Valesco Industries Invests in TopDown
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Valesco Industries Invests in TopDown

The buy of TopDown is the twelfth platform investment closed by Valesco’s second fund

TopDown’s products include replacement convertible tops, seat covers, headliners, carpet and door panels

SOURCE: Getty Images

Valesco Industries has acquired TopDown, a provider of branded automotive aftermarket products, from River Associates.

TopDown is a designer, manufacturer, and supplier of automotive aftermarket products sold under eight company-owned brands including GAHH Automotive, Robbins Auto Top, EZ On Auto Tops, and CalTrend. TopDown’s products include replacement convertible tops (according to the company, it is a leader in replacement convertible tops), seat covers, headliners, carpet and door panels, and Jeep tops.

The company’s products – available for almost every vehicle make, model and production year – are sold through distributors, automotive trim shops, and direct-to-consumer. TopDown, led by CEO Rodney Wells, is headquartered in North Hollywood, California.

TopDown was formed by River Associates in May 2018 to acquire GAHH Automotive from Argenta Partners. The buy of TopDown is the twelfth platform investment closed by Valesco’s second fund.

“We are thrilled to partner with the talented team at Valesco Industries,” said Mr. Wells. “TopDown’s experienced leadership team and market-leading brands are well-positioned for continued growth which we are confident we can accelerate with the support of our partners at Valesco Industries.”

In addition to TopDown’s senior management team, Valesco’s equity and subordinated debt co-investors include Brookside Capital Partners, Patriot Capital, and Tecum Capital. Senior debt, both a term loan and revolver, were provided by Enterprise Bank.

Valesco makes control and non-control investments of $5 million to $25 million in companies that have from $15 million to $100 million in revenue, a history of profitability, and at least $3 million of cash flow. Sectors of interest include manufacturing, distribution and business-to-business services. Dallas-headquartered Valesco was founded in 1993 and is led by Bud Moore, Heather Hubbard and Jack Sadden.

Valesco closed its second fund, Valesco Fund II LP, with $293 million in committed capital in February 2018. The buy of TopDown follows Fund II’s December 2021 buy of MediaTech, a Michigan-based manufacturer of custom and semi-custom furniture – seating, tables, desks, storage, and workstations – used in the K-12 education market.

Chattanooga, Tennessee-based River Associates invests in US and Canadian-based companies with revenues of $20 million to $100 million and EBITDA of $3 million to $15 million. Sectors of interest include niche manufacturing, high margin distribution, industrial services, and business services.

© 2022 Private Equity Professional | March 10, 2022

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