Transtar Holding Company (Transtar), a distributor of original equipment and aftermarket automotive products and a portfolio company of Blue Point Capital Partners, has acquired family-owned automotive parts distributor PPi Automotive.
PPi Automotive provides aftermarket auto parts to professional installers, repair shops and dealerships in greater Pittsburgh and surrounding areas.
The company was founded by Richard Johnston in 1974 and is headquartered in Pittsburgh.
Transtar’s
products include original equipment, aftermarket, and remanufactured transmission and driveline-related products sold under the Transtar, RECON Certified, King-O-Matic, TransMart, Nickels Performance, ProKing, Transtar Autobody Technologies, and ATCO brands. The company’s customers include independent and franchise transmission repair shops, automotive general repair businesses, production rebuilders, and resellers.
Transtar was founded in 1975 and was acquired in 2005 by Linsalata Capital Partners and Norwest Mezzanine Partners. In 2010, Friedman Fleischer & Lowe acquired the business and closed a large add-on acquisition in 2014 with the buy of ETX, a supplier of transmission replacement parts, air conditioning compressors, and power steering assemblies, from Jordan Industries and The Edgewater Funds. In November 2016, Transtar filed for bankruptcy protection and in April 2017 it exited bankruptcy under the control of its lenders led by Silver Point Capital. Blue Point acquired a majority interest in Transtar in January 2021.
Today, Transtar operates through two business units: NexaMotion Group and The CoverFlexx Group. Post closing, PPi will operate as part of NexaMotion. Transtar is headquartered near Cleveland in Walton Hills, Ohio, and operates more than 100 branches across the US, Canada and Puerto Rico.
“Transtar’s investment in PPi further affirms our M&A growth strategy and strengthens our commitment to partnering with family-owned companies,” said Brian Castleberry, a partner at Blue Point. “We are proud to support the Transtar platform as it continues to make its mark throughout the United States and Canada.”
With the buy of PPi, Transtar has now closed four add-on acquisitions. The three earlier add-ons were Pro Form Products, an Ontario-based manufacturer of refinishing and repair products used in automotive, aviation, industrial and marine applications (February 2023); C&M Auto Parts, a New Jersey-based wholesale supplier of truck and automotive parts with a focus on undercar and under-hood products (March 2023); and Arch Auto Parts, a New York-based automotive parts distribution business (December 2023).
Transtar continues to seek add-on acquisitions to increase its product capabilities and expand its geographic coverage.
“Transtar’s partnership with PPi aligns with our strategy to expand our general repair offerings and builds on our momentum in the Northeast following our December acquisition of New York-based Arch Auto,” said Neil Sethi, the president and CEO of Transtar. “We look forward to working with the outstanding PPi team to continue providing world-class products and customer service to the automotive repair industry.”
Blue Point invests in companies that are active in the industrial, business services, consumer, and value-added distribution sectors and have from $30 million to $300 million in revenue and EBITDA greater than $7 million. The firm has offices in Cleveland, Charlotte, and Seattle.
© 2024 Private Equity Professional | June 20, 2024
