Summit Park has acquired C.A.R.S. Protection Plus, a provider of vehicle service contracts that are sold through a network of just more than 10,000 car dealerships located in 34 states.
C.A.R.S. Protection Plus (CARS) specializes in the high mileage, used car segment of the vehicle service contract (VSC) industry and has grown through both increases in its dealer base and geographic expansion. CARS was founded in 1998 by Mike Tedesco and is headquartered just east of Pittsburgh in Murrysville, PA (www.carsprotectionplus.com).
“We are very excited to partner with the leadership team at CARS and we look forward to working with them to build on the company’s historical success,” said Bob Calton, Managing Partner at Summit Park.
The buy of CARS is Summit Park’s third investment in its second fund, Summit Park II, which the firm closed in May 2015 with $118 million of capital commitments. Limited partners include the fund’s two anchor investors – JPMorgan Asset Management and Private Advisors – as well as Adveq, SCS Financial, and Texas Children’s Hospital.
Summit Park is actively seeking additional platform investments in businesses with $20 million to $100 million of revenue, located in the Mid-South, Mid-Atlantic, and Southeastern regions of the United States. Sectors of interest include business services, outsourced services, light manufacturing, and distribution. Summit Park is headquartered in Charlotte (www.summitparkllc.com).
Stellus Capital Management (www.stelluscapital.com) provided the debt financing for the transaction. Confluence Advisors (www.confluenceadvisorsllc.com), a Pittsburgh-based investment banking firm represented CARS.
© 2016 PEPD • Private Equity’s Leading News Magazine • 1-8-16