Genstar Capital has acquired BBB Industries, a supplier of replacement parts to the automotive aftermarket, from Pamplona Capital Management.
BBB has more than 30,000 SKUs and its products include remanufactured starters, alternators, hydraulic steering, brake calipers, electric power-assisted steering and turbochargers. The company’s products are sold through warehouse distributors, retail outlets, and OEM service organizations. BBB’s products are used in the “do-it-for-me” light vehicle aftermarket by vehicle owners, professional technicians and franchised dealers.
BBB has manufacturing facilities in Sparta, TN and Reynosa, Mexico and 13 distribution offices across the US, Canada and Mexico. The company, led by CEO Duncan Gillis, was founded in 1987 by brothers Jeffrey and Bruce Bigler and is headquartered in Daphne, AL (www.bbbind.com).
“Because our products are mission-critical to the operation of a vehicle, our key focus is to provide customers with quality, availability, breadth of SKUs, and service,” said Mr. Gillis. “With Genstar’s expertise and history of successfully building companies like ours, we look forward to transforming our company and taking BBB Industries to the next level while continuing to provide our customers with the highest quality products. We very much look forward to this new partnership.”
“BBB is an industry leader in the automotive aftermarket with a strong reputation for quality and manufacturing expertise,” said Rob Rutledge, a Managing Director at Genstar. “We believe we can partner with management to expand the product offerings for BBB’s customers through investments in new technologies, capacity expansions, and acquisitions in BBB’s current and adjacent markets. Genstar’s ability to move quickly and to provide growth capital will help to further enhance BBB’s market presence and build on its strong relationships with new and existing customers.”
Genstar invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million. The firm targets investments in the financial services, software, industrial technology, and healthcare industries. Genstar was founded in 1988 and is based in San Francisco (www.gencap.com).
Pamplona Capital Management, the seller of BBB, acquired the company in November 2014 from Windjammer Capital which it turn had acquired the company in July 2007 from ShoreView Industries.
Pamplona makes direct private equity, fund of hedge funds, and single manager hedge fund investments. The firm manages over $10 billion in assets across a number of funds for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices, and funds of hedge funds. Pamplona was founded in 2005 and is based in London and New York (www.pamplonafunds.com).
UBS Investment Bank was the financial advisor to Genstar on this transaction.
© 2018 Private Equity Professional | August 2, 2018
