CenterGate Capital has invested in TransGo, a provider of aftermarket parts and kits for automatic transmission repair.
TransGo is a designer and manufacturer of replacement valve body repair kits and other products for automatic transmissions. These kits are used to refurbish or repair malfunctioning valve bodies due to fluid leaks, erratic shifting, or harsh shifting, without having to replace the entire transmission assembly.
The valve body is a component of an automatic transmission that controls the flow of transmission fluid and directs hydraulic pressure to engage and disengage gears. Valve body repair kits typically include gaskets, seals, valves, springs, and other small components.
TransGo products are sold through the aftermarket retail channel and to transmission parts distributors, and transmission remanufacturers.
TransGo was founded in 1959 by Gil “Mr. Shift” Younger. He began his company by engineering and manufacturing valve body repair kits for the professional automatic transmission repair trade. After years of use, the company’s repair kits were considered an essential fix for problematic transmissions and became known as ‘shift kits’ after his nickname. Today, the company’s kits are sold under the SHIFT KIT trademarked brand. TransGo is headquartered near Los Angeles in El Monte, California.
“I am proud of what the TransGo team has accomplished as a leading automatic transmission parts supplier,” said TransGo President John Landry. “We are excited to partner with CenterGate for our next phase of growth. CenterGate’s investment will provide us with the capital and strategic resources to continue our growth trajectory while increasing speed to market and vehicle coverage for our customers.” Post closing, Mr. Landry will continue to lead the business in partnership with CenterGate.
“John and the TransGo team have grown the company by providing innovative products to their customers who require the highest levels of product reliability and customer service. We are excited to partner with TransGo to support their growth,” said Michael Smith, a managing director at CenterGate.
Austin-based CenterGate invests from $10 million to $75 million in equity in North America-based lower middle-market companies that have from $5 million to $30 million of EBITDA. Sectors of interest include business services, manufacturing and consumer. In August, CenterGate held a final and above target closing of CenterGate Capital Partners II LP with just over $375 million of capital.
The buy of TransGo follows CenterGate’s October 2023 buy of Cartridge Technologies (CTI), a Maryland-headquartered provider of managed print services to United States federal government agencies. The company is a prime contractor to the US government and directly enters contracts with federal, state, or local government agencies. Through numerous service programs, CTI specializes in managing and servicing copiers, multi-function devices, laser printers and fax machines. The company serves as a single source for maintenance to all brands of office equipment including, among many others, Xerox, Toshiba, Canon, Lexmark, HP, Sharp, Brother, and Ricoh.
Earlier, in August 2023, CenterGate acquired Poseidon Barge, an Indiana-based manufacturer of sectional barges that are used in marine infrastructure applications including bridge rehabilitation, dam maintenance, and waterway dredging.
Piper Sandler was the financial advisor to TransGo on this transaction.
© 2024 Private Equity Professional | February 9, 2024
