Soundcore Capital Partners has completed three add-on acquisitions for its portfolio company Alloy Wheel Repair Specialists just two months after purchasing the company.
The three add-on acquisitions are comprised of current Alloy franchisees in Atlanta, Baltimore, and Indianapolis. In aggregate, these franchises represent a net addition of $9 million in annual sales.
Alloy Wheel Repair Specialists (Alloy) provides on-site repair of cosmetic damage to alloy wheel cores, off-site remanufacturing of structurally damaged wheels, and OEM replacement parts through the company’s retail network. Alloy and its franchisees currently operate in 47 US states and 15 countries, servicing more than 8,000 auto dealerships, collision shops, tire store accounts, rental car agencies, auctions and automotive centers, and retail consumers. Alloy was founded in 2001 and is headquartered in Norcross, GA (www.awrswheelrepair.com).
According to Soundcore, wheel repair is among the fastest-growing sub-sectors within the auto-reconditioning market, accounting for more than $750 million in annual revenues in the US alone.
“We were pleased to begin executing on our original investment thesis of completing accretive add-on acquisitions quickly, at attractive valuations, by closing on three companies in December,” said Jarrett Turner, Managing Partner of Soundcore. “We anticipate acquiring a significant number of additional franchises in the first quarter, and throughout 2016, as we continue consolidating this sector by acquiring healthy, cash generating businesses.”
Soundcore Capital Partners invests from $4 million to $30 million of control equity in lower middle market companies that are headquartered in the US or Canada. Typical targets will have from $3 million to $15 million in EBITDA. Sectors of interest include automotive, building products, business services, chemicals, consumer products, distribution, energy services & products, food & beverage, general manufacturing, healthcare services, industrial machinery & services, packaging, plastics, and transportation. Soundcore was founded in 2015 and is based in New York (www.soundcorecap.com).
© 2016 PEPD • Private Equity’s Leading News Magazine • 1-8-16