Appearance Technology Group (ATG), a portfolio company of MPE Partners, has acquired BAF Industries.
MPE acquired Appearance Technology Group (then Hi-Tech Industries) from NiTEO Products, a portfolio company of Highlander Partners, in May 2022. In October 2023, Hi-Tech was rebranded as Appearance Technology Group.
Today, ATG is a provider of branded and private label car care products and specialty aerosols used in the automotive reconditioning market. The company’s more than 3,500 SKUs are sold across more than fifteen brands and include aerosol carpet dyes and specialty paints; aerosol cleaners and odor eliminators; microfibers, chamois and squeegees; buffing pads, brushes, wash mitts and sponges; and other related products. ATG is headquartered near Detroit in Farmington, Michigan and operates five additional facilities in Michigan (3), California (2).
Family-owned BAF is a manufacturer of PRO® branded, consumable car care liquid chemicals and aerosols used by professionals and do-it-yourself users. The company’s product portfolio includes soaps, cleaners, degreasers, aerosols, waxes, polishes, compounds, and coatings. BAF is headquartered near Los Angeles in Tustin, California, with another facility near Cincinnati in Florence, Kentucky.
BAF was founded in 1935 by Jack W. Burford as Burford Automotive Finishes (BAF). In 1952, his brother Ken Burford and son Frank Bell joined the company. In 1996, Mr. Bell purchased the family business and became sole owner. Following his passing in 2012, ownership of BAF transitioned to his sons, John Bell and Michael Bell.
“ATG’s vision, reputation, and track-record in partnering with industry leading brands resonated with us and the PRO® brand that our family has built,” said the Bells in a released statement. “We look forward to partnering with ATG to carry on the legacy and vision of our grandfather, Jack Burford, and father, Frank Bell.”
“BAF and its PRO® brand draw on a rich history and longstanding reputation within the professional detailing market,” said Nathan Iverson, the CEO of ATG. “We look forward to expanding the reach of the PRO® brand across our combined distribution footprint and building upon the brand’s storied history.”
“We are incredibly excited to welcome BAF’s PRO® brand to the ATG portfolio as we continue to expand our offering of leading brands serving the needs and preferences of professional and DIY end-users,” said Rory MacLellan, a vice president at MPE.”
The buy of BAF is ATG’s fifth acquisition. Following the May 2022 initial buy of Hi-Tech, in July 2022 it acquired 3D International, a California-based designer and manufacturer of polishes, waxes, ceramic coatings, and liquid chemicals sold through professional and consumer channels. In October 2023, ATG closed the acquisitions of sister companies RBL Products and Kwik Paint Products, two Detroit-based suppliers of consumable protective plastics, masking films, and paint preparation products used by automotive original equipment manufacturers and paint, body, and equipment professionals.
The fifth add-on was the January 2024 acquisition of P&S Detail Products, a California-based designer and manufacturer of detailing products – cleaners, dressings, polishes, waxes, and coatings – used by professionals and DIY users.
Cleveland and Boston-based MPE invests in lower middle-market companies that are valued at up to $250 million and have EBITDA of at least $5 million. Sectors of interest include high-value manufacturing and commercial and industrial services.
Apogem Capital, a subsidiary of New York Life, which provided financing to support the buy of Hi-Tech by MPE in May 2022, provided financing to support the buy of BAF. Apogem was formed in April 2022 as a new brand to combine the operations of GoldPoint Partners, Madison Capital Funding, and PA Capital (previously these three groups operated under the New York Life Investments Alternatives brand). Today, New York City-headquartered Apogem is led by CEO Christopher Taylor and has more than $37 billion of assets under management.
© 2024 Private Equity Professional | May 14, 2024
