Clearlake Capital has agreed to acquire BBB Industries, an automotive replacement parts provider, from Genstar Capital.
BBB’s products include remanufactured starters, hydraulic steering, brake calipers, electric power-assisted steering and turbochargers which are used by light vehicle owners, professional technicians and franchised dealers.
The company’s products are sold through warehouse distributors, retail outlets, and OEM service organizations.
In November 2021, BBB launched TerrePower, a new operating division that upcycles solar components and electric batteries. Upcycling is the process of taking a used part and re-manufacturing it for a second life avoiding both recycling and disposal.
BBB was founded in 1987 and is headquartered near Mobile in Daphne, Alabama with manufacturing facilities in Sparta, Tennessee and Reynosa, Mexico, and 13 distribution offices across the US, Canada, Europe, and Mexico.
“I have long admired Clearlake’s strong record of success and look forward to partnering with the team as we continue the company’s evolution,” said Duncan Gillis, the CEO of BBB.
Clearlake invests in industrials and energy, software and technology-enabled services, and consumer sectors. The firm was co-founded by José E. Feliciano and Behdad Eghbali in 2006 and is headquartered in Santa Monica, California with an additional office in Dallas, Texas. In May 2022, Clearlake held a hard cap and oversubscribed final close of its seventh private equity fund, Clearlake Capital Partners VII LP, with $14.1 billion in commitments.
“We see a significant opportunity to partner with BBB’s management team to build upon their core business as well as several compelling growth areas across the automotive and broader industrial and renewable energy ecosystems,” said Mr. Feliciano.
Genstar acquired BBB from Pamplona Capital Management in July 2018 and will maintain a minority equity interest in the business in partnership with Clearlake.
Genstar is an active investor in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDA greater than $15 million. Sectors of specific interest include financial services, software, industrial, and healthcare industries. In April 2021, Genstar held a hard cap close of Genstar Capital Partners X LP with $10.2 billion in capital commitments. San Francisco-headquartered Genstar was founded in 1988 and is led by managing partners Ryan Clark (President), Jean-Pierre Conte (Chairman), Rob Rutledge, Tony Salewski, and Eli Weiss.
J.P. Morgan was the financial advisor to Clearlake and provided committed debt financing to support the acquisition of BBB. Goldman Sachs was the financial advisor to BBB.
© 2022 Private Equity Professional | June 9, 2022
