Atlantic Street Capital has closed its sale of All Star Auto Parts, a specialty distributor of alternative automotive parts, to BBB Industries, a portfolio company of Clearlake Capital.
Atlantic Street acquired All Star Auto Parts (previously All Star Auto Lights) in September 2019 when the company’s business focused solely on lighting products. In September 2021, the company closed the add-on acquisitions of Tennessee-based Jante Wheel and Indiana-based Perfection Wheel. Almost a year later in August 2022, All Star acquired Blackburn OEM Wheel Solutions, an Ohio-based automotive aftermarket supplier of new and refurbished OEM steel and alloy wheels, center caps, and wheel covers. At the time of this acquisition, Blackburn was the largest privately held provider of original equipment replacement wheel products in the United States.
Today, Orlando-headquartered All Star is a provider of more than 20,000 SKUs of alternative automotive replacement parts including both remanufactured OEM and aftermarket lights and wheels. The company’s products include recycled and refurbished OEM parts and certified aftermarket products, including headlamps, tail lamps, park lamps, fog lamps, side view mirrors, wheels, wheel covers and center caps for both foreign and domestic vehicles.
All Star primarily focuses on the collision repair and tire service channels in the United States and its customers include independent auto body shops and multi-site operators of collision repair centers. Orlando-headquartered All Star, led by CEO Andrew Sexton, was founded in 2004 by former CEO Matt Immerfall and operates 13 distribution facilities nationwide.
“We are very proud of All Star’s success over the past 20 years, and it was a significant opportunity to partner with Atlantic Street in 2019,” said Mr. Immerfall. “Their strategic guidance and capital resources helped guide our investments in systems to enhance data quality and provide robust business intelligence, expand facilities, and invest in people to build the organization and functional leadership. We thank them for their great partnership and confidence in the business.”
All Star primarily focuses on the collision repair and tire service channels in the United States and its customers include independent auto body shops and multi-site operators of collision repair centers. Orlando-headquartered All Star, led by CEO Andrew Sexton, was founded in 2004 by former CEO Matt Immerfall and operates 13 distribution facilities nationwide.
“We are very proud of All Star’s success over the past 20 years, and it was a significant opportunity to partner with Atlantic Street in 2019,” said Mr. Immerfall. “Their strategic guidance and capital resources helped guide our investments in systems to enhance data quality and provide robust business intelligence, expand facilities, and invest in people to build the organization and functional leadership. We thank them for their great partnership and confidence in the business.”
“We provide value-added, quality products and service to our customers while at the same time extending the useful product life cycle,” said Mr. Sexton. “Through our sustainable remanufacturing model, we also help prevent materials from entering the waste stream. Atlantic Street has been a terrific partner over the past five years as we transformed the business, and we look forward to being a key division of BBB Industries.”
“Our goal was to help transform All Star through strategic acquisitions and to expand its product portfolio and build its geographic reach, creating a nationwide footprint to service local shops and provide a one-stop solution for national multi-shop operators,” said Phil Druce, a partner at Atlantic Street. “We thank All Star’s entire management team and founder Matt Immerfall for their strategic vision and leadership over the past five years and believe the company will continue to thrive and evolve as part of BBB Industries.”
Clearlake Capital acquired BBB Industries from Genstar Capital in July 2022 with Genstar maintaining a minority equity interest in the business.
Today, BBB’s products include remanufactured starters, hydraulic steering, brake calipers, electric power-assisted steering and turbochargers which are used by light vehicle owners, professional technicians and franchised dealers. The company’s products are sold through warehouse distributors, retail outlets, and OEM service organizations. In November 2021, BBB launched TerrePower, a new operating division that upcycles solar components and electric batteries. Upcycling is the process of taking a used part and re-manufacturing it for a second life avoiding both recycling and disposal.
BBB, led by CEO Duncan Gillis, was founded in 1987 and is headquartered near Mobile in Daphne, Alabama, with manufacturing facilities in Michigan, Tennessee, North Carolina, Missouri, Texas, Mexico, Denmark, and Poland, and 13 distribution offices across the US, Canada, Europe, and Mexico.
“All Star will strengthen our electronics offering and will allow us to provide additional product and service options, and we are thrilled at the prospect of welcoming the All Star team to BBB,” said Mr. Gillis. “Our goal is to continue to spread the power of sustainable manufacturing at scale to deliver even greater value to the markets we serve, and we are excited about the growth opportunities that lie ahead.”
Clearlake invests in industrials and energy, software and technology-enabled services, and consumer sectors. The firm was co-founded by José Feliciano and Behdad Eghbali in 2006 and is headquartered in Santa Monica, California. In May 2022, Clearlake held a hard cap and oversubscribed final close of its seventh private equity fund, Clearlake Capital Partners VII LP, with $14.1 billion in commitments.
Atlantic Street invests from $15 million to $75 million in companies with EBITDA from $4 million to $25 million. The firm invests across a range of sectors but has a specific interest in healthcare, multi-unit retail, business services, and consumer products and services. Atlantic Street was founded in September 2006 by Peter Shabecoff and is based in Stamford, Connecticut with an additional office in West Palm Beach, Florida.
BlackArch Partners was the financial advisor to All Star on this transaction.
© 2024 Private Equity Professional | August 23, 2024
