Soundcore Capital Partners has completed the acquisition of Alloy Wheel Repair Specialists, a full-service alloy wheel repair and replacement company. This marks the first platform investment for Soundcore since its launch in April, 2015.
Alloy Wheel Repair Specialists (Alloy) provides on-site repair of cosmetic damage to alloy wheel cores, off-site remanufacturing of structurally damaged wheels, and OEM replacement parts through the company’s retail network. Alloy and its franchisees currently operate in 47 US states and 15 countries, servicing more than 8,000 auto dealerships, collision shops, tire store accounts, rental car agencies, auctions and automotive centers, and retail consumers. Alloy was founded in 2001 and is headquartered in Norcross, GA (www.awrswheelrepair.com).
At closing of the transaction, Alloy Founder Tom Morris stepped down from his leadership role and Rob Wheeley, one of the company’s franchisees, was appointed CEO. Mr. Morris retains a minority stake in the business and will be a member of the Board of Directors.
“We are very excited to announce Alloy Wheel Repair Specialists as Soundcore’s first-ever platform investment,” said Jarrett Turner, Managing Partner of Soundcore. “Alloy is perfectly aligned with our focus on founder- and family-owned businesses in fragmented industries, with stable, recurring revenue, where we can drive growth through accretive add-on acquisitions and operational improvements. Tom has built a market-leading company and we look forward to accelerating Alloy’s growth.”
Also at closing, Soundcore named Ken Walker and Bill Lasky as additional Alloy board members. Mr. Walker was formerly the CEO of Meineke Car Care Centers; Driven Brands; Parts, Inc.; and Cardis Corp., and is a past Vice Chairman of AAA and past Chairman of the International Franchise Association. Mr. Lasky, a Soundcore Operating Partner, has been appointed Chairman of Alloy. He has more than 40 years of experience in the auto industry including senior executive or board positions at Stoneridge, Accuride Corporation and Affinia Group.
According to Soundcore, wheel repair is among the fastest-growing sub-sectors within the auto-reconditioning market, accounting for more than $750 million in annual revenues in the US alone.
“I am very fortunate to be stepping into a great situation at Alloy,” said Mr. Wheeley. “There is a tremendous opportunity for Alloy to grow organically and through strategic acquisitions. With Soundcore’s resources and the experience that Ken Walker and Bill Lasky bring, we have a huge advantage to make investments in the business that really matter, enhance our operational execution, and really outpace the competition.”
Soundcore Capital Partners invests from $4 million to $30 million of control equity in lower middle market companies that are headquartered in the US or Canada. Typical targets will have from $3 million to $15 million in EBITDA. Sectors of interest include automotive, building products, business services, chemicals, consumer products, distribution, energy services & products, food & beverage, general manufacturing, healthcare services, industrial machinery & services, packaging, plastics, and transportation. Soundcore was founded in 2015 and is based in New York (www.soundcorecap.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 11-17-15