Kinderhook Industries has acquired NitroFill, a provider of nitrogen gas tire inflation services, in partnership with the company’s Chief Executive Officer, Jay Lighter.
NitroFill’s flagship product offering is the Tire Protection Plan program which is sold to and through new car dealerships. Filling and maintaining a tire with nitrogen gas instead of compressed air (air is about 78% nitrogen, 21% oxygen, and 1% other gases) protects the tire from the destructive effects, mainly elasticity and strength, that oxygen gas has on rubber and other tire materials. NitroFill’s Tire Protection Plan includes inflation services, tire repair and replacement coverage, roadside assistance and other benefits, as well as customer relationship management services used by dealers to increase customer traffic and tire and service sales. Dealers participating in NitroFill’s programs check and correct customer tire pressures with NitroFill for free during the customer’s membership period. NitroFill is headquartered in Pompano Beach, FL (www.nitrofill.com).
“We are thrilled to have the opportunity to partner with Kinderhook,” said Mr. Lighter. “When we set out to find the right partner to help fulfill our vision for NitroFill, we were focused on identifying a firm that could provide us with the financial and strategic resources we needed to rapidly grow our business. Kinderhook’s extensive experience in the automotive aftermarket coupled with their deep network of operating partners made them the clear choice for NitroFill. We are eager to embark on the next phase of our growth with the Kinderhook team.”
The buy of NitroFill is Kinderhook’s 38th automotive-related transaction and was completed using capital from the firm’s fourth fund, Kinderhook Capital Fund IV, which closed in 2014 with $500 million of committed capital.
“NitroFill has carved out an attractive niche in the tire care industry yet they have only scratched the surface from a market penetration perspective,” said Paul Cifelli, Managing Director at Kinderhook. “The opportunity to invest in expanding the company’s service offerings as well as geographic reach is highly attractive. There were more than 17 million cars sold this year in the United States and every one of them is a candidate for NitroFill’s suite of product offerings and tire care programs.”
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. 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 TCF Capital Funding. Western Reserve Partners advised NitroFill on the transaction.
© 2016 Private Equity Professional | December 21, 2016