Superior Capital Partners (SCP) has completed an add-on acquisition for its portfolio company Rostra Precision Controls. Vehicle Safety Manufacturing (VSM), a division of Rostra, has acquired the turn signal switch product line of Grote Industries.
According to SCP, the buy of Grote’s turn signal switch operation positions VSM as the leader of domestically produced turn signal products for the North American heavy duty truck market. The assets and manufacturing lines of Grote’s turn signal switch product line will be relocated from Madison, IN to VSM’s manufacturing facility in Newark, NJ.
Rostra Precision Controls is a manufacturer and distributor of electronic accessories including obstacle sensing systems, cruise controls and comfort systems to the light-vehicle aftermarket. The VSM Division, which was acquired by Rostra in 2014, is a supplier of heavy duty turn signal switches, lighting products and safety components to both OEM and aftermarket customers in the heavy duty and slow moving vehicle marketplaces. Rostra also manufactures electronic transmission components for the automotive aftermarket and for original equipment manufacturers. The company is headquartered in Laurinburg, NC (www.rostra.com).
“The acquisition of the Grote product line represents exactly the type of operationally intensive, value-added bolt-on acquisition that we seek in order to create out-sized returns for our investors,” said Mark Carroll, Superior’s Managing Partner. “We’ve been working with the Rostra management team and Grote’s customers for months in preparation for the move of the production line. When it is successfully transitioned, VSM will have the number one market position and have the lowest cost operation. The acquisition of the Grote product line also brings technology that we intend to commercialize in order to further strengthen the company’s position.”
Superior Capital Partners invests in niche manufacturers, value-added distributors and specialty service companies with annual revenues between $10 million and $150 million. Superior will invest up to $15 million of equity per transaction in management buyouts, corporate spin-offs, recapitalizations, family successions, acquisitions out of bankruptcy and debt purchases. The firm is based in Detroit (www.superiorfund.com).
The acquisition of Grote’s turn signal switch operation is the 20th acquisition completed by Superior’s 2008 inaugural fund.
© 2015 PEPD • Private Equity’s Leading News Magazine • 6-30-15
