Kinderhook Closes First Adell Add On

Adell Group, a portfolio company of Kinderhook Industries, has acquired sister companies Powerflow Inc., Powerflow Products Ltd., and Gestion Solutions Plastik Inc. (together Powerflow).

Powerflow is a maker of injection-molded plastic trim products sold to automotive vehicle manufacturers and dealers. The company’s products include splash guards, body side moldings, bumper protectors, and door sills, which are sold to OEM customers including Toyota, Lexus, Subaru, Nissan, Infiniti, General Motors, and Chrysler. Powerflow, led by its founder and CEO Doug Ward, is headquartered in Buffalo, NY with additional offices Toronto, ON and Magog, QE (www.powerflowinc.com) (www.solutionsplastik.com)

Powerflow is the first add-on acquisition for Adell since being acquired by Kinderhook in March 2019. At that time, Kinderhook stated that Adell would serve as a platform for a buy-and-build strategy focused on genuine original equipment manufacturer (OEM) parts and accessories as well as parts that are sold to the aftermarket divisions of automotive OEMs.

Adell is a manufacturer of protective door edge guards that are used by automotive OEMs and installed on some of the most popular vehicle platforms in the United States. The company’s production capabilities include engineering, tooling, extruding, injection molding, metal fabricating, painting, and packaging.

Adell was founded in 1952 and has a 162,500 square foot manufacturing facility and headquarters in the Dallas suburb of Sunnyvale, TX (www.adellcorporation.com).

According to Kinderhook, the combination of Powerflow and Adell unites two of the leading brands in the automotive accessories space. “We are excited to combine two leading brands with established histories of providing quality custom-made products,” said Tom Tuttle, a managing director of Kinderhook. “We look forward to sharing best operating practices between the companies as we continue to build the industry’s leading automotive accessory provider.”

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).

“Powerflow represents a transformational acquisition for Adell as it expands its geographical presence, customer base, and product offerings,” said J Pearson, Adell CEO. “We look forward to working with the Powerflow team to continue building upon their strong brand name and track record.”

Financing for the transaction was provided by BBVA USA, Alliance Partners, and Stifel Bank & Trust.

© 2019 Private Equity Professional | June 27, 2019

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