Vehicle Accessories (VAI), a portfolio company of Kinderhook Industries, has acquired Cord Automotive International.
Cord Automotive is a designer and producer of lightweight and corrosion-resistant aluminum vehicle accessories including running boards, door sills, bed rails, and other automotive accessories that are sold to automotive original equipment manufacturers. Cord was founded as Cord Automotive Light Alloy Accessories in 2006 by William Cord and Robert Crandall, and today is led by Mr. Cord with a headquarters near Los Angeles in Placentia, California.
“Partnering with Vehicle Accessories and Kinderhook will allow for cross-selling opportunities within overlapping customer bases and the ability to leverage existing relationships across both Cord Automotive and VAI,” said Mr. Cord.
Vehicle Accessories (VAI) is a manufacturer of metal and plastic automotive products including protective door edge guards, all-weather floor mats, splash guards, bodyside moldings, bumper protectors, running boards, door sills, and bed rails.
Kinderhook formed Vehicle Accessories 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. The buy of Cord is the sixth add-on acquisition for the platform following the buys of Adell Group (2019), Powerflow (2019), Hope Valley Industries (2020), AIM Group (2020), and Remington Global (2021).
VAI products are sold to automotive OEMs including Toyota, Lexus, Ford, Subaru, Nissan, Infiniti, Honda, Hyundai, Kia, General Motors, and Chrysler and are installed post-production and are typically sold to end consumers as part of upgraded protection packages. VAI, led by CEO J Pearson, has facilities in Texas, New York, California, Ontario, and Quebec.
“The team is thrilled for Cord Automotive to join VAI,” said Mr. Pearson. “The company has a long, successful history of offering best-in-class accessories to OEMs. We are eager to build upon that success with Cord Automotive as part of the VAI family and look forward to welcoming Bill Cord to the VAI team as the president of Cord Group and a member of VAI’s board of directors.”
“VAI is happy to announce another strategic acquisition that will serve to further diversify VAI’s business across both product categories and OEMs,” said Tom Tuttle, a managing director at Kinderhook. “Cord Automotive has forged strong relationships with OEMs, including Toyota, for whom Cord Automotive is the #1 running board accessory supplier. The team looks forward to expanding Cord Automotive’s OEM relationships across all of VAI.”
New York City-based Kinderhook has over $3.3 billion of committed capital and has closed more than 300 investments and follow-on acquisitions since its founding in 1983. 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. Sectors of interest include healthcare services; environmental and business services; and automotive and light manufacturing.
Twin Brook Capital Partners, as administrative agent, provided debt financing to support the acquisition of Cord Automotive. Chicago-based Twin Brook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million. Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.
Also providing financing were Kayne Anderson Capital Advisors, and Alliance Partners.
© 2022 Private Equity Professional | February 8, 2022
Vehicle Accessories (VAI), a portfolio company of Kinderhook Industries, has acquired Cord Automotive International.
