aftermarket auto parts

Kingswood Buys AutoAnything

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Kingswood Capital Management has acquired AutoAnything, an online retailer of automotive performance parts and accessories, through a corporate carve-out from publicly-traded AutoZone.

AutoAnything’s sells a wide variety of products including tonneau covers, floor mats and liners, brakes, rotors and pads, seat covers, suspension systems, nerf bars and running boards, exhaust, mufflers and tips, and air intake systems. The company is headquartered in San Diego (www.autoanything.com). AutoAnything was founded in 1979 by Selwyn Klein, and his sons David and Trevor launched its online business in 1999. In December 2012 the company was acquired by AutoZone.

“We look forward to working with Kingswood and continuing to provide our customers with market leading products and service,” said Brandon Proctor, President of AutoAnything. “Kingswood’s expertise and operational support will allow us to accelerate the execution of our strategic plan and to reach our full potential as an independent company.”

As part of the transaction, Drew Sanocki, a Kingswood operating executive and an e-commerce veteran, having participated in the sector as a founder, operator, advisor and investor, is joining AutoAnything as Executive Chairman and will be actively involved with the company’s senior management team. “We are excited about partnering with a leader in such a large and expanding category. We look forward to working with the AutoAnything team to innovate and grow the company as a category leader,” said Mr. Sanocki.

“As an early mover in the online automotive aftermarket category, AutoAnything was able to develop some distinct competitive advantages in a large, fragmented and growing market,” said Alex Wolf, Managing Partner of Kingswood. “We are delighted to partner with Brandon, Drew and the entire AutoAnything team to further build upon those strengths for the benefit of AutoAnything’s customers, employees and vendor partners.”

Kingswood Capital Management makes control equity investments of up to $75 million in North American-based companies that have revenues from $100 million to $500 million and that have positive, negative or break-even EBITDA. Sectors of interest include business, government, and healthcare services; consumer and retail; energy; industrials; technology, media & telecommunications; and value-added distribution. The firm was founded in 2013 by Alex Wolf and is headquartered in Los Angeles (www.kingswood-capital.com).

AutoZone (NYSE: AZO) is one of the largest retailers of aftermarket automotive parts and accessories in the United States (www.autozone.com).

Guggenheim Securities (www.guggenheimpartners.com) was the financial advisor to AutoZone.

© 2018 Private Equity Professional | February 28, 2018

The Sterling Group Adds to Safe Fleet

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Safe Fleet, a portfolio company of The Sterling Group, has acquired Rear View Safety, a provider of back up camera systems and other video-based road safety products.

Rear View Safety’s products are sold to the commercial fleet and government fleet sectors and are utilized in recreational vehicles, trucks, trailers, commercial vans, construction, emergency, bus and shuttle, agriculture and industrial vehicles. The company was founded in 2007 and is headquartered in Brooklyn, NY (www.rearviewsafety.com).

Safe Fleet was formed in October 2013 when Sterling acquired R•O•M Corporation (ROM) and Specialty Manufacturing (SMI). Both ROM and SMI were portfolio companies of Century Park Capital Partners. Today, Safe Fleet owns a portfolio of brands that serve five markets including: emergency services, bus and rail, truck and trailer, work truck, and industrial. The company has approximately 1,000 employees and has 600,000 square feet of manufacturing space. Safe Fleet is headquartered south of Kansas City in Belton, MO (www.safefleet.net).

The buy of Rear View Safety is the sixth add-on acquisition that Safe Fleet has completed under Sterling’s ownership. “Safe Fleet will continue to pursue strategic growth across the fleet vehicle market, expanding our product offering both organically and through acquisition,” said Gary Rosenthal, a partner at The Sterling Group. “The company has doubled in size under Sterling ownership.”

The Sterling Group targets controlling interests in manufacturing, industrial services and distribution companies that have enterprise values from $100 million to $500 million.  The firm emphasizes an operational approach in partnership with management teams to grow and improve the companies it acquires.  Sterling was founded in 1982 and is headquartered in Houston (www.sterling-group.com).

“The addition of Rear View Safety expands Safe Fleet’s leadership position in specialty video products for fleet vehicles in North America and creates one of the top suppliers worldwide.  The company’s RVS product line is complementary to Safe Fleet’s existing video products and positions Safe Fleet as a leading video supplier in all of its fleet end markets,” said John Knox, President and CEO of Safe Fleet.  “This acquisition supports our vision to build the leading global provider of safety solutions for fleet vehicles.”

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-25-16

Z Capital Acquires ACCEL Performance Group

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Z Capital Partners, through its portfolio company MSDP Group, has acquired automotive aftermarket parts maker ACCEL Performance Group.

ACCEL is a performance aftermarket parts manufacturer of digital fuel injection systems, fuel injectors, coils, distributors, caps, rotors, ignition wires and spark plugs. Brands include ACCEL, Mr. Gasket, Mallory Ignition, Lakewood, QuickTime and Hays. The company is based in Cleveland (www.accel-ignition.com).

MSDP Group designs, develops, tests and manufactures ignition controls, fuel injection, coils, timing accessories, spark plug wires and other performance accessories.  MSDP sells its products under the MSD®, Racepak®, Superchips® and Edge® brands to customers in the street enthusiast, professional racer and powersports markets. The company has an 84,000 sq. ft. manufacturing facility and approximately 400 employees. MSDP is headquartered in El Paso (www.msdperformance.com).

“ACCEL is a natural fit for MSDP and a valuable addition to the company’s product portfolio,” said James Zenni, Chairman of MSDP and Chief Executive Officer of Z Capital Partners.  “Since making our investment in December 2013, MSDP has experienced significant growth, as well as enhanced its product innovation, brand marketing and distribution strategies.”

Z Capital makes control investments in middle-market distressed companies, operational turnarounds and special situations. The firm targets companies with an enterprise value of less than $1 billion or EBITDA of less than $100 million. Sectors of interest include consumer products, steel and steel processors, agricultural, gaming, leisure, real estate, manufacturing, specialty services and automotive.  The firm has approximately $1.9 billion of capital under management.  Z Capital is based in the Chicago suburb of Lake Forest and has an additional office in New York (www.zcap.net).

“The acquisition of ACCEL significantly enhances our position in ignition technology and allows MSDP to expand our product portfolio aimed squarely at diehard racing and street performance enthusiasts,” said Rick Ruebusch, Chief Executive Officer of MSDP.  “ACCEL complements our existing brands, providing us with both increased capability and an unmatched footprint in the aftermarket platform.”

Monroe Capital provided a credit facility to MSDP Group to support the acquisition of ACCEL Performance Group.

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-15-15