Resilience Capital Partners has made an investment in Leader Auto Resources.
Leader Auto Resources (LAR) is a provider of buying group services, products and equipment used by auto dealerships and collision centers. The company currently serves over 2,000 dealerships and 270 collision centers across Canada and the Northeast United States.
The company’s products and services – from administrative supplies and services to capital equipment – includes private-label products, direct products and services, equipment for the buildout or retrofit of new dealerships and collision centers, and training. LAR was founded in 1980 and is headquartered near Montreal in Pointe-Claire, Québec.
With the closing of the transaction, LAR will be rebranded as DealerShop, and will be led by automotive industry veterans Mary Petrovich, as chairman, and Bill Gryzenia, as president and CEO. The majority of inventory purchased through DealerShop will be shipped directly from its planned distribution center and headquarters in the Detroit area; and, in some cases, items will be ordered through DealerShop and drop-shipped directly from the manufacturer.
“DealerShop will operate as a centralized supply chain system for essentially everything a dealership needs to effectively run its business,” said Ms. Petrovich. “With more than 17,000 dealerships nation-wide, we believe there is an incredible opportunity to help dealers and collision centers minimize administrative tasks, optimize time devoted to other core functions and realize true cost savings in almost every area of their franchise.”
“We saw an opportunity to take a longstanding success story in the Canadian market, expand that strategy and employ it on a larger scale in the U.S., where there is a growing need for reliable and efficient car and truck dealership suppliers,” said Mr. Gryzenia. “We will put an intense focus on becoming a strong partner to help dealers focus on the areas of support and service as a strategy to enhance their overall profitability.”
“With our deep understanding and experience in the automotive services and aftermarket segments, this partnership with LAR fits the Resilience Capital portfolio perfectly as a long-term investment aimed at growth and profitability of the company through new and better services to dealer franchises and collision shops,” said Bassem Mansour, co-CEO of Resilience.
Resilience Capital Partners invests from $10 million to $40 million in middle-market companies with $25 million to $250 million in revenues and EBITDA typically under $20 million. Sectors of interest include industrial manufacturing, distribution, business services, aviation & aerospace, minerals & mining, consumer goods, transportation logistics, building products, metals, and capital equipment. The firm was founded in 2001 and is based in Cleveland.
Resilience and DealerShop plan to emphasize growth in the Northeast region and into the Midwest before expanding into other areas of the country.
Boston and Cleveland-based investment bank BellMark Partners was the financial advisor to LAR.
© 2020 Private Equity Professional | April 1, 2020
