-market private equity firm that manages more than $3 billion of private equity capital. The firm was founded in 1995 and is based in New York (www.wellspringcapital.com).
HCI Equity Partners, which acquired Qualitor in December 2004, invests in industrial products and service companies that have from $20 million to $200 million in annual revenue. Sectors of interest include aerospace & defense; automotive aftermarket; distribution; energy services; federal services; infrastructure products & services; niche manufacturing; power generation components; test & measurement; and transportation & logistics. HCI Equity has offices in Washington, DC; Chicago and Minneapolis (www.hciequity.com).
Alvarez and Marsal Transaction Advisory Group (www.alvarezandmarsal.com) provided finance, accounting and tax advice, and Equity Risk Partners (www.equityrisk.com) advised on insurance and employee benefits. Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel to Wellspring.
2014 PEPD • Private Equity’s Leading News Magazine • 11-3-14
