Incline Equity Partners has acquired Continental Batteries, one of the largest independent battery distributors in the United States. Incline partnered with the senior management team of Continental to acquire the business from family ownership. The management made a meaningful investment in the company as part of the transaction.
Continental’s aftermarket batteries are distributed to the automotive, commercial, golf, marine and industrial markets. The company provides on-premise delivery to customers in major cities, as well as to those in regional and rural areas through its multi-location branch network of 21 facilities in Texas, New Mexico, Oklahoma, Kansas, Missouri, Illinois, Iowa and Nebraska. Family-owned Continental was founded by Ralph McCann in 1932 and is headquartered in Dallas (www.continentalbattery.com).
“It was important for us to find a partner that could support our growth within the existing footprint as well as in new geographies,” said Jim McCann, President of Continental. “With Incline’s partnership, we will be able to not only serve our current clients better but also serve new markets.”
In addition to expansion opportunities for Continental through entering adjacent markets and add-on acquisitions in the company’s highly fragmented market, Incline was attracted to the strong value proposition the company provides to its customers. “The technical knowledge of the team, rapid delivery and value-added services make Continental a critical distributor for its customers,” said John Morley, a Managing Director with Incline.
Incline Equity Partners invests from $15 million to $30 million in support of recapitalizations, buyouts and corporate divestitures of lower middle market companies that have EBITDAs greater than $5 million and enterprise values between $50 million and $200 million. Sectors of interest include value-added distribution, specialized light manufacturing, and business and industrial services. Incline was formed in 2011 and is based in Pittsburgh (www.inclineequity.com).
The acquisition of Continental Batteries was made through Incline Equity Partners IV LP which closed in January 2017 with $601 million of total capital commitments. Fund IV closed at its hard cap and above its $450 million target after only three months of marketing.
© 2018 Private Equity Professional | January 12, 2018
