Harvest Partners and Audax Private Equity have completed the combination of AP Emissions Technologies and Centric Parts to form APC Automotive Technologies (APC). As part of the transaction, Harvest provided a new equity investment into the combined business and Audax retained a significant ownership stake in APC.
On a combined basis, APC is a supplier of automotive, light truck and heavy duty replacement parts offering emissions products under the AP, ANSA, Cherry Bomb, TruckEx, Xlerator, and Silverline brands, and brake and chassis components under the Centric, C-Tek, Posi Quiet, Fleet Performance, and StopTech brands. The company sells its products through traditional warehouse distributors, feeders, retailers, performance, and specialty channels (www.APCAutoTech.com). Centric Parts has over one million square feet of warehouse and manufacturing space and is headquartered in Industry, CA (www.centricparts.com). AP Emissions Technologies has over 450,000 sq. ft. of warehouse and manufacturing space and is headquartered in Goldsboro, NC (www.apexhaust.com).
Audax acquired AP Emissions Technologies (AP) in 2014 and Centric Parts in 2008. “We have been privileged to work with both the AP and Centric teams in developing leading aftermarket platforms. Together with Harvest, we look forward to expanding APC through leveraging the strengths of AP and Centric and continuing to acquire leading brands in the undercar aftermarket,” said Young Lee, a Managing Director at Audax.
Hugh Charvat will lead APC as Chief Executive Officer. Mr. Charvat joined AP in March 2016 as CEO. He is the former Chairman, President and CEO of Schrader International, a manufacturer and distributor of pressure-related valve and sensing technologies. Dan Lelchuk, who co-founded Centric Parts in 2000, will remain as the President of Centric Parts.
“We expect our platform to continue to grow through leveraging the combined strengths of both businesses and through future acquisitions in the undercar aftermarket. I am looking forward to working with Dan and the rest of the Centric team to continue delivering exceptional service to our customers and accelerating our growth,” said Mr. Charvat.
Both Harvest and Audax have experience in the automotive aftermarket and will provide their joint resources to support APC. “AP and Centric are leaders in their industry, with longstanding track records of supplying high-quality parts to their customers. We are excited to partner with Audax and the management team and look forward to supporting APC in its next phase of growth,” said Michael DeFlorio, Senior Managing Director at Harvest.
Financing for the transaction was provided by Jefferies, Goldman Sachs, and Crescent Capital Group. Jefferies was the financial advisor to AP and Lazard Middle Market and Angle Advisors advised Centric.
The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, New York and Menlo Park (www.audaxgroup.com).
Harvest Partners invests in companies with $20 million to $100 million of EBITDA and total enterprise values of $100 million to $1 billion. The firm invests in four industry verticals: business services and consumer; healthcare services; industrial services; and manufacturing & distribution. Harvest was founded in 1981 and is based in New York (www.harvestpartners.com).
© 2017 Private Equity Professional | May 11, 2017
