Praesidian Capital has sold Autobahn Holdings, an operator of indoor go-kart racing tracks, to K1 Speed, the world’s largest indoor go-kart racing operator.
Jacksonville, Florida-headquartered Autobahn operates eleven indoor karting tracks in the United States with locations in Maryland, Alabama, Virginia, Pennsylvania, Florida, Tennessee, and New York. Kart speeds can reach up to 45 miles per hour. Customers of the company include novices, auto racing enthusiasts, racing professionals, and corporate event planners. Praesidian first invested in Autobahn in November 2018.
The go-kart racing sector and K1 are not new to Praesidian. In September 2011, Praesidian provided K1 with $6.6 million in senior debt to provide K1 with expansion capital to open new locations in California, Texas, Florida and Illinois. Praesidian exited this investment in June 2013.
“This successful exit underscores Autobahn’s growth and exceptional management team,” said Tom Duffy, a partner at Praesidian. “The company’s commitment to providing world class experiences has not only resonated with enthusiasts but has also set a new standard in the industry. We are pleased with the result of this investment and its positive outcome for our investors.”
“Praesidian has been an invaluable partner throughout Autobahn’s growth,” said Michael Greene, CEO of Autobahn. “We are grateful for Praesidian’s role in our success and are confident that Autobahn is well positioned for the future.”
K1 Speed is the world’s largest indoor electric kart racing operator. As a result of this acquisition, K1 Speed now operates 83 locations in 29 states and 7 countries. In addition to its indoor electric go kart racing, K1 locations offers food and drinks (including beer and wine) through its Paddock Lounge café, seating and viewing areas, spacious lobbies, electronic games, and private meeting rooms. K1 also holds the K1 Speed E-World Championship, one of the largest karting championships in the country with one of the largest prize purses of any karting championship worldwide. K1 was founded in 2003 by CEO David Danglard and Director of Marketing Susan Danglard and is headquartered in Irvine, California.
The acquisition of Autobahn is the largest in a series of acquisitions by K1 that began in August 2022 with the purchase of Pole Position Raceway and its two company-owned karting centers in Las Vegas, Nevada and Corona, California.
“Autobahn’s passion for indoor karting was undeniable, and I applaud them for promoting it through their leagues and championships,” said Mr. Danglard. “We share this same strong love for the sport, so we’re confident that existing racers will embrace the expanded competition that K1 Speed provides with our E-World Championship.”
Praesidian was founded in 2002 and has been an active provider of senior and subordinated debt along with growth capital to lower middle-market businesses in the United States, United Kingdom, Germany, and selectively in Northern Europe. The firm is headquartered in Oklahoma City, Oklahoma.
© 2024 Private Equity Professional | January 25, 2024
