River Associates has formed TopDown, Inc. to acquire GAHH Automotive, a maker of automotive aftermarket parts and accessories, from Argenta Partners.
GAHH is a designer, manufacturer, and marketer of aftermarket convertible tops, Jeep tops, and other vehicle interiors including seats, carpeting, and door panels. The company’s portfolio of brands includes GAHH, Robbins, and E-Z ON. GAHH’s parts are designed for use on Mercedes, Porsche, Jaguar, BMW, Rolls Royce, Lexus and a range of other automotive brands. The company, led by CEO Rodney Wells, was founded in 1979 is headquartered in North Hollywood, CA (www.gahh.com).
Under Argenta ownership, GAHH completed two add-on acquisitions. In August 2014 it acquired EZ ON Auto Tops and in January 2011 it acquired Robbins Auto Top.
Argenta Partners makes control investments in lower middle-market companies that have revenues between $10 million and $125 million and EBITDA of at least $2 million. Sectors of interest include manufacturing, services, transportation and value-added distribution. Argenta is headquartered in Dallas (www.argentalp.com).
River Associates , the buyer of GAHH, invests in US and Canadian-based companies with revenues of $20 million to $100 million and EBITDA of $3 million to $12 million. Sectors of interest include niche manufacturing, high margin distribution, industrial services, and business services. The firm is investing out of its seventh fund which closed in June 2017 with commitments of $285 million. River Associates was founded in 1989 and is based in Chattanooga, TN (www.riverassociatesllc.com).
“GAHH is an impressive company comprised of several high-quality brands that provide comprehensive offerings to the automotive aftermarket,” said Mike Brookshire, Co-Managing Partner at River Associates. “We were drawn both to their current leadership position in the market as well as their unique position for growth. River is excited to step into a partnership role with Rodney Wells and his management team to pursue that growth, and we believe it will be a very successful chapter for everyone involved.”
Financing for this acquisition was provided by Abacus Finance and Eagle Private Capital. Minneapolis-based Prestwick Partners (www.prestwickpartners.net) was the financial advisor to GAHH and Argenta Partners on this transaction.
© 2018 Private Equity Professional | May 14, 2018
