auto aftermarket

Bestop Acquires MGP Caliper Covers

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Bestop, a portfolio company of Kinderhook Industries, has acquired Marshall Genuine Products (MGP).

MGP manufactures caliper covers that are used by automotive enthusiasts to keep wheels clean from brake pad dust by redirecting the dust toward the rear of the vehicle. MGP was founded in 2008 by Mike Barland and is headquartered near San Diego in Chula Vista, California.

MGP’s products – available in red, black, or matte black powder-coated finishes – are made from aerospace-grade aluminum and stainless steel using CNC machining, hydraulic forming, and tungsten inert gas (TIG) welding. MGP actively tests its products for stress and heat deformation, and corrosion both on and off-road, and over short and long term periods.

According to Kinderhook, Bestop is the world’s largest manufacturer of soft tops and fabric accessories for Jeep and UTVs (Utility Task Vehicle or Utility Terrain Vehicle). The company has been the sole supplier of factory soft tops on all Jeep Wranglers since 1986 and is a major supplier of tonneaus, lockboxes, lighting and fabric caps to the pickup truck market. Bestop, led by CEO John Larson, was founded in 1954 and is headquartered near Denver in Louisville, Colorado.

“We are excited to add MGP to our growing portfolio of premium brands,” said Mr. Larson. “As a product innovator, Mike has created the category, educated the market and owned the category since day one. Through Mike’s technological expertise, MGP has been able to secure licenses with top automotive brands including Ford, MOPAR, GM, Honda and Acura. Bestop will continue to focus on developing these relationships and creating new partnerships across the automotive industry.”

The buy of MGP is Bestop’s seventh add-on acquisition since being acquired by Kinderhook in August 2015. Prior to MGP, Bestop’s most recent add-on acquisition was the June 2019 buy of Colorado-based Softopper, a designer, manufacturer and distributor of convertible soft tops for light-duty pickup trucks and SUV’s.

“Bestop continues to execute on its acquisition thesis, acquiring top tier brands with strong customer relationships. MGP is known for its high-quality products and easy installation process. We will continue to focus on these principles for MGP and across the Bestop portfolio,” said Tom Tuttle, a managing director of Kinderhook.

New York City-based Kinderhook has over $3.3 billion of committed capital and has closed more than 250 investments and follow-on acquisitions since its founding in 1983. Kinderhook makes control investments in companies with transaction values of $25 million to $150 million in which the firm can achieve financial, operational and growth improvements. Sectors of interest include healthcare services; environmental and business services; and automotive and light manufacturing.

Antares Capital provided the debt financing to support the buy of MGP.

© 2021 Private Equity Professional | May 4, 2021

Clearlake Adds to Wheel Pros

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Wheel Pros, a portfolio company of Clearlake Capital, has acquired Amcor Industries. Clearlake acquired Wheel Pros in March 2018 from Audax.

Amcor Industries (DBA Gorilla Automotive Products) designs, manufactures and sells branded lug nuts, wheel locks, wrenches, and gauges. The company is led by President Peter Schermer and is headquartered in Los Angeles (www.gorilla-auto.com).

Wheel Pros is a designer, marketer, and distributor of branded aftermarket wheels, primarily for light trucks and similar vehicles. Brand names include American Racing, KMC Wheels, XD Wheels, Helo, ATX Wheels, Moto Metal and Motegi Racing. The company also distributes performance tires and accessories. The company distributes more than two dozen brands of high-performance wheels and tires through 30 distribution centers across the United States, Canada, and Australia. Wheel Pros is headquartered near Denver in Greenwood Village, CO (www.wheelpros.com).

“Wheel Pros is a clear market leader in automotive aftermarket wheels, and the acquisition of Gorilla is highly complementary to Wheel Pros’ existing products,” said José Feliciano, Clearlake’s Co-Founder and Managing Partner. “With this acquisition, Wheel Pros adds another iconic brand to its broad portfolio.”

Clearlake Capital invests in companies that are active in the industrials and energy; software and technology-enabled services; and consumer sectors. The firm was co-founded by Mr. Feliciano and Behdad Eghbali in 2006 and is headquartered in Santa Monica, CA (www.clearlakecapital.com).

In March 2018, Clearlake Capital held a final close of Clearlake Capital Partners V LP with over $3.6 billion in commitments. Fund V exceeded its target and was substantially oversubscribed, reaching its hard cap. At over $3.6 billion, Fund V is the largest fund that Clearlake has ever raised.

William Blair was the financial advisor to Wheel Pros on this transaction.

© 2018 Private Equity Professional | June 4, 2018

Hidden Harbor Buys Cloyes Aftermarket

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Hidden Harbor Capital Partners has acquired the aftermarket division of Cloyes Gear & Products, a subsidiary of American Axle & Manufacturing.

Cloyes is a designer, manufacturer and distributor of timing drive systems and components for replacement applications in the automotive aftermarket and high-performance racing segment. The company sells its products under the Cloyes and Dynagear brands to wholesale distributors, national and local retailers, re-packagers, and production engine builders. The company was founded in 1921 and is headquartered in Fort Smith, AR (www.cloyes.com).

“The Cloyes aftermarket team is very pleased to be partnering with Hidden Harbor,” said Mick Jordan, President of Cloyes. “Working in conjunction with the Hidden Harbor team will allow us to achieve our sales growth initiatives, including an expanded product line and new global distribution.  Their operational expertise, standard operating procedures, and process improvement knowledge coupled with Cloyes’ experienced senior management team provide a strong formula for creating future growth.”

Hidden Harbor makes investments in US-based companies with revenues between $50 million and $500 million and EBITDA from $5 million to $25 million. Sectors of interest include industrials, transportation and logistics, business services, and consumer products. The firm is based in Boca Raton (www.hh-cp.com).

“In partnership with Cloyes’ management, we look forward to continuing to provide superior service and products to our existing customers, as well as executing on geographic and product expansion growth opportunities,” said Chris Paldino, a Founding Partner at Hidden Harbor.

“Cloyes, in its nearly 100-year operating history, has established itself as the premier brand in timing systems and related components, recognized for its superior quality products, engineering capabilities, broad product portfolio, and customer service,” said Andrew Joy, a Principal at Hidden Harbor.

Back in 2006, Cloyes was a portfolio company of KPS Capital Partners. It became part of Hephaestus Holdings (HHI), a KPS company formed to consolidate automotive suppliers. In October 2012, HHI was sold to American Securities which merged it with Metaldyne to form Metaldyne Performance Group (MPG). MPG went public in December 2014 and was acquired by American Axle & Manufacturing in April 2017.

American Axle & Manufacturing (NYSE: AXL), the seller of Cloyes, is a Detroit-based manufacturer of automobile driveline and drivetrain components and systems. The company had revenues in 2017 of $6.3 billion and has 90 facilities in 17 countries with more than 25,000 employees (www.aam.com).

LBC Credit Partners provided financing for the buy of Cloyes by Hidden Harbor.

© 2018 Private Equity Professional | May 7, 2018

Kinderhook Adds-On Again to Bestop

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Bestop, a portfolio company of Kinderhook Industries, has acquired Kamm Industries (DBA PRP Seats). The buy of PRP Seats is the fourth add-on acquisition completed by Bestop since being acquired by Kinderhook in August 2015.

PRP Seats is a maker of custom seats, harnesses, storage bags, and accessories for off-road vehicles such as UTVs (Utility Task Vehicle or Utility Terrain Vehicle), Jeeps and trucks. The company is most known as the seat-of-choice for UTV’s such as the Polaris RZR and Can-Am Maverick X3. PRP Seats was founded by its CEO Aaron Wedeking and is headquartered north of San Diego in Temecula, CA (www.prpseats.com).

“Now is the right time to join forces with Bestop as we believe there is a huge opportunity to leverage each other’s strengths,” said Mr. Wedeking. “We wanted to align ourselves with a partner that values the premium performance, quality and innovation that PRP Seats is known for, and Bestop was clearly the right choice for that strategy.”

According to Kinderhook, Bestop is the world’s largest manufacturer of soft tops and fabric accessories for Jeep vehicles. The company has been the sole supplier of factory soft tops on all Jeep Wranglers since 1986. Bestop was founded in 1954 and is headquartered near Denver in Louisville, CO (www.bestop.com).

“We are excited about Bestop adding another premium brand name to its stable of branded products and that PRP Seats has decided to partner with the Bestop and Kinderhook family,” said Tom Tuttle, a Managing Director of Kinderhook Industries. “We look forward to leveraging the Bestop platform to further accelerate PRP’s growth.”

The three other add-ons completed by Kinderhook for Bestop were the August 2016 buy of Cortez, CO-based Tuffy Security Products, a maker of storage products – such as steel consoles, drawers, glove boxes, and trunks – that are used in Jeeps, trucks, SUV’s and other commercial vehicles (www.tuffyproducts.com); the June 2016 buy of San Marcos, CA-based Baja Designs, a provider of off-road lighting products sold to the automotive aftermarket (www.bajadesigns.com); and in 2016 Bestop also acquired Pompano Beach, FL-based Morris Motor Company, an on-line retailer of more than 40,000 automobile parts and accessories to Jeep and 4×4 enthusiasts (www.morris4x4center.com).

“PRP Seats is the premier name in off-road seating and we are thrilled to partner with them,” said John Larson, CEO of Bestop. “The addition of this brand to the Bestop family further positions us as the leading provider of top-of-the-line off-road driving accessories.”

Kinderhook makes control investments in companies with transaction values of $25 million to $150 million in which the firm can achieve financial, operational and growth improvements. The firm makes investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations, and existing small capitalization companies lacking institutional support. Sectors of interest include healthcare services, environmental/business services, and automotive/light manufacturing. Kinderhook was founded in 2003 and is based in New York (www.kinderhook.com).

© 2018 Private Equity Professional | February 1, 2018

Kinderhook Building Race Winning Brands

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Race Winning Brands, a portfolio company of Kinderhook Industries, has completed the add-on acquisitions of sister companies Diamond Pistons and Trend Performance, manufacturers of high-performance engine components.

Diamond Pistons is a manufacturer of high-performance forged automotive pistons that are sold to a variety of customers across the professional racing and enthusiast markets. The company was founded in 1968 and is based near Detroit in Clinton, MI (www.diamondracing.net).

Trend Performance is a manufacturer of high-performance internal engine components including pushrods and wrist pins. The company was founded in 1988 by Bob Fox and is based near Detroit in Warren, MI (www.trendperform.com).

“We are excited that Diamond Pistons and Trend Performance have joined the Race Winning Brands and Kinderhook families and look forward to executing against our long-term strategic objectives together. The acquisition of these brands further strengthens the Race Winning Brands platform as the company continues to expand its portfolio of high-performance products,” said Tom Tuttle, Managing Director of Kinderhook Industries.

These acquisitions represent the first add-ons for Race Winning Brands (RWB) since its formation in February 2017 to facilitate the buy of Performance Motorsports International from publicly-traded Dover Corporation for total consideration of $150 million. As part of that transaction, Dover agreed to have a minority equity ownership interest in RWB.

Performance Motorsports International (PMI) is a manufacturer of performance and racing pistons as well as connecting rods, crankshafts, electronics, and other engine related components. The company sells its products to the automotive and powersports performance markets under several brands including JE Pistons, Wiseco Performance Products, K1 Technologies, Innovate Motorsports, and ProX Racing Parts. Customers include professional and sportsman racers, engine builders, enthusiasts, street performance racers, OEM crate engine builders, and automotive and powersports wholesale distributors. The company is headquartered east of Cleveland in Mentor, OH (www.pmi-brands.com); (www.wiseco.com); (www.jepistons.com); (www.pro-x.com); (www.k1technologies.com); and (www.innovatemotorsports.com).

“Diamond Pistons and Trend Performance have firmly established themselves as trail-blazers in the automotive performance market. We are very excited to welcome Bob Fox and add both businesses to the RWB family while retaining their customer focused strategy that prioritizes speed and innovation. The acquisition of Diamond Pistons and Trend Performance complements RWB’s existing portfolio of brands and accelerates the company’s commitment to deliver race winning products to its customers,” said RWB CEO, Brian Reese.

Kinderhook intends to continue the growth of RWB both organically and through acquisitions in the automotive and powersports performance markets.  RWB continues to invest in brand development and new product innovation, while evaluating opportunities to expand into adjacent and new product categories.

Kinderhook makes control investments in companies with transaction values of $25 million to $150 million in which the firm can achieve financial, operational and growth improvements. The firm makes investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations, and existing small capitalization companies lacking institutional support. Kinderhook was founded in 2003 and is based in New York (www.kinderhook.com).

The buys of the Diamond Pistons and Trend Performance brands represent Kinderhook’s 45th automotive related transaction.

Kirkland & Ellis provided legal services to Race Winning Brands on this transaction.

© 2017 Private Equity Professional | April 7, 2017

Kinderhook Begins New Aftermarket Build

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As part of its latest auto-aftermarket build-up, Kinderhook Industries has formed Race Winning Brands (RWB) and acquired Performance Motorsports International from publicly-traded Dover Corporation for total consideration of $150 million. As part of the transaction, Dover will have a minority ownership stake in RWB.

Performance Motorsports International (PMI) is a manufacturer of performance and racing pistons as well as connecting rods, crankshafts, electronics, and other engine related components. The company sells its products to the automotive and powersports performance markets under several brands including JE Pistons, Wiseco Performance Products, K1 Technologies, Innovate Motorsports, and ProX Racing Parts. Customers include professional and sportsman racers, engine builders, enthusiasts, street performance racers, OEM crate engine builders, and automotive and powersports wholesale distributors. The company is headquartered east of Cleveland in Mentor, OH (www.pmi-brands.com); (www.wiseco.com); (www.jepistons.com); (www.pro-x.com); (www.k1technologies.com); and (www.innovatemotorsports.com).

Brian Reese, a Kinderhook Operating Partner, former Vice President of COMP Performance Group and most recently a Divisional Vice President of Sears Holdings Corporation, will join Race Winning Brands as its Chief Executive Officer. “I have long admired PMI and considered their brands as preeminent leaders in the automotive and powersports performance markets. I am thrilled to have the opportunity to work with Kinderhook and the management team to lead Race Winning Brands in its next phase of growth.” said Mr. Reese.

“A fundamental tenet of Kinderhook’s investment philosophy is identifying unique investment opportunities where our experience, abilities and network of Operating Partners can help create value,” said Paul Cifelli, a Managing Director at Kinderhook. “Race Winning Brands aligns perfectly with this investment philosophy. We are confident that Kinderhook’s proven ‘buy-and-build’ strategy will allow us to expand RWB’s leadership position in the automotive and powersports performance markets.”

The buy of Performance Motorsports International is Kinderhook’s 40th automotive aftermarket acquisition since inception and the third public/private equity partnership completed in the past 24 months.

Kinderhook makes control investments in companies with transaction values of $25 million to $150 million in which the firm can achieve financial, operational and growth improvements. The firm makes investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations, and existing small capitalization companies lacking institutional support. Kinderhook was founded in 2003 and is based in New York (www.kinderhook.com).

Financing for the transaction was provided by a debt syndicate led by Antares Capital, Varagon Capital Partners, Madison Capital, and NewStar Financial. “Antares understands our investment thesis and financing needs given their experience supporting us on prior automotive aftermarket deals,” said Mr. Cifelli. “As in prior transactions, the Antares team was reliable and flexible throughout the process.”

Dover (NYSE:DOV), the seller of PMI, is a diversified global manufacturer with operations in energy, engineered systems, fluids, and refrigeration & food equipment. The company has annual revenue exceeding $7 billion and employs more than 29,000. Dover is headquartered in the Chicago suburb of Downers Grove (www.dovercorporation.com).

© 2017 Private Equity Professional | February 15, 2017

Kinderhook Buys Tuffy

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Bestop, a portfolio company of Kinderhook Industries, has acquired Tuffy Security Products, a maker of storage products – such as steel consoles, drawers, glove boxes, and trunks – that are used in Jeeps, trucks, SUV’s and other commercial vehicles.

“Tuffy has firmly established itself as a trail-blazer in the security products category and complements Bestop’s existing lockbox business and is in line with the company’s commitment to deliver the highest-quality products to its distributors, jobbers, and consumers,” said Bestop CEO, John Larson.

Bestop is a manufacturer of soft tops and fabric accessories for Jeep vehicles and since 1986 has been the sole supplier of factory soft tops on all Jeep Wranglers, a compact and mid-size SUV manufactured by Chrysler. The company was founded in 1954 and is based near Denver in Louisville, CO (www.bestop.com). Tuffy Security Products is headquartered 400 miles southwest of Bestop in Cortez, CO (www.tuffyproducts.com).

Tuffy represents the second add-on acquisition for Bestop. In June 2016 the company acquired San Marcos, CA-based Baja Designs, a provider of off-road lighting products sold to the automotive aftermarket (www.bajadesigns.com).

“Bestop is growing both organically and through acquisitions,” said Mr. Larson. “We continue to invest in brand development, aggressive product innovation, and working with our retail partners to drive the best-possible consumer experience.  Baja Designs and Tuffy are just the first in a series of great brands which we intend to add to the Bestop family”

Kinderhook Industries makes control investments in companies with transaction values of $25 million to $150 million in which the firm can achieve financial, operational and growth improvements.  Kinderhook pursues investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations, and existing small capitalization companies lacking institutional support. The firm was founded in 2003 and is based in New York (www.kinderhook.com).

Paul Cifelli, a Managing Director at Kinderhook, led the acquisition of Tuffy.

© 2016 Private Equity Professional • 8-24-16

Huron Buys Drake Automotive

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Huron Capital Partners has acquired Drake Automotive Group – a designer and distributor of branded automotive aftermarket products – in partnership with its founder and management team.

Drake Automotive Group serves the classic car, off-road, and late model “muscle car” markets. Drake has long been a provider of parts for classic and current model Ford Mustangs and for other vehicles such as Broncos, Jeeps, and Camaros. The company was founded by Scott Drake in 1988 and is headquartered in Henderson, NV (www.drakeautomotivegroup.com).

“We think Drake is a great fit with Huron Capital, given our Detroit roots,” said Brian Demkowicz, Managing Partner of Huron Capital. “We believe Scott and his team have done an excellent job building a premier brand name that caters to a passionate group of vehicle enthusiasts who recognize Drake for innovation and quality.”

According to the 2015 Specialty Equipment Market Association Market Report, the automotive restoration aftermarket parts business is a $1.4 billion industry. “Working with the Drake team, we plan to pursue a buy-and-build strategy in the enthusiast segment of the automotive aftermarket,” added Mr. Demkowicz.

Huron Capital Partners invests up to $70 million per transaction in middle market companies that have revenues up to $200 million and EBITDAs of $5 million or more. Sectors of interest include specialty manufacturing, business services, consumer goods & services, and healthcare.  The firm was founded in 1999 and currently manages over $1.1 billion in equity through four private equity funds. Huron Capital has offices in Detroit and Toronto (www.huroncapital.com).

“Our team has a lot of energy and ideas for growing the business, and we are excited to have a partner in Huron Capital who shares our vision and values,” said Mr. Drake.

© 2016 PEPD • Private Equity’s Leading News Magazine • 1-12-16

Audax Adds-On with Eastern Catalytic Buy

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AP Exhaust Technologies, a portfolio company of Audax Group, has completed the acquisition of Eastern Catalytic, a maker of exhaust and emissions products.

Eastern Catalytic is a supplier of direct fit, universal, and manifold catalytic converters sold to the automotive light duty aftermarket. The company was founded in 1976 by Wilhelm Schafer and is headquartered northeast of Philadelphia in Langhorne, PA and has additional manufacturing facilities in Mexico and Canada.  The Langhorne operations includes a 115,000 sq. ft. manufacturing facility and 102,000 sq. ft. distribution center with a combined total of approximately 125 employees (www.easterncatalytic.com).

AP Exhaust Technologies (AP) is a manufacturers and suppliers of automotive, light truck, and heavy-duty exhaust and emissions products under the AP, CATCO, ANSA, Cherry Bomb, TruckEx, Xlerator, and Silverline brands. The company was founded in 1927 and is based southeast of Raleigh in Goldsboro, NC (www.apexhaust.com).

“This acquisition adds another well-recognized brand into the AP portfolio, combining AP’s full line exhaust offering and expertise with Eastern’s product development capabilities, and it positions us as a leading exhaust and emissions supplier in the North American automotive and heavy duty aftermarket,” said Young Lee, Managing Director of Audax Group.  “We look forward to working with the AP and Eastern teams to continue building the AP platform through organic growth and strategic acquisitions.”

Growth opportunities for Eastern Catalytic include expanding into new markets for catalytic converters including marine, industrial, off-highway, and fractional horsepower applications.

Investment bank Angle Advisors – based in the Detroit suburb of Birmingham (www.angleadvisors.com) – was the financial advisor to advised Eastern Catalytic. With the closing of this transaction, Angle Advisors has completed 27 aftermarket transactions since 2009 and 6 within the aftermarket exhaust and emission components segment.

“Angle Advisors’ experience in the automotive aftermarket and extensive relationships throughout the industry proved to be instrumental in our successful transaction,” said George Schafer, Sr., President of Eastern.

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing.  Audax has over $6 billion in assets under management in its private equity, mezzanine, and senior debt businesses. The firm was founded in 1999 and has offices in Boston, New York, and Menlo Park (www.audaxgroup.com).

GSO Capital (a division of Blackstone – www.blackstone.com) and Madison Capital (www.mcfllc.com) provided financing for the transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-5-15

Riverside Acquires Arrowhead from Pfingsten

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The Riverside Company has purchased Arrowhead Electrical Products, a supplier of aftermarket, non-discretionary parts and components for a wide variety of motorized vehicles, from Pfingsten Partners which acquired the company in October 2011.

Arrowhead Electrical Products (AEP) has approximately 75,000 SKUs including starters, clutches, driveline components, alternators, generators, suspension parts, gasket kits, and other components.  The company serves more than 6,000 customers across a number of different end markets, including powersports, agricultural & industrial, outdoor power equipment, marine, and automotive & heavy duty. AEP has 200 full-time employees and is headquartered north of Minneapolis in Blaine, MN. The company has six distribution centers in the US, one each in Canada and the UK, and sourcing offices in India and China (www.aep.com).

Under Pfingsten ownership, AEP completed an extensive add-on acquisition program to expand its product offering and geographic reach. The add-ons included  Outdoor Power Xtreme Equipment (Boca Raton, FL); Winderosa Manufacturing and Distributing (Peru, ME); Boston Auto Electric (Downsview, ON); Atlantic Quality Parts (Jacksonville, FL); Power Sport Industries (New Berlinville, PA); Superior Distribution Center (Modesto, CA); and Hi-Level Enterprises (Doncaster, UK).

According to Riverside Partner Steve Dyke, AEP will continue to actively seek add-on acquisition opportunities in the automotive aftermarket.  “AEP has thrived under the leadership of CEO Jim Wisnoski and a strong management team due to its customer-centric focus.  The company has consistently expanded its product line through both new product development and acquisitions.  We are excited to partner with the AEP team to build upon their strong track record of growth and deliver even more high quality products.”

The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $300 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 400 transactions. The firm’s international portfolio includes more than 80 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

Working with Mr. Dyke on the transaction for Riverside were Principal Rob Langley, Senior Associate Alex Treece, Associate Phillip Furbay, Operating Partner Steve Stubitz, and Managing Director Brian Bunker. Origination Principal Jim Butterfield sourced the transaction.  Anne Hayes, a Riverside partner, led the financing of the transaction which was provided by Ares Capital (www.arescapitalcorp.com) and Varagon Capital Partners (www.varagon.com).

Pfingsten Partners invests in middle market manufacturing, distribution and business services companies.  Since its founding in 1989, Pfingsten has raised four investment funds with total commitments of approximately $1 billion.  The firm is based in Chicago with additional offices in India and China (www.pfingsten.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-1-15

Linsalata Acquires RANDYS Worldwide Automotive

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Linsalata Capital Partners has acquired a majority interest in RWA Holding Company and its subsidiary Ring & Pinion Service (DBA RANDYS Worldwide Automotive).  RANDYS’ CEO, Kevin Kaestner, co-invested in the transaction alongside Linsalata Capital Partners.

The acquisition of RANDYS is the fourth platform investment for Linsalata Capital Partners Fund VI, LP, a $427 million fund raised in August 2012.

“RANDYS is our latest portfolio company investment in the automotive aftermarket sector having previously invested in Transtar Industries, Lund International and Highland Group Industries,” said Michael Faremouth, Managing Director at Linsalata Capital Partners and a leader of the firm’s automotive aftermarket practice. “RANDYS’ strong brands and value proposition have it well positioned to capitalize on the long term growth dynamics in the industry”.

RANDYS is a provider of engineered components such as differentials, ring & pinion and axle products that are used to improve the towing and traction performance of a vehicle.  The company sells over 6,000 SKU’s under the Yukon and USA Standard brands to a customer base of 20,000 installers, distributors and retailers serving the repair, off-road and performance segments. RANDYS was founded by Randal Lyman in 1982 and is headquartered in Everett, WA (www.ringpinion.com).

“RANDYS is an exciting company with strong brands, multiple organic growth initiatives and add-on acquisition candidates and we are anxious to work with Kevin Kaestner and the team to realize these opportunities,” said James Guddy, Vice President at Linsalata Capital Partners.

Linsalata Capital Partners invests from $10 million to $50 million of equity in middle market companies that have $7 million to $50 million of EBITDA and at least $300 million in enterprise value.  The firm was founded in 1984 and is based near Cleveland in Mayfield Heights, OH (www.linsalatacapital.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-14-15

Highlander Partners Acquires Bushwacker

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Lund International, a portfolio company of Highlander Partners, has acquired Bushwacker, a maker of protective vehicle accessories.

Bushwacker is a designer, manufacturer, marketer, and distributor of branded aesthetic and protective vehicle accessories that are sold through both aftermarket and original equipment channels. The company’s products include a variety of fender flares, bedrail and tailgate caps, vehicle cladding, bumper protectors, wind deflectors, and hood protectors marketed under both the Bushwacker and Stampede brand names. Bushwacker was founded in 1967 and is headquartered in Portland, OR (www.bushwacker.com).

“With the addition of Bushwacker, Lund will enhance its standing as the broadest product line manufacturer of aftermarket automotive accessories and continue to enhance its offerings in each category,” said Mitch Fogle, President and CEO of Lund.

The operations of Bushwacker will continue to be conducted from its existing facilities and will be led by Bushwacker’s President and CEO Russ Morgan, who will join the Lund International team.

“This acquisition, Lund’s fifth since Highlander acquired the company in 2011, is the largest addition to date and significantly strengthens Lund’s geographic presence and unmatched depth of product offering in the automotive aftermarket accessories market,” said Jeff Hull, Chairman of Lund and Managing Partner of Highlander.  “We are excited to continue leveraging the strength of our brand and distribution capabilities to ensure Bushwacker’s products reach the broadest audience possible. Additionally, Bushwacker will also significantly add to our Jeep offering, which was recently enhanced with our acquisition of Rampage Products in December 2014.”

Lund International is a designer, manufacturer and marketer of branded automotive aftermarket accessories for passenger cars, light trucks, and heavy trucks. Its products include vent visors, hood shields, floor mats, tonneau covers, storage boxes, and running boards, among others. The company is based in Buford, GA (www.lundinternational.com).

Highlander Partners makes investments in middle market businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Sectors of interest include healthcare, basic manufacturing, food, and building materials. The firm has over $500 million in capital under management and is based in Dallas (www.highlander-partners.com).

Regions Business Capital, as Administrative Agent, along with a syndicate of participating lenders, provided senior financing and AEA Mezzanine Fund III LP provided mezzanine debt in support of the transaction.

Deloitte Corporate Finance (www.investmentbanking.deloitte.com) served as the exclusive financial advisor to Bushwacker. Deloitte previously served as buy-side advisor to Bushwacker during its 2012 acquisition of Stampede Products.

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-28-15

Wellspring Acquires Qualitor

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Wellspring Capital Management has acquired Qualitor, a supplier of branded aftermarket safety and wear products for the automotive aftermarket, from HCI Equity Partners.

“We are delighted to invest in Qualitor, which has built a strong platform for future growth under its recession-resistant and highly efficient, asset-light business model. We intend to work closely with management in order to drive further improvements in marketing, product development and distribution, and our team at Wellspring is eager to press forward,” said William Dawson, Jr., Chief Executive Officer of Wellspring.

Qualitor is a supplier of aftermarket safety and wear parts including wiper blades and auto care accessories (under the Pylon brand) and brake hardware and related components (under the International Brake Industries brand).  Qualitor’s products are functioning components that are critical to safe vehicle operation. Due to their design and purpose, Qualitor’s products also wear out regularly.  According to market research firm IMR (www.automotiveresearch.com), out of 96 various types of repair and maintenance jobs, Qualitor’s products were among top ten most-replaced components in 2012.  Qualitor operates six North American locations and is headquartered in the Detroit suburb of Southfield, MI (www.qualitorinc.com).

“We were attracted to Qualitor for its unique market position and compelling growth opportunities in the $240 billion US automotive aftermarket. The company and management team have a proven track record of performance under a variety of macroeconomic conditions, and will pursue a variety of new initiatives to further enhance the value of Qualitor and its market opportunities,” said John Morningstar, a Managing Partner of Wellspring.

Wellspring Capital Management is a middle-market private equity firm that manages more than $3 billion of private equity capital. The firm was founded in 1995 and is based in New York (www.wellspringcapital.com).

HCI Equity Partners, which acquired Qualitor in December 2004, invests in industrial products and service companies that have from $20 million to $200 million in annual revenue. Sectors of interest include aerospace & defense; automotive aftermarket; distribution; energy services; federal services; infrastructure products & services; niche manufacturing; power generation components; test & measurement; and transportation & logistics. HCI Equity has offices in Washington, DC; Chicago and Minneapolis (www.hciequity.com).

Alvarez and Marsal Transaction Advisory Group (www.alvarezandmarsal.com) provided finance, accounting and tax advice, and Equity Risk Partners (www.equityrisk.com) advised on insurance and employee benefits. Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel to Wellspring.

2014 PEPD • Private Equity’s Leading News Magazine • 11-3-14

Platinum Equity Sells Wheel Pros to Audax

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Platinum Equity has sold its portfolio company Wheel Pros, a designer and distributor of wheels and tires, to Audax Private Equity.

Wheel Pros is a designer, marketer, and distributor of branded aftermarket wheels, primarily for light trucks and similar vehicles. The company also distributes performance tires and accessories. The company is headquartered in Denver (www.wheelpros.com).

Platinum Equity’s investment in Wheel Pros began with the acquisition of American Racing in 2005. Following a series of add-on acquisitions in 2005 and 2006, Platinum Equity acquired Wheel Pros in 2008 and combined it with American Racing.

“Wheel Pros is a stable and successful business that has evolved into a market leader during our ownership,” said Renee Koontz, principal at Platinum Equity. “The company is well positioned for continued success.”

Platinum Equity invests in a range of industries including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Platinum Equity has completed nearly 150 acquisitions with more than $27.5 billion in annual revenue at the time of acquisition. The firm was founded in 1995 and is based in Beverly Hills with additional offices in New York and London (www.platinumequity.com).

“Wheel Pros is a market leader in the automotive aftermarket industry. We look forward to partnering with Randy White, Jody Groce and the Wheel Pros team to grow the business organically and through strategic add-on acquisitions,” said Geoffrey Rehnert, Co-CEO of Audax Group.

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing.  Audax has over $6 billion in assets under management in its private equity, mezzanine, and senior debt businesses. The firm was founded in 1999 and has offices in Boston and New York (www.audaxgroup.com).

“We are excited to continue growing the business organically and by leveraging Audax’ expertise in identifying and integrating add-ons.  I look forward to working with our new partner and creating a larger strategic enterprise,” said Randy White, CEO of Wheel Pros.

William Blair & Co. advised Wheel Pros.  CIT and GE Capital provided senior debt financing and AEA, Prospect, and Triangle Capital provided junior debt financing.

2014 PEPD • Private Equity’s Leading News Magazine • 7-10-14

Kinderhook Acquires Applied Products

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Tectum Holdings, a portfolio company of Kinderhook Industries, has acquired Applied Products, a manufacturer of retractable truck bed covers. The acquisition of Retrax represents the sixth add-on acquisition by Kinderhook on the Tectum Holdings (THI) platform.

Applied Products (DBA Retrax) is a manufacturer of retractable, low-profile truck bed covers featuring polycarbonate or aluminum covers, which retract on ball-bearing rollers into a storage canister and can be locked in any position. The company was founded in 1996 and is based in Grand Forks, ND (www.retrax.com).

“Retrax provides THI with a footprint in the retractable tonneau market,” said Paul Cifelli, Managing Director at Kinderhook. “Retrax’s explosive growth, brand recognition, innovative design and unmatched quality in the retractable cover market are a perfect complement and expansion of THI’s comprehensive line-up of tonneau covers. Further, THI’s national distribution network will accelerate Retrax’s growth initiatives as well as enhance Retrax’s brand awareness.”

Tectum Holdings is the holding company for Extang (www.extang.com), TruXedo (www.truxedo.com), UnderCover (www.undercoverinfo.com) and Advantage Truck Accessories (www.advantagetruckaccessories.com) – all manufacturers of tonneau covers for light duty trucks, and BedRug (www.bedrug.com) – a manufacturer of bed liners for light duty trucks. The company is headquartered in Ann Arbor, MI.

“THI’s acquisition of Retrax is another important step in THI’s long-term growth strategy. Kinderhook and THI have employed an aggressive organic and acquisition led growth strategy and the acquisition of Retrax represents the sixth acquisition on the THI platform. The acquisition of Retrax positions both businesses for continued growth and success,” said Tom Tuttle, Managing Director at Kinderhook.

Kinderhook Industries makes control investments in companies with transaction values of $25 million to $75 million in which the firm can achieve financial, operational and growth improvements. The firm pursues private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations and existing small capitalization companies lacking institutional support. The firm, founded in 2003, has $770 million of committed capital and is based in New York (www.kinderhook.com).

Financing for the transaction was provided by Madison Capital Funding. Kirkland & Ellis served as legal counsel to Kinderhook and THI. Capstone Financial Group served as an M&A advisor to THI.

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-15-13

Highlander Partners Acquires AMP Research

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Lund International, a portfolio company of Highlander Partners, has acquired all of the operating assets of AMP Research.

AMP Research is a provider of automatic power articulating running boards, bed steps, bed extenders and related products. The company’s products are designed to improve the function and utility of cars, light trucks and SUVs. Brand names include POWERSTEP, BEDSTEP, BEDSTEP2 and BEDXTENDER HD. AMP was founded in 1980 and is based in Tustin, CA (www.amp-research.com).

“This acquisition, Lund’s third so far in 2013, confirms our strategy to seek strategic opportunities that build on and expand Lund’s existing business and product offering. AMP is clearly one of the leaders in innovation and development, and its product line is highly complementary to Lund’s other automotive accessory offerings,” said Jeff Hull, Chairman of Lund and Managing Partner of Highlander. “As with our previous acquisitions, we plan to leverage the strength of our brand and distribution capabilities to ensure AMP’s products reach a broader audience than was previously accessible to them. We continue to evaluate numerous other opportunities and expect to make additional acquisitions going forward.”

Lund International is a designer, manufacturer and marketer of branded automotive aftermarket accessories for passenger cars, light trucks, and heavy trucks. Its products include vent visors, hood shields, floor mats, tonneau covers, storage boxes, and running boards, among others. The company is based in Buford, GA (www.lundinternational.com).

Regions Business Capital, along with a syndicate of participating lenders, provided senior financing for this transaction.

Highlander Partners makes investments in middle market businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Sectors of interest include healthcare, basic manufacturing, food, and building materials. The firm has over $500 million in capital under management and is based in Dallas (www.highlander-partners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-7-13