Kinderhook Acquires Original One Parts

Kinderhook Acquires Original One Parts

Kinderhook Industries has acquired Original One Auto Parts. This acquisition is the firm’s 86th acquisition in the automotive aftermarket.

Dallas-headquartered Original One Parts is a provider of recycled, refinished, and certified original equipment manufacturer auto parts that are used in both collision and mechanical repairs. Customers of the company include independent collision repair shops, dealership service centers, and multi-shop locations (MSOs).

Original One was co-founded in 2016 by Wade Hilburn and Benny Cunningham. The business began operations by recycling and refinishing tow hitches but has now expanded into several other parts categories including mechanical, electrical, suspension, bumpers, and appearance (e.g. mirrors, lamps, and grills).

In partnership with Kinderhook, the company will be led by Mr. Hilburn as CEO and by Jerry Sullivan as executive chairman. Prior to co-founding Original One, Mr. Hilburn spent 23 years at AER, a Texas-based engine remanufacturer. Mr. Sullivan is the co-founder of QCSA Holdings (Quad City Salvage Auction), a national chain of salvage auctions previously owned by Kinderhook and sold in 2014 to Copart (NASDAQ: CPRT).

“We have followed Original One’s story since its inception and are thrilled to have the opportunity to partner with Wade and Jerry as the company embarks on its next stage of growth,” said Paul Cifelli, a managing director at Kinderhook. “Original One has developed an innovative business model, with a proven track record of success, that has the potential to significantly “bend the cost curve” of vehicle repair in the US. We are excited to add Original One to our portfolio and look forward to building the business in partnership with management.”

“Partnering with Kinderhook and their extensive experience and network of relationships in the automotive aftermarket will allow us to fulfill our vision for Original One Parts,” said Mr. Hilburn. “Through this partnership, we will consistently deliver the highest quality certified re-conditioned OEM parts with a convenient electronic buying experience at an incredible value.”

New York City-based 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 and business services; and automotive and light manufacturing.

“This partnership will also provide Original One with the access to capital and the resources required to offer an even broader range of high-quality recycled parts to automotive repair facilities throughout the United States,” added Mr. Sullivan. “Going forward, we are positioned to efficiently and effectively support the ongoing efforts of the automotive repair industry, both collision and mechanical, as it strives to mitigate the increasing cost of repairs driven by the on-going sophistication of high-tech vehicles on the road today.”

Kirkland & Ellis provided legal services to Kinderhook on the acquisition of Original One.

Private Equity Professional | June 5, 2020

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