After a six-year hold, Century Park Capital Partners has sold Covercraft Industries to Audax Private Equity. The investment by Audax was completed through its $3.5 billion, sixth private equity fund.
Covercraft is a branded manufacturer of protective covers, with a library that includes more than 300,000 patterns for automotive, marine and outdoor products including full vehicle covers, front and rear seat protectors, front-end masks, dashboard covers, floor mats, window heat-shields, patio furniture and outdoor kitchen covers. Company-owned brands include ADCO, Carver, Marathon and PCI.
Covercraft is headquartered 60 miles south of Oklahoma City in Pauls Valley, Oklahoma with additional manufacturing facilities in California, Colorado, Montana, South Carolina, Texas, and Mexico.
Covercraft was founded in 1965 by Bob Lichtmann and Marty Lichtmann, the son of the founder, served as the company’s CEO until the family sold majority control of the company to Century Park in June 2015. At that time, Marty Lichtmann made a rollover investment in the company and became a member of Covercraft’s board of directors. Today, the company is led by CEO Matt Jordan.
During Century Park’s ownership term, Covercraft established a direct-to-consumer sales channel, added new product lines, and completed five add-on acquisitions. Through this combination of organic growth and acquisitions, Covercraft’s earnings grew nearly eightfold under Century Park’s ownership.
“When you relinquish control of your 50-year-old family business you hope your new partners will respect the traditions, the culture, and the team you have created. My association with Century Park has been everything I could have hoped for and more,” said Marty Lichtmann. “They have done an outstanding job creating value and positioning the company for the future with our new partners.”
Covercraft’s five add-on acquisitions were CoversDirect/CoverQuest, a South Carolina-based marine-focused e-commerce company (April 2019); Carver Industries, a South Carolina-based maker of custom and semi-custom fit boat covers (October 2018); Marathon Seat Covers, a Montana-based manufacturer of custom-fit vehicle seat covers (September 2017); GT Covers, a Colorado-based manufacturer of custom-fit vehicle seat covers (September 2017); and ADCO Products, a California-based maker of recreational vehicle covers and protective covers for lawn and garden furniture (December 2016).
“The Lichtmann family started Covercraft with a focus on creating the best vehicle protection products possible – and did so with a huge emphasis on integrity and quality,” said Mr. Jordan. “Century Park was an outstanding partner and well-aligned to build on that foundation: opening up the direct-to-consumer channel, expanding into new segments like RV and marine, and further growing the seat cover category. I’m terrifically proud of what we’ve accomplished and look forward to taking the next steps on our future path with our new partners at Audax.”
“Covercraft has become a leading player in custom vehicle protection, with strong market share across the automotive, RV and marine categories. The company’s product lines – in seat covers, automotive covers, marine covers, dash covers, and window sunscreens – are best-in-class,” said Guy Zaczepinski, a managing partner at Century Park and the Covercraft investment team leader. “We owe an enormous debt of gratitude to the entire Covercraft workforce; they have worked tirelessly, especially in this most challenging environment, to keep building products. What the team has achieved is impressive, and they are only getting started; the future for Covercraft is very bright.”
Century Park invests from $10 million to $40 million in companies that have revenues of $20 million to $100 million and EBITDA of $3 million to $15 million. Sectors of interest include chemicals, medical products and services, business services, engineered products, and consumer products. The firm is based near Los Angeles in El Segundo, California.
“Covercraft introduced the first custom fit car cover more than 55 years ago and is a long-standing leader in the vehicle protection accessories market,” said Jay Mitchell, a managing director at Audax. “We look forward to partnering with and supporting the company’s highly experienced management team. We believe that they are well-positioned to execute on organic growth opportunities and complete strategic acquisitions.”
Audax invests in middle-market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. Sectors of interest include business and consumer services; energy; healthcare; technology, media and telecom; and industrials including chemicals, infrastructure, and building materials. Audax, with offices in Boston, New York, and San Francisco, is currently investing out of its $3.5 billion, sixth private equity fund.
Stifel, Nicolaus & Company was the financial advisor to Covercraft on this transaction.
© 2021 Private Equity Professional | August 26, 2021
