Genstar Capital has acquired a majority equity interest in Truck-Lite, a provider of safety lighting, filtration systems and telematics services for commercial vehicles, from BDT Capital Partners and Koch Equity Development. Penske Corporation is remaining as a minority investor in the company in partnership with Genstar.
Truck-Lite was founded in 1955 and was acquired in 1997 by Penske with backing from General Electric. Private equity firm Kelso & Co. acquired a 49% equity interest in Truck-Lite in 2010 before exiting its investment through a sale to BDT and Koch Equity in 2015.
Truck-Lite is a producer of forward and safety lighting, wiring harnesses, turn signal switches and safety accessories for the medium- and heavy-duty truck, trailer and commercial vehicle industries.
The company also designs and manufactures the Road Ready telematics systems for heavy- and light-duty trailers and off-road industrial usage; fuel filtration and water separation systems (through its Davco subsidiary); and rugged LED lighting for the off-road and marine industries (through its Lumitec and Rigid Industries subsidiaries).
Truck-Lite has an annual EBITDA of more than $100 million according to industry sources. The company, led by CEO Brian Kupchella, is constructing a new global headquarters in the Detroit suburb of Southfield, Michigan, and has eleven additional facilities in New York; Pennsylvania (4); Michigan (Davco); Florida (Lumitec); Arizona (Rigid Industries); United Kingdom; Mexico; and China.
“We are very excited to partner with Genstar,” said Mr. Kupchella. “We believe its investment philosophy aligns extremely well with Truck-Lite’s long-term strategy and will allow us to accelerate our growth plans, continue to invest in new products and markets, and improve our value proposition to our customers and partners.”
San Francisco-based 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. In February 2019, Genstar held a final closing of Genstar Capital Partners IX LP with $5.9 billion in capital commitments.
“Truck-Lite has a leading position in attractive market segments, with a history of innovation, product development and industry superior technology,” said Rob Rutledge, a managing director at Genstar. “For over 60 years they have worked to build strong brand recognition and we see an opportunity to support the continued expansion of the business through growth in new products, technologies, and Truck-Lite’s Road Ready telematics systems and look to further expedite that growth by pursuing strategic acquisitions.”
“Truck-Lite serves as a valuable partner to many of the world’s largest commercial vehicle fleets, OEMs and distributors,” said Patrick Conroy, the chief financial officer of Penske and a member of the Truck-Lite board of directors. “Truck-Lite has a strong history of developing new innovations that make them leaders in providing technologically advanced products that allow truck fleets to operate with improved safety and reduced costs. We look forward to continuing our relationship with Truck-Lite and supporting Genstar to accelerate Truck-Lite’s growth.”
Penske is a closely-held, diversified, on-highway, transportation services company with interest in retail automotive, truck leasing, transportation logistics, and professional motorsports. The company’s combined businesses have revenues of more than $32 billion, more than 64,000 employees, and operations at more than 3,600 locations. Penske is headquartered near Detroit in Bloomfield Township, Michigan.
BDT Capital Partners was founded in 2009 by Byron Trott, the former vice-chairman of Goldman Sachs. The firm manages more than $9 billion across its committed funds as well as $3.7 billion of co-investments from its limited partners. The firm is a bit secretive and does not have a web presence but does maintain offices in Chicago, New York, London, and Frankfurt.
Koch Equity Development (KED) is part of Koch Industries, one of the largest privately-held businesses in America, with estimated annual revenues as high as $100 billion. KED operates from offices in Wichita, Kansas and London, UK.
MidCap Financial was the Administrative Agent, Joint Lead Arranger, and Joint Bookrunner for a senior secured credit facility that supported Genstar’s buy of Truck-Lite. MidCap’s deal team was led by Rodney Craig. MidCap Financial, in alliance with its investment manager Apollo Capital Management, is a middle-market focused finance firm that provides debt instruments of $10 million to $750 million to companies across all industries.
Baird and Barclays were the financial advisors to Truck-Lite on this transaction.
© 2019 Private Equity Professional | December 20, 2019
J.D. Power, a provider of data analytics and consumer intelligence, has merged with Autodata Solutions, a portfolio company of Thoma Bravo. J.D. Power was acquired by Thoma Bravo from London-based XIO Group. Thoma Bravo acquired Autodata Solutions in May 2019 from Internet Brands, a portfolio company of KKR.
The Costa Mesa, California-headquartered firm, led by CEO Dave Habiger, has over 800 employees and 16 offices serving North America, South America, Asia Pacific, and Europe.
“We saw J.D. Power as an iconic brand with strong upside potential and have been greatly impressed with the management team’s accelerating the digitization of the platform, including the successful implementation of AI initiatives and the introduction of innovative analytics products,” said Joseph Pacini, CEO of XIO Group. “As we exit our investment, we wish them every success in the years ahead.”
The newly combined company led by CEO Dave Habiger, will operate under the name J.D. Power and will be headquartered in Troy, Michigan. Autodata Solutions will operate as a division of J.D. Power and will be led by President Craig Jennings, the former president and CEO of Autodata Solutions.
“The joining of these two leading companies will enable the auto industry to make the process of configuring, ordering and selling cars more efficient, which can improve profitability and capital deployment,” said Scott Crabill, a managing partner at Thoma Bravo. “This capability is exactly the kind of proven, concrete insight the auto industry needs as it confronts changing consumer demands in a transforming technology environment.”
Pelican International, a portfolio company of Fonds de solidarité FTQ (Funds FTQ), has acquired Confluence Outdoor, a portfolio company of J.H. Whitney.
“The acquisition aims to capitalize on the strengths and capabilities of two synergistic businesses and brands, from the products that make their success to the people that make them shine, in a consolidating and globalizing industry,” said Danick Lavoie, president and CEO of Pelican International. “With more than 800 employees in three manufacturing sites strategically located in North America, an improved distribution network and a strong commitment to innovation, the momentum behind both brands is stronger than ever.”
AEA has finalized two funds with the hard cap close of its seventh flagship fund, AEA Investors Fund VII LP (Fund VII), with total equity commitments of $4.8 billion, and its fourth small business fund, AEA Investors SBF IV LP (Fund SB), with total equity commitments of $877 million.
With the closing of these new funds, AEA has announced the transition of Brian Hoesterey from president to CEO. AEA’s former chairman and CEO, John Garcia, will remain as executive chairman and continue to serve on the investment committees of all AEA funds with Mr. Hoesterey. Mr. Hoesterey and Mr. Garcia both joined AEA in 1999.
Fund VII has already closed on two investments with the buys of 
across 162 company-owned units in Alabama, Tennessee, Georgia, and Mississippi (acquired from 
Like its larger sibling, Fund SB also makes control investments in North American and European-headquartered companies that are active in the value-added industrial, consumer and services sectors, However, Fund SB targets smaller companies that have enterprise values between $25 million and $250 million. Alan Wilkinson and John Cozzi, both partners at AEA, are the co-heads of the small business funds.
Fund SB closed its first investment in July 2019 with the buy of 
Palladium Equity Partners has sold Raben Tire Company, an independent tire dealer and automotive services provider, to The Goodyear Tire & Rubber Company. Palladium acquired Raben Tire in December 2014 in partnership with the founding Raben family.
“We knew when we invested in the company in 2014 that Raben had established a strong brand reputation in the Midwest by offering excellent service to its loyal customer following and strong relationships with its suppliers,” said Chris Allen, a managing director of Palladium. “It was important to Palladium to work closely with Scott Cisney and his team to execute a focused strategy that recognized the achievements of this family-founded company while expanding and strengthening the business through organic and M&A initiatives.”
New York City-based 
Main Street Capital has formed 
“We’re very pleased to add the Compass Precision group of companies to our portfolio. It’s a fundamentally sound group of businesses with a breadth of manufacturing capabilities and strong customer relationships,” said Dennis Prado, a managing partner at Main Street. “We are thrilled to be partnering with Gary Holcomb and the existing management team, and we intend to make sure they have the resources needed to grow and expand. The industry is highly fragmented and there are a lot of precision metal companies that would fit well with Compass Precision.”
Corinthian Capital Group has closed a second dividend recapitalization of Best Lighting Products, one of the largest designers and manufacturers of private-label emergency and exit lighting products in the United States.
“Since our acquisition of Best Lighting, we have worked with management to implement a number of initiatives to accelerate growth, including introducing new products, expanding warehouse capacity, and improving strategic supply chain management. I commend the management team for executing on these initiatives and for doing a phenomenal job growing the business,” said Peter Van Raalte, CEO and president of Corinthian Capital.
Investment bank Brown Gibbons Lang & Company (BGL) has added Todd Cassidy as a new managing director within its industrials team.
“I’m thrilled to be joining BGL,” said Mr. Cassidy. “I have been impressed with the firm’s strong reputation and longstanding commitment to the industrial sector. It’s a great time to be joining a team that is committed to growth and is doing so rapidly. I look forward to expanding the firm’s industrial coverage and expertise in the automotive and aftermarket spaces.”
“Todd is an accomplished and trusted advisor who knows how to drive value for his clients,” said Andrew Petryk, the head of BGL’s industrials team. “His unique background in manufacturing and product design, coupled with his years of investment banking experience, have made him a sought-after banker in the automotive industry. We look forward to leveraging his transaction and operational experience for the benefit of our clients.”
Knowlton Development Corporation has agreed to merge with HCT Group to create a global contract manufacturer of cosmetics products.
KDC
“Together, these businesses will provide greater innovation and growth opportunities in one of the most attractive subsectors in the consumer packaged goods space,” said Justine Cheng, the chair of the KDC board of directors and a partner at Cornell Capital. “KDC and HCT have best-in-class management teams and we expect that coupling KDC’s manufacturing capabilities with HCT’s packaging design expertise will enable the new platform to better serve its customers globally. In addition, the transaction will improve the overall financial profile of the companies through further diversification and increased scale.”
“This transformative transaction will enhance how we serve beauty and personal care brands around the world,” said Mr. Whitley. “Our vertically integrated platform will offer the industry a true one-stop solution. With the support of our partners at Cornell Capital, as well as CDPQ, IQ and HarbourVest, we have been able to build our reputation as a top-tier innovator for an expanded base of customers. HCT’s cutting-edge designs, engineering, manufacturing and global reach will enable us to further elevate our product and service offerings to better serve and anticipate the evolving needs of our valued customers.”
PLZ Aeroscience, a portfolio company of Pritzker Private Capital, has acquired Liquid Technologies, a contract formulator and manufacturer of personal care products, from Frontenac.
Frontenac acquired LTI in April 2016. “During our ownership, we invested in the successful implementation of numerous growth initiatives and unlocked significant value through operational improvements,” said Neal Sahney, a vice president at Frontenac. “The company doubled in size in under four years and is positioned for continued growth under new ownership and leadership from PLZ.”
“Partnering with growth-focused, founder-owned businesses is a core pillar of our strategy and we are delighted by the successful partnership we forged with Liquid Technologies,” said Ron Kuehl, a managing director of Frontenac.
