Primeritus Financial Services, a portfolio company of Kinderhook Industries, has acquired Consolidated Asset Recovery Systems from Greenridge Investment Partners which acquired the company in December 2015.
Consolidated Asset Recovery Systems (CARS), through its web-based software platform, Internet Based Electronic Asset Management (IBEAM), provides technology and services to finance companies, forwarders and repossession agents that improve asset repossession and remarketing performance. CARS has approximately 50 employees and was founded in 2005 by Steve Norwood and Terry Groves. The company is headquartered in Raleigh, NC (www.ez-recovery.com).
In February 2012, Kinderhook formed Primeritus Financial Services in partnership with three automotive finance executives – Chuck Tapp, Phil Hanks and Cam Hitchcock – and acquired the assets of ASR Nationwide, a provider of collateral recovery services to financial institutions.
The purchase of CARS is the seventh add-on acquisition completed by Primeritus under Kinderhook ownership. The six earlier acquisitions were Global Investigative Services (February 2017); Roquemore (January 2016), Repo Remarketing (February 2014), Renovo Services (October 2012), M. Davis Company (June 2012), and the platform acquisition of ASR Nationwide (February 2012).
Today, Primeritus is a national provider of repossession management, remarketing, title services and skip tracing services to the auto finance industry. The company, led by CEO Mike Thomas, is based in Nashville (www.primeritus.com). “The addition of CARS to the Primeritus family of companies demonstrates our ongoing efforts to grow our business while further diversifying our brands,” said Mr. Thomas. “We are very excited to grow in size and scale and we will continue to invest in technology and operational capabilities which add value.”
“We are excited to combine two best of breed providers of recovery management, skip tracing, and remarketing services to the auto finance industry,” said Paul Cifelli, a managing director of Kinderhook Industries. “The combined company represents the leader in the industry with a substantial opportunity to enhance its performance and operational capabilities while leveraging a unique set of technological capabilities to maximize value for its clients.”
Kinderhook makes control investments in companies with transaction values of $25 million to $150 million in which the firm can achieve financial, operational and growth improvements. The firm makes investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations, and existing small capitalization companies lacking institutional support. Sectors of interest include healthcare services, environmental/business services, and automotive/light manufacturing. Kinderhook was founded in 2003 and is based in New York (www.kinderhook.com).
Greenridge Investment Partners, the seller of CARS, invests up to $10 million of capital in companies that are active in the business services, software and technology services, education and training, healthcare services, and media and communications sectors. The firm was founded by Jack Cardwell and Ben Moss and is headquartered in Austin (www.greenridgeinv.com).
Twin Brook served as administrative agent on $102.5 million of financing to support the transaction. Chicago-based Twin Brook is the middle market direct lending arm of Angelo Gordon. The firm targets senior financing opportunities up to $400 million with hold sizes across the Twin Brook platform ranging from $25 million up to $150 million. The firm provides financing to support sponsor-led buyouts and recapitalizations of companies with $3 million to $50 million in EBITDA, with an emphasis on companies with $25 million of EBITDA and below (www.twincp.com).
© 2019 Private Equity Professional | April 10, 2019
