NiTEO Products, a portfolio company of Highlander Partners, has sold its Hi-Tech Industries subsidiary to MPE Partners.
Hi-Tech is a provider of branded and private label car care products and specialty aerosols used in the automotive reconditioning market. The company’s more than 2,300 SKUs of products include aerosol carpet dyes and specialty paints; aerosol cleaners and odor eliminators; microfibers, chamois and squeegees; buffing pads, brushes, wash mitts and sponges; and other related products.
Hi-Tech, led by CEO Nathan Iverson, is headquartered near Detroit in Farmington, Michigan and operates a second facility in nearby Southfield, Michigan.
“I am excited to partner with MPE to accelerate our success as a leader in the professional automotive appearance industry with a focus on growing our business both organically and via M&A,” said Mr. Iverson. “We are very appreciative of the support that Highlander and NiTEO provided during our tenure and are excited to continue our growth with MPE.”
“We are excited to partner with Nathan and the rest of the Hi-Tech team and look forward to further growth at the company through both organic and inorganic initiatives,” said Constantine Elefter, a principal at MPE.
Highlander formed Dallas-headquartered NiTEO in July 2015 to acquire certain car care assets and brands from Valvoline. Additional add-on acquisitions by NiTEO included the buys of AP Formulators (September 2016), Trans-Mate (November 2016), Hi-Tech (February 2017), Cyclo (June 2017), the air care assets of Kraco Enterprises (April 2018), and the Motor Medic automotive chemical products portfolio of RSC Chemical (May 2018).
Today, through these add-on acquisitions, NiTEO manufactures and distributes automotive appearance, car wash chemicals, air care products, and performance and maintenance chemicals, under the brand names of Car Brite, Pyroil, Motor Medic, AP Formulators, Trans-Mate, Cyclo, Ozium, and Scents.
Specific products of NiTEO include tire and wheel cleaners, degreasers, waxes, polishes, interior cleaners, air sanitizers, leather conditioners, and fuel system additives. These products are distributed nationwide to the car wash, dealer, auction, do-it-for-me, convenience store, service station and retail segments on a direct basis and through a network of distributors.
The sale of Hi-Tech is part of NiTEO’s strategy to focus on its car wash, air care, and performance and maintenance chemical brands that are manufactured at its facility located near Memphis in Hernando, Mississippi.
“Highlander is very happy with the performance of Hi-Tech over the past five years, and I look forward to watching Nathan and his team achieve new levels of success in their next phase of growth,” said Jeff Hull, the president and managing partner of Highlander.
Highlander makes investments in middle-market businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Sectors of interest include manufacturing, consumer products, industrial goods, automotive accessories, packaging, food and beverage, and specialty chemicals. The firm has over $2 billion in assets under management and is based in Dallas.
Cleveland and Boston-based MPE invests in lower middle-market companies that are valued at up to $250 million and have EBITDA of at least $5 million. Sectors of interest include high-value manufacturing, and commercial and industrial services.
Apogem Capital, part of New York Life, provided financing to support the buy of Hi-Tech by MPE. Apogem was formed in April 2022 as a new brand to combine the operations of GoldPoint Partners, Madison Capital Funding, and PA Capital (previously these three groups operated under the New York Life Investments Alternatives brand). Today, New York City-headquartered Apogem is led by CEO Christopher Taylor and has more than $37 billion of assets under management.
Hennepin Partners was the financial advisor to Highlander Partners on the sale of Hi-Tech.
© 2022 Private Equity Professional | May 19, 2022
