automotive aftermarket parts

Kohlberg to Acquire Parts Authority

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Kohlberg & Company has agreed to acquire a majority interest in Parts Authority, a distributor of automotive aftermarket parts, from The Jordan Company.

Parts Authority (PA) is a distributor of nearly 500,000 SKUs of automotive and truck parts, tools and equipment, and transmissions to the automotive aftermarket industry. PA’s customers include independent installers, national fleets, jobbers, and e-tailers.

PA has grown through both organic initiatives and acquisitions and in the past twelve years has acquired over a dozen companies. Today, the company has over 200 locations across the Northeast, Mid-Atlantic, Ohio, Georgia, Florida, Texas, Arizona, California, Utah, and the Pacific Northwest. PA was founded in 1972 and is headquartered on Long Island in Lake Success, New York.

The Jordan Company (TJC) will retain an equity position in the company and the PA management team, led by CEO Randy Buller, will continue to lead the company and remain as shareholders.

“TJC has been an excellent partner to Parts Authority over the past several years as we have continued to expand our footprint in the U.S. through new greenfield locations and acquisitions,” said Mr. Buller. “The entire Parts Authority staff is excited to partner with Kohlberg for this next phase as we look to continue expanding our business across the nation.”

“We are delighted to partner with Randy and the Parts Authority team,” said Evan Wildstein, a partner at Kohlberg. “The company has clearly established itself as a leading national distributor within the automotive aftermarket. We believe the company is well-positioned to continue on an accelerated growth trajectory through a highly successful organic and acquisition-driven strategy.”

Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on companies with EBITDA between $20 million and $100 million where it can invest between $50 million and $200 million of equity. In March 2018, Blackstone acquired a minority equity interest in the firm. Kohlberg & Company was founded in 1987 and is based north of New York City in Mt. Kisco, New York.

“Randy and the rest of the Parts Authority team have done a phenomenal job of turning the company into the distributor-of-choice in the automotive aftermarket parts industry,” said Ian Arons, a partner of TJC. “We are excited to continue investing alongside the Parts Authority team and look forward to working with the company and Kohlberg in this next stage of growth.”

The Jordan Company is a middle-market private equity firm that invests in a range of industries including industrials, transportation and logistics, healthcare, consumer, telecom, technology, and utilities. The firm was founded in 1982 and is headquartered in New York City with an additional office in Chicago.

Harris Williams was the financial advisor to Parts Authority while Stifel was the lead financial advisor to Kohlberg.

Private Equity Professional | October 6, 2020

Race Winning Brands Adds-On Again

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Race Winning Brands, a portfolio company of Kinderhook Industries, has acquired Manley Performance Products, a maker of pistons, connecting rods, crankshafts, and valvetrain components sold to the automotive aftermarket.

Manley Performance Products was founded by Hank Manley in 1966 and today is led by President Trip Manley, the son of the founder.

“We are excited to join the Race Winning Brands team and partner with a group that leads the racing industry in technology, manufacturing, and innovation,” said Trip Manley. “Our mission remains the same; to manufacture the finest quality internal engine components at competitive prices and offer unparalleled customer service.”

Race Winning Brands (RWB) is a manufacturer of pistons, engine blocks, cylinder heads, intake manifolds, connecting rods, crankshafts, clutches and other engine and driveline-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, Diamond Pistons, Trend Performance, Rekluse Motor Sports, MGP Connecting Rods, ProX Racing Parts, and Dart Machinery.

“Manley is a natural fit within our organization and this partnership is a tremendous opportunity to further grow our performance product lines,” said Bob Bruegging, president of RWB.

RWB’s 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, Ohio with sales and manufacturing operations throughout the United States, Canada, Europe and Asia.

“Manley represents a premium automotive brand with high-performance products that fit well within the product categories RWB currently offers. We look forward to the future success of Manley and Race Winning Brands,” said Tom Tuttle, managing director of Kinderhook. The acquisition of Manley by RWB is Kinderhook’s 83rd automotive-related acquisition.

New York City-based 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 and business services; and automotive and light manufacturing.

In January, Kinderhook held a final closing of its sixth fund, Kinderhook Capital Fund VI LP (along with a parallel fund, together “Fund VI”), at its hard cap with $1 billion of limited partner commitments. Fund VI was oversubscribed and is the largest fund ever raised by Kinderhook. Also last month, Kinderhook sold Stratus Video, a Florida-based provider of video, over-the-phone, and in-person interpretation services used in the healthcare industry, to publicly traded AMN Healthcare Services for $475 million, a purchase price equal to 14x adjusted EBITDA.

© 2020 Private Equity Professional | February 26, 2020

CCMP’s Truck Hero Buys Lund from Highlander

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Truck Hero, a portfolio company of CCMP Capital Advisors, has acquired Lund International from Highlander Partners, who will remain as a minority investor. CCMP acquired Truck Hero in April 2017 from TA Associates which remains as a minority investor in the company as well. The buy of Lund is Truck Hero’s fifteenth acquisition since its formation in November 2007 by Kinderhook Industries.

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, fender flares, nerf bars and running boards.

Company-owned brand names include Lund, AVS, Belmor, AMP Research, Rampage, Bushwacker, Roll-N-Lock, TonnoPro and Stampede. Lund is led by CEO Mitch Fogle and is based northeast of Atlanta in Buford, GA (www.lundinternational.com).

Truck Hero is a designer and manufacturer of branded aftermarket accessories for pickup trucks. The company’s main products are hard and soft truck bed covers that are available in a variety of materials such as vinyl, plastic and metal, and numerous styles, including retractable, folding, roll-up and snap-on units. Truck Hero’s products also include bedliners, bumpers, steps, floorliners and a variety of other pickup truck accessories. Company-owned brand names include Extang, TruXedo, BedRug, UnderCover, Advantage, Retrax, BAK, A.R.E., N-FAB, Husky Liners, and Rugged Liner. Truck Hero is led by CEO Bill Reminder and is headquartered in Ann Arbor, MI (www.truck-hero.com).

“The highly talented Lund and Highlander teams have built a very attractive, profitable and scalable portfolio of functional automotive accessories brands,” said Joe Scharfenberger, a managing director at CCMP Capital.  “We and our partners at Truck Hero welcome them into the Truck Hero family and look forward to realizing the many benefits this combination will bring to our collective customers, employees and shareholders.”

The buy of Lund by Truck Hero adds a complementary product portfolio that further diversifies the Truck Hero’s product category mix and increases exposure to a larger market of vehicles. “This is an opportune time to bring Truck Hero and Lund together,” said Mr. Reminder. “Mitch Fogle and the entire Lund team have built an impressive collection of great companies which will be a perfect match to Truck Hero.  We look forward to working with Mitch and his team to leverage our combined capabilities to further build the company’s position as the foremost source for automotive aftermarket accessories.”

“We decided that the combining of Lund into Truck Hero was an outstanding opportunity to further enhance an already successful investment,” said Jeff Hull, president and CEO of Highlander Partners. “We will be a significant shareholder in the combined company and look forward to continuing our partnership with the Lund management and working alongside Bill and his team at Truck Hero, as well as CCMP, to continue to grow these businesses.”

Highlander 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 manufacturing, consumer products, industrial goods, automotive accessories, packaging, food and beverage, and specialty chemicals. The firm has over $2 billion in assets under management and is based in Dallas (www.highlander-partners.com).

CCMP makes buyout and growth equity investments of $100 million to $500 million in North America and European companies that have enterprise values of $250 million to $2 billion. Sectors of interest include consumer, industrial and healthcare. CCMP is headquartered in New York with an additional office in Houston (www.ccmpcapital.com).

Jefferies (www.jefferies.com) provided debt financing to support this transaction and was the financial advisor to Truck Hero.

Ropes & Gray (www.ropesgray.com) provided legal services to Truck Hero and CCMP on this transaction. Katten Muchin Rosenman (www.kattenlaw.com) was the legal advisor to Lund and Highlander.

© 2019 Private Equity Professional | May 13, 2019

River Associates Acquires GAHH

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River Associates has formed TopDown, Inc. to acquire GAHH Automotive, a maker of automotive aftermarket parts and accessories, from Argenta Partners.

GAHH is a designer, manufacturer, and marketer of aftermarket convertible tops, Jeep tops, and other vehicle interiors including seats, carpeting, and door panels. The company’s portfolio of brands includes GAHH, Robbins, and E-Z ON. GAHH’s parts are designed for use on Mercedes, Porsche, Jaguar, BMW, Rolls Royce, Lexus and a range of other automotive brands. The company, led by CEO Rodney Wells, was founded in 1979 is headquartered in North Hollywood, CA (www.gahh.com).

Canvas Soft Top for Jeep Wrangler JK

Under Argenta ownership, GAHH completed two add-on acquisitions. In August 2014 it acquired EZ ON Auto Tops and in January 2011 it acquired Robbins Auto Top.

Argenta Partners makes control investments in lower middle-market companies that have revenues between $10 million and $125 million and EBITDA of at least $2 million. Sectors of interest include manufacturing, services, transportation and value-added distribution. Argenta is headquartered in Dallas (www.argentalp.com).

River Associates , the buyer of GAHH, invests in US and Canadian-based companies with revenues of $20 million to $100 million and EBITDA of $3 million to $12 million.  Sectors of interest include niche manufacturing, high margin distribution, industrial services, and business services. The firm is investing out of its seventh fund which closed in June 2017 with commitments of $285 million. River Associates was founded in 1989 and is based in Chattanooga, TN (www.riverassociatesllc.com).

“GAHH is an impressive company comprised of several high-quality brands that provide comprehensive offerings to the automotive aftermarket,” said Mike Brookshire, Co-Managing Partner at River Associates. “We were drawn both to their current leadership position in the market as well as their unique position for growth. River is excited to step into a partnership role with Rodney Wells and his management team to pursue that growth, and we believe it will be a very successful chapter for everyone involved.”

Financing for this acquisition was provided by Abacus Finance and Eagle Private Capital. Minneapolis-based Prestwick Partners (www.prestwickpartners.net) was the financial advisor to GAHH and Argenta Partners on this transaction.

© 2018 Private Equity Professional | May 14, 2018