auto parts

Highlander Buys Roll-N-Lock

March 1, 2016 by John McNulty

Lund International, a portfolio company of Highlander Partners, has acquired Roll-N-Lock Corporation, a designer and manufacturer of retractable tonneau covers for light trucks.

Roll-N-Lock’s operations will continue to be conducted from Roll-N-Lock’s existing facility in Pompano Beach. The company’s employees will join the Lund International team and will be led by Brandon Bernardo, co-owner and President of Roll-N-Lock (www.rollnlock.com).

“Lund’s broad reach into the major automotive markets, along with its current tonneau and truck accessories offering, will only enhance the operations of Roll-N-Lock and present us with access to significant new outlets for growth,” said Mr. Bernardo.

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. Company owned brand names include Lund, AVS, Belmor, AMP Research, Rampage, Bushwacker, TonnoPro and Stampede. Lund is based northeast of Atlanta in Buford, GA (www.lundinternational.com).

“The addition of Roll-N-Lock is highly strategic and complementary to Lund’s existing tonneau product offerings. The acquisition will enhance Lund’s breadth in the tonneau category, rounding out Lund’s offering with retractable tonneau covers,” said Mitch Fogle, President and CEO of Lund International.

“This acquisition, Lund’s seventh since Highlander acquired the company in 2011 and our second in the tonneau category in less than a year, reconfirms our strategy of executing strategic add-on acquisitions that enhance and expand Lund’s existing business and product offerings,” said Jeff Hull, Chairman of Lund and Managing Partner of Highlander. “We have consistently identified Lund product categories where customers desire a more comprehensive offering of products, and we have focused our acquisitions on broadening those options in the targeted categories. We are continuing to evaluate M&A opportunities and expect to make additional acquisitions going forward.”

Highlander Partners makes investments in middle market businesses in targeted industries where the principals of the firm have significant operating and investing experience. Sectors of specific interest include basic manufacturing, food and beverage, specialty chemicals, building materials, and consumer products. The firm has over $1 billion of assets under management and is based in Dallas (www.highlander-partners.com).

Dubin Clark Sells Driven Performance Brands

September 28, 2015 by John McNulty

After more than ten years of ownership, Dubin Clark has sold its portfolio company Driven Performance Brands to Sentinel Capital Partners.

Driven Performance Brands (DPB), acquired by Dubin Clark in July 2005, is a designer, manufacturer, marketer and distributor of specialty automotive aftermarket performance products. Brand names include B&M Racing and Performance Products, Hurst, Hurst Driveline Conversions, Flowmaster, and Dinan Engineering. The company was founded in 1953 and is headquartered north of San Francisco in Santa Rosa (www.dpbrands.com) (www.bmracing.com).

“We were delighted to enter into a partnership with Brian Appelgate, CEO of DPB, and his team in 2005,” said Tom Caracciolo, Managing Partner of Dubin Clark. “Together with management, we were successful in completing five strategic add-on acquisitions and building a world-class operation. Having exceeded our growth objectives, we felt the time had come to find another partner for DPB, one that would continue to finance the significant future growth of the business.”

Dubin Clark invests in companies that have from $10 million to $100 million in sales and at least $2 million of EBITDA. Sectors of interest include manufacturing, value-added distribution, and services. The firm was founded in 1984 and is based in Greenwich, CT (www.dubinclark.com).

“When we partnered with Dubin Clark we were convinced that we made the right choice for the best private equity partner,” said Brian Appelgate, President and CEO of DPB. “We were right. The team at Dubin Clark delivered everything that they said they would in every respect. They supported all of our growth initiatives as well as add-on acquisition executions. We found the Dubin Clark team to be professional but very caring and engaged. They proved to be a wonderful partner for us.”

Jefferies (www.jefferies.com) was the financial advisor to Driven Performance Brands and Dubin Clark.

Sentinel Capital Sells Vintage Parts to GenNx360

September 21, 2015 by John McNulty

Sentinel Capital Partners has sold its portfolio company Vintage Holdings (DBA Vintage Parts) to GenNx360 Capital Partners.

Vintage Parts supplies slow-moving replacement parts sourced from original equipment manufacturers (OEMs) to OEM-approved dealers and distributors. The company is 100% aftermarket focused and has partnerships with more than 60 OEMs in the automotive, construction, agriculture, and trucking end markets including CNH, Caterpillar, Chrysler, Ford, GM, John Deere, Harley Davidson, Honda, Komatsu, and Mercedes-Benz. The company operates 16 facilities and employs over 100 people. Vintage Parts is headquartered northwest of Milwaukee in Beaver Dam, WI (www.vpartsinc.com).

Sentinel first invested in Vintage Parts in October 2007 through Sentinel Capital Partners III, LP. “Vintage Parts is an industry pioneer that has performed superbly during our eight-year ownership,” said Jim Coady, a partner at Sentinel. “Since we acquired the business, Vintage Parts has added 30 new OEM partners and entered several new end markets. If we could, we would own Vintage Parts forever. It is a great business with an outstanding management team, and the investment has been very rewarding for us.”

Sentinel Capital Partners invests in middle market companies in the United States and Canada in partnership with management. The firm invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs up to $65 million. Sentinel targets eight industry sectors: aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare, and industrials. The firm is headquartered in New York (www.sentinelpartners.com).

“Our long partnership with Sentinel has been very productive,” said Vintage Parts CEO Darrell Armbruster. “We worked alongside Sentinel to continue to refine our business model and, as a result, we have seen significant growth in our revenue and OEM partner base over the last several years. Looking forward, we see many more opportunities to grow.”

Matt Guenther led the transaction for GenNx360 and the buy of Vintage Parts is the fourth platform investment for GenNx360’s Fund II. “We are impressed by the company’s level of service to its partners and their dealer networks. As an industry pioneer, Vintage Parts has been successful in consistently adding new OEM partners to its network. We look forward to partnering with the company’s experienced management team to help them continue to grow while maintaining their high quality of service,” said Mr. Guenther.

GenNx360 is a private equity firm focused on investing in industrial business-to-business companies in the middle market. Sectors of interest include aerospace & defense; automotive; building products; food & agriculture; healthcare; metals & mining; oil & gas and power; packaging, specialty chemicals; and transportation. GenNx360 was founded in 2006 and is headquartered in New York with an additional office in Boston (www.gennx360.com).

Olympus Acquires IXS from Graham

August 22, 2014 by John McNulty

Olympus Partners has acquired Innovative XCessories & Services (IXS), a provider of upfit services and accessories to the automotive aftermarket and original equipment manufacturers, from Graham Partners which first invested in the company in August 2005.

IXS’ aftermarket division, operating under the brand Line-X, provides protective coatings for pick-up truck beds, with 465 franchise locations in the US and Canada and licensees in over 50 countries. Its OEM division, operating as Ground Effects, provides protective coatings for pick-up truck beds as well as a range of other upfit services and exterior accessories to automotive manufacturers through a network of 15 co-located facilities across North America. IXS has offices in Huntsville, AL; Winsor, ON; and Strasburg, OH (www.ixsllc.com).

“IXS combines a strong consumer brand with an unmatched service model built over 30 years of partnership with the auto manufacturers. It is ideally positioned to benefit from the market’s increasing demand for premium options and customization, as well as the exciting growth in pick-up trucks,” said Jason Miller, Principal at Olympus. “We see considerable opportunity to expand the product and service offering and continue to build this platform globally. We look forward to working with CEO Kevin Heronimus, President Jim Scott and the rest of the IXS management team.”

Olympus Partners, with $5 billion of capital under management, provides equity capital for middle market management buyouts and for companies needing capital for expansion. Sectors of interest include consumer products, healthcare, financial services and business services. The firm was founded in 1988 and is based in Stamford, CT (www.olympuspartners.com). The acquisition of IXS is Olympus’ second investment out of its sixth fund. The Olympus team included Jim Conroy, Jason Miller, Robby Polakoff, and Taylor Rhyne.

Graham Partners seeks to acquire companies with EBITDA between $5 million and $50 million, and will invest in smaller companies as add-on acquisitions to existing portfolio companies. The firm is sponsored by the Graham Group, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsourced manufacturing. Graham Partners was founded in 1988 and is headquartered in Philadelphia (www.grahampartners.net).

Harris Williams & Co. acted as the exclusive advisor to IXS. The transaction was jointly led by John Neuner and Corey Benjamin from Harris Williams & Co.’s Consumer Group and Jason Bass, Joe Conner, and James O’Malley from the firm’s Transportation & Logistics (T&L) Group.

Debt financing for the acquisition was led by GE Capital and The Bank of Ireland.

2014 PEPD • Private Equity’s Leading News Magazine • 8-22-14

Bertram Capital Invests in ECS Tuning

August 7, 2014 by John McNulty

Bertram Capital has made an investment in ECS Tuning, a seller of OEM and company branded automotive parts.

ECS Tuning sells Volkswagen, Audi, BMW, Mercedes-Benz, Mini and Porsche automotive parts and the company has a catalog of more 1.3 million SKUs. The company’s product offering includes thousands of high-performance parts and kits sold direct-to-consumer via the company’s e-commerce site. ECS also has a company library consisting of thousands of original how-to guides, videos, images, and product suggestions. Company owned brands include ECS Tuning, Ziza, Alzor, Bremmen, and Schwaben. A third-generation family business, ECS’ shareholders Tom and Brian Demrovsky will continue to work for the company as co-CEO’s. ECS Tuning is headquartered south of Cleveland in Wadsworth, OH (www.ecstuning.com).

“Brian, Tom and their team have built an impressive organization offering consumers a differentiated buying experience through proprietary vehicle kits, in-house R&D efforts, and a rich social media experience,” said Jeff Drazan, Bertram Capital’s Managing Partner. “We are honored that Brian and Tom selected Bertram Capital as their partner to further build ECS Tuning as both a brand and premier online destination.”

Bertram Capital invests in middle-market business services, consumer, healthcare, industrial and technology companies. Bertram is currently investing out of its $500 million second fund and typically allocates $25 million to $100 million to each investment. Since the firm’s inception, Bertram has managed in excess of $850 million in committed capital and has completed 12 platform investments and 15 follow-on acquisitions. The firm is located in San Mateo, CA (www.bertramcapital.com).

“Brian and I have been looking for a financial and strategic partner that shared our vision and enthusiasm for ECS Tuning,” said Tom Demrovsky, co-CEO of ECS Tuning. “The partnership with Bertram Capital will enable us to accelerate our investment in the business so we can more aggressively pursue our mission of becoming the premier one-stop shop for auto enthusiasts.”

ECS Tuning represents Bertram Capital’s third investment in a high growth consumer business and the firm’s twelfth platform investment overall. The investment in ECS Tuning combines the talents of the ECS technology team with Bertram Labs, Bertram Capital’s internal team of software product strategists, software engineers, visual designers, online marketers, and social media experts.

“We are excited to be joining forces with Bertram Capital. We have been approached by a number of firms over the past year, but we were impressed with Bertram’s unique ability to leverage technology, their focus on growth, and their commitment to building the brand responsibly,” said Brian Demrovsky, co-CEO at ECS Tuning.

“The company’s passion is infectious,” said Ryan Craig, Partner at Bertram Capital. “It starts with Tom and Brian and is reflected in every facet of the business, from ECS’s proprietary products to the efficiency of its internal systems. At Bertram Capital, we target e-commerce companies that fuse unique content with proprietary products. ECS Tuning provides the foundation for a broader e-commerce platform focused on aftermarket automotive parts. We intend to expand our presence across a variety of automotive makes and believe the add-on acquisition opportunities in this sector will be numerous. We would also like to acknowledge John Tilson and the Brown Gibbons Lang & Company team for their efforts in bringing this exceptional investment opportunity to our attention.”

2014 PEPD • Private Equity’s Leading News Magazine • 8-7-14

Gladstone Capital Acquires Meridian Rack & Pinion

January 13, 2014 by John McNulty

Gladstone Capital Corporation has invested $5.6 million in a combination of debt and equity to purchase Meridian Rack & Pinion (DBA Buy Auto Parts).

Gladstone Capital, together with Digital Fuel Capital, a private equity firm focused on e-commerce and digital marketing, and Meridian’s existing management team provided the capital in support of the acquisition of the business. Jean-Pierre Gilbertz, the founder of Meridian, will continue to hold a sizeable stake in the company. One of Gladstone Capital’s affiliated companies, Gladstone Investment Corporation, also participated as a co-investor by providing $13 million of debt and equity financing on the same terms as Gladstone Capital.

Meridian Rack & Pinion is a provider of aftermarket and OEM replacement automotive parts, which it sells through both wholesale channels and online at www.BuyAutoParts.com. Meridian distributes a targeted set of product lines, which include replacement turbochargers, air conditioning parts, steering racks, and suspension components. The company was founded in 1989 and is based in San Diego (ww.meridianautoparts.com).

“We believe that the www.BuyAutoParts.com model of product category depth, in-stock inventory and expert live sales support is the winning formula for the on-line auto parts channel, which has significant opportunity for further penetration in the auto parts industry,” said Carson Biederman, President of Digital Fuel Capital. “We look forward to supporting Meridian’s expansion into other product categories and geographies through both organic growth and acquisitions.”

Gladstone is a publicly-traded business development company that makes debt and equity investments in US-based small to middle-market businesses. Target investments generally range from $5 million to $30 million in companies with over $3 million in EBITDA. Sectors of interest include light and specialty manufacturing, industrial products, business and government services, media and communications, consumer products and services, healthcare services, transportation, specialty chemicals and energy services. Gladstone is based in McLean, VA with additional offices in New York, Chicago, and Los Angeles (www.GladstoneInvestment.com).

“Gladstone is excited to partner with Digital Fuel and the talented management team at Meridian. We look forward to continued growth and expansion, building on the success the management team has achieved over the past few years,” said Kyle Largent, Managing Director of Gladstone Investment and Gladstone Capital.

Sun Capital Partners Exits Wabash Technologies

December 19, 2013 by John McNulty

Sun Capital Partners has signed an agreement to sell Wabash Technologies, a supplier of powertrain sensors and actuators, to Sensata Technologies.

Wabash designs and manufactures speed sensors, position sensors and actuators that are used in powertrain management functions. The company’s sensors appear throughout the vehicle and include pedal position sensors and speed sensors, as well as actuators for fuel management. The company services original equipment vehicle, engine and power equipment manufacturers, including major OEM and Tier-I companies in the medium/heavy truck, construction, agricultural, recreational, marine, and industrial markets. Wabash’s customers include Ford, Allison Transmission, Caterpillar, John Deere, Delphi and Magneti Marelli. Wabash was founded in 1946 and employs approximately 960 people. The company is headquartered near Detroit in Troy, MI and has manufacturing facilities in Mexicali, Mexico and Huntington, IN (www.wabashtech.com).

Sun Capital Partners first invested in Wabash in October 2007. Upon acquisition, Sun initiated several improvements to business operations in order to navigate the business through the global financial crisis, which was particularly challenging for the automotive industry. By carefully managing working capital, increasing production efficiencies, SKU rationalization, realizing meaningful platform growth with new and existing automotive OEM customers, and expanding into additional end markets and geographies, the company was able to offset enormous market declines.

“Wabash Technologies’ customer-focused solutions and achievement of significant operational improvements have fueled the company’s continued growth in the global sensor market,” said Marc Leder, Co-CEO at Sun Capital. “We’re pleased with the company’s progress under our ownership, and are confident the company is well-positioned for future success.”

Sun Capital Partners is a private investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in-house operating professionals and experience. Sun Capital has invested in and managed more than 330 companies worldwide with combined sales in excess of $45 billion since the firm’s inception in 1995. The firm has offices in Boca Raton, Los Angeles, and New York as well as affiliates with offices in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen (www.SunCapPart.com).

Sensata Technologies is a supplier of sensing, electrical protection, control and power management products with operations in 11 countries. Sensata’s products are used in automotive, appliance, aircraft, industrial, military, heavy vehicle, heating, air-conditioning and ventilation, data, telecommunications, recreational vehicle and marine applications. The company is headquartered in Attleboro, MA (www.sensata.com).

“This transaction aligns with Sensata’s objective to execute on acquisitions that are close to our core business. Acquisitions such as this will help us achieve our target operating model of double-digit revenue growth during times of core market headwinds,” said Martha Sullivan, Sensata Technologies President and Chief Executive Officer. “Wabash’s position in the magnetic, speed and position sensing market builds on current Sensata capabilities and provides new capabilities in throttle position and transmission range sensing while enabling additional entry points into the important heavy vehicle and off-road market.”

Lincoln International advised Sun Capital Partners on the transaction.

Monomoy Exits Holley Performance Products

October 31, 2013 by John McNulty

Holley Performance Products, an aftermarket marketer and supplier of high-performance auto parts and a portfolio company of Monomoy Capital Partners, has been acquired by Lincolnshire Management.

Holley Performance Products is a marketer and supplier of high-performance automotive fuel systems and exhaust products, including carburetors, electronic fuel injection products, fuel pumps, and exhaust headers. The company markets its products through a portfolio of brands, including: Holley, Hooker, Flowtech, Nitrous Oxide Systems or (“NOS”), Earl’s, and Weiand. Holley is headquartered in Bowling Green, KY and employs approximately 350 people (www.holley.com).

Monomoy Capital Partners makes control investments in middle market businesses with $50 million to $500 million in annual sales. Sectors of interest include manufacturing, distribution, consumer product and foodservice industries. The firm has $700 million in assets under management and is headquartered in New York (www.mcpfunds.com).

Lincolnshire Management invests from $10 million to $100 million in companies with revenues of $50 million to $500 million and operating cash flow of $5 million to $50 million. The firm is industry agnostic but has a specific interest in niche manufacturing, distribution and service businesses. Lincolnshire has $1.7 billion of capital under management and is currently investing from its $835 million private equity fund, Lincolnshire Equity Fund IV. Lincolnshire was founded in 1986 and is headquartered in New York with offices in Atlanta, Chicago and Los Angeles (www.lincolnshiremgmt.com).

BB&T Capital Markets served as the exclusive financial advisor to Holley and Monomoy Capital Partners in this transaction. BB&T Capital Markets provides capital and advisory services including research, sales and trading, equity and debt underwriting, M&A advisory and corporate banking. BB&T is one of the largest financial services holding companies in the US with $182.7 billion in assets and a market capitalization of $23.8 billion, as of June 30, 2013. BB&T is based in Winston-Salem, NC (www.bbtcapitalmarkets.com).

NXT Capital Backs 1-800-Radiator & A/C

August 8, 2013 by John McNulty

NXT Capital has provided $20 million in senior secured financing to recapitalize 1-800-Radiator & A/C. NXT was the Sole Lead Arranger, Sole Bookrunner and Administrative Agent for this transaction.

1-800-Radiator & A/C is a distributor of aftermarket automotive heating and cooling parts. The company recently started offering fuel delivery products and plans to expand into additional part categories in the near future. 1-800-Radiator has over 200 franchised locations serving every major market in the US and Canada. The company was founded in 1982 and is based in Benicia, CA (www.1800radiator.com).

“NXT Capital proved to be an excellent partner for us in this deal. Their automotive and franchise experience made them the ideal partner not only to help us complete the transaction, but also to support our long-term growth initiatives,” said Eric Singer, Executive Vice President, 1-800 Radiator & AC. “We are very happy to have partnered with NXT and view this transaction as the beginning of a long term relationship.”

NXT Capital provides structured financing to middle-market and growth companies through its Corporate Finance, Equipment Finance, Real Estate Finance and Venture Finance groups, originating transactions directly on a national basis. NXT Capital targets senior financing opportunities up to $150 million with a hold size up to $50 million. NXT Capital is led by former principals of Merrill Lynch Capital and was formed in 2010 by Stone Point Capital and the founding management team. The firm is based in Chicago with offices in New York, Atlanta, Boston, Charlotte, Dallas, Phoenix, San Francisco and Silicon Valley (www.nxtcapital.com).

Baird Capital Partners Acquires Thunderbird Sanctuary

July 31, 2013 by

Eckler’s, a portfolio company of Baird Capital Partners, has acquired T-Bird Sanctuary, a provider of classic Thunderbird restoration parts and accessories.

T-Bird Sanctuary (www.tbirdsanctuary.com) was founded in 1966 and is the oldest source for Thunderbird parts in the industry. T-Bird will be combined with the classic Thunderbird parts currently offered by the MAC’s Auto Parts (MACS) division of Eckler’s, which was acquired by the company in November 2012. MAC is the largest supplier of Ford restoration parts and accessories and the newly combined MAC’s Thunderbird business will have the most comprehensive selection of Thunderbird parts in the industry, covering all production years from 1955 through 1979.

“T-Bird is in good hands. Eckler’s resources and capability to stock more parts, invest in more tooling, and offer improved service will be a great asset for our customers,” said Bob Peters, President of T-Bird Sanctuary.

Eckler’s, acquired by Baird in July 2012, is a multi-channel marketer of restoration parts and accessories for classic and enthusiast cars and trucks. Eckler’s products are primarily marketed to consumer enthusiasts and small business classic car restorers. The company is based in Titusville, FL (www.ecklers.com).

“With the acquisition of T-Bird Sanctuary, we can now ensure that Thunderbird enthusiasts have one place to go for the broadest selection and the best on-hand inventory and technical support. We want to make it easy to find and obtain the parts they need so they can focus on enjoying these incredible cars,” said Matt Jordan, Eckler’s CEO.

Baird Capital Partners invests in lower middle-market companies in the manufactured products, healthcare and business services sectors. The firm invests from $15 million to $35 million in companies with enterprise values of $25 million to $125 million and EBITDAs greater than $5 million. Baird Capital Partners was founded in 1989 and is based in Chicago (www.bairdcapitalpartners.com).

Monomoy Acquires Quick Fuel Technology

April 10, 2013 by

High Performance Industries, a portfolio company of Monomoy Capital Partners, has acquired Quick Fuel Technology, a manufacturer of high performance carburetors.

Quick Fuel Technology is a manufacturer of modular carburetors and fuel system components used in the racing, marine and aftermarket products sectors. The company is headquartered in Bowling Green, KY (www.quickfueltechnology.com).

High Performance Industries is a manufacturer of automotive aftermarket products, including carburetors, electronic fuel injection kits, exhaust headers and fuel pumps. The company markets its products through a portfolio of brands, including: Holley, Hooker Headers, Flowtech, Earl’s, and Weiand. The company was founded in 1903 and is headquartered in Bowling Green, KY (www.holley.com).

LBC Credit Partners agented a $60 million senior secured term loan to High Performance Industries, to support the acquisition of Quick Fuel Technology and to fund a dividend recapitalization. LBC was the Agent, Sole Lead Arranger and Sole Bookrunner for this transaction. In June 2012, LBC Credit Partners provided a $37.5 million senior secured term loan and an equity co-investment to support the purchase of High Performance Industries by Monomoy.

LBC Credit Partners is a provider of middle market financing to companies with EBITDAs generally greater than $10 million. Products include senior term, unitranche, second lien, junior secured and mezzanine debt and equity co-investments supporting sponsored and non-sponsored transactions. LBC invests from $10 million to $50 million per transaction supporting acquisitions, growth strategies, refinancings, recapitalizations, and restructurings. LBC has more than $1.25 billion of capital under management and has offices in Philadelphia, Chicago and New York (www.lbccredit.com).

Monomoy Capital Partners has $700 million in assets under management and makes control investments in middle market businesses with revenues between $50 million and $500 million in the manufacturing, distribution, consumer product and foodservice industries. Monomoy is currently investing out of its second fund, Monomoy Capital Partners II, L.P., a $420 million vehicle that closed in January of 2011. Over the past five years, Monomoy has closed over 40 middle market acquisitions, and its companies currently produce over $1.1 billion in combined sales and employ more than 4,500 people. The firm is headquartered in New York (www.mcpfunds.com).

Highlander Partners Acquires Prestige Fender Flares

March 12, 2013 by

Lund International, a portfolio company of Highlander Partners, has acquired Prestige Fender Flares from Empower Group. Prestige is the first add-on acquisition completed by Lund under Highlander’s ownership.

Prestige Fender Flares is a designer and producer of automotive aftermarket fender flares for light trucks and SUVs. The company was founded by Anthony Liu and Robert Chen who will join Lund in a management capacity focusing on new product development. Prestige Fender Flares is based in Allen, TX (www.prestigefenderflares.com).

“This acquisition is validation of Lund’s desire to be a leader across all product categories in the exterior aftermarket automotive accessories market. It also serves as confirmation of our ongoing interest in utilizing an acquisition-based strategy as appropriate to complement our organic growth efforts. We continue to evaluate numerous other potential acquisitions and are always on the lookout for new opportunities,” said Jeff Hull, Chairman of Lund International and Managing Partner of Highlander.

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).

“The addition of Prestige’s fender flares to the Lund family of products solidifies our leadership in the automotive aftermarket accessories industry. We look forward to working with Anthony and Robert to maximize the potential of the excellent product offering they have developed and exploit their combined new product ideas,” said Mitch Fogle, President of Lund.

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 $400 million in capital under management and is based in Dallas (www.highlander-partners.com).

Castle Harlan Exits IDQ

January 9, 2013 by

Castle Harlan has completed the sale of IDQ Acquisition Corp., a manufacturer of do-it-yourself automotive aftermarket air conditioning recharge products, to Kinderhook Industries. The sale resulted in a 3.3X gross multiple on Castle Harlan’s original investment.

“Castle Harlan specializes in partnering with management teams to help them accelerate the growth of their businesses by adding capital and strategic guidance,” said Marcel Fournier, senior managing director of Castle Harlan. “Throughout our investment in IDQ, we helped the company through a number of important strategic and operational initiatives, including building consumer awareness of the category, launching a new product line and expanding the company internationally. As a result, the company is well positioned to continue its ongoing and anticipated growth, and we were able to reward our investors with a very satisfactory return.”

IDQ Holdings is a manufacturer of do-it-yourself automotive aftermarket air conditioning recharge products used for servicing and repairing automotive air conditioners. IDQ products, such as air conditioning recharge and retrofit kits, premium refrigerant blends, specialty chemicals, straight refrigerants, and a wide range of complementary DIY and professional-use items, include brand names such as Arctic Freeze, Sub Zero and Super Seal Stop Leak. These products are sold to consumers through approximately 25,000 retail stores including national chains such as AutoZone, Advance Auto Parts, Wal-Mart, O’Reilly, NAPA, Pep Boys, and others. The company also sells a full range of commercial air conditioning products designed for automotive repair shops. IDQ is based in Garland, TX (www.idqusa.com).

Castle Harlan supported IDQ’s programs to build consumer awareness of the category, increase penetration of the do-it-yourself air conditioning market, and convert consumers from commodity products to higher value-added offerings. Under Castle Harlan’s ownership, IDQ developed, tested and launched the A/C PRO product line and rolled out an advertising and awareness campaign that included nationwide television and radio ads, various social media elements and interactive merchandising displays. These efforts were well received by customers and consumers, and the A/C PRO product line is emerging as a leading brand in the category.

“The Castle Harlan team worked closely with CEO Michael Klein, CFO Gerry Rooney and the entire management team,” said Heather Faust, vice president of Castle Harlan and a member of the IDQ Board of Directors during Castle Harlan’s ownership. “We know these executives well and have great confidence that under their leadership the company will continue to grow.”

Castle Harlan invests in controlling interests in the buyout and development of middle-market companies in North America, Europe and, together with CHAMP Private Equity, in Australia. Since its inception, Castle Harlan has invested in more than 53 companies representing more than $11 billion in enterprise value. Castle Harlan currently manages investment funds with equity commitments of $3.5 billion. The firm was founded in 1987 and is based in New York (www.castleharlan.com).

KPS Capital Partners Acquires Autocast and Forge

November 27, 2012 by John McNulty

Chassis Brakes International Group, a portfolio company of KPS Capital Partners, has acquired substantially all of the assets of Autocast and Forge Pty Ltd.

Autocast and Forge Pty Ltd (ACF) is Australia’s largest independent cast iron foundry serving the automotive industry, primarily engineering and manufacturing specialized castings. ACF’s customers include a majority of Australian automotive manufacturers. The company employs approximately 100 employees at its single facility in Seven Hills, NSW (www.autocast.net.au).

KPS purchased Chassis Brakes International Group (CBI) from The Bosch Group in May 2012 with a strategic plan to grow the business as an independent enterprise. With the acquisition of ACF, CBI has expanded and strengthened its manufacturing capabilities in Australia through vertical integration and has solidified its position as the largest manufacturer of automotive foundation brakes and foundation brake components in Australia.

CBI is one of the world’s three largest manufacturers of automotive foundation brakes and foundation brake components. CBI’s primary products, which include brake calipers, disk brakes, drum brakes and parking brakes, are sold directly to original equipment manufacturers and through various aftermarket channels. CBI is based in Drancy, France and employs approximately 5,900 people at 21 manufacturing facilities and engineering centers in Europe, Asia, South America and Australia (www.chassisbrakes.com).

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $2.6 billion of committed capital focused on investing in restructurings, turnarounds and other special situations. KPS has created new companies to purchase operating assets out of bankruptcy; established stand-alone entities to operate divested assets; and recapitalized highly leveraged public and private companies. The KPS investment strategy targets companies with strong franchises that are experiencing operating and financial problems. KPS portfolio companies, as of September 30, 2012, have aggregate annual revenues of approximately $7.2 billion, operate 89 manufacturing plants in 25 countries, and employ over 30,000 associates, directly and through joint ventures worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).