SCA Performance, a portfolio company of Kinderhook Industries, has acquired Rocky Mountain Truckworks. Kinderhook acquired SCA Performance, an OEM authorized specialty vehicle manufacturer, in April 2018 in partnership with the founding McSweeney family.
SCA is a provider of vehicle upgrades for specialty light-duty trucks. The company’s upgrades include wheels, tires, bumpers, lighting, suspensions, fenders, badging, side steps, running boards, and exhaust systems. SCA receives new vehicles directly from original equipment manufacturers (OEMs) including Chevrolet, Ford, GMC, Jeep, and Dodge, adds its specialty packages and then sells the up-fitted vehicles to new truck dealers with a full OEM warranty. Since its founding in 1979, SCA Performance has produced over 120,000 custom vehicles. The company is headquartered northeast of Birmingham in Trussville, AL (www.scaperformance.com).
Rocky Mountain Truckworks (RMT) is an OEM authorized specialty vehicle manufacturer for light-duty trucks and is a direct competitor of SCA as an OEM authorized specialty vehicle manufacturer for GM and RAM light-duty trucks. RMT is headquartered in Fort Collins, CO (www.rockymountaintruckworks.com).
The shareholders of RMT will roll a portion of their sale proceeds into an equity stake in SCA, and former RMT vice president Preston Hess will remain involved in operations going forward as SCA’s General Manager.
“RMT is the perfect acquisition to expand our distribution footprint to the Western United States,” said SCA CEO, Michael McSweeney. “We are now the only specialty vehicle manufacturer with a nationwide footprint.”
“Michael and his team have done a tremendous job growing SCA since we acquired the business last year,” said Tom Tuttle, managing director of Kinderhook. “We are excited about SCA partnering with another leading specialty vehicle manufacturer and expanding its distribution and customer footprint to the Western United States.”
Kinderhook makes control investments in companies with transaction values of $25 million to $150 million in which the firm can achieve financial, operational and growth improvements. The firm makes investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations, and existing small capitalization companies lacking institutional support. Sectors of interest include healthcare services, environmental/business services, and automotive/light manufacturing. Kinderhook was founded in 2003 and is based in New York (www.kinderhook.com).
The buy of RMT represents Kinderhook’s 71st automotive-related transaction.
Financing for the transaction was provided by Regions Bank (www.regions.com).
© 2019 Private Equity Professional | March 25, 2019
