Drake Automotive Closes Fourth Add-On

Drake Automotive Closes Fourth Add-On

Drake Automotive Group, a portfolio company of Huron Capital, has acquired Proforged, a designer and distributor of chassis parts.

Proforged sells more than 2000 SKUs of chassis parts including ball joints, idler arms, tie rod ends, center links, pitman arms, control arms, and sway bar end links. The company’s products are sold through online auto parts retailers including Amazon, JEGS, and Summit Racing Equipment.

Proforged, based in Boulder, CO, was founded by Zack Kanter in 2010 and is currently led by operations manager Tony Ou (www.proforged.com).

“With this transaction, Drake adds a steering and suspension parts supplier,” said Huron Capital Vice President Michael Zukas. “We believe the expertise and capabilities Proforged offers will complement and strengthen Drake’s position within the automotive aftermarket parts industry.”

Drake Automotive Group is an automotive aftermarket parts brand serving the classic car, off-road, and late model “muscle car” categories. The company is headquartered in Henderson, NV (www.drakeautomotivegroup.com).

The buy of Proforged is the fourth add-on acquisition since Huron acquired Drake in January 2016. The earlier add-ons were Fender Gripper, a Tyler, TX-based manufacturer of aftermarket protective fender covers, trunk mats, and carpet underlayments, acquired in November 2016; Carroll Shelby Wheel Company, a Las Vegas-based designer and manufacturer of aftermarket wheels, was acquired in October 2017. Drake acquired the assets of the business and simultaneously executed a license for the Carroll Shelby Wheel name from Carroll Shelby Licensing; and in November 2017, Drake acquired OG Innovations, a maker of pre-cut automotive graphics kits based in Canoga Park, CA.

“Drake and Proforged share common core values – a commitment to making aftermarket parts that help car owners keep their muscle cars, off-road vehicles and classic cars going fast – making this transaction a natural fit,” said Drake CEO Keith Belair. “And like our prior acquisitions, we believe the combination of Drake and Proforged will better position both companies for growth and provide a better experience for our customers.”

Huron Capital invests up to $70 million per transaction in middle-market companies that have revenues up to $200 million and EBITDAs of $5 million or more. Sectors of interest include specialty manufacturing, business services, consumer goods & services, and healthcare. Huron was founded in 1999 and has offices in Detroit and Toronto (www.huroncapital.com).

© 2018 Private Equity Professional | May 14, 2018

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