Kinderhook Industries has acquired SCA Performance in partnership with the founding McSweeney family.
SCA Performance is a provider of vehicle upgrades for specialty light-duty trucks. The company’s upgrades include wheels, tires, bumpers, lighting, suspensions, fenders, badging, side steps, running boards, and exhaust systems. SCA Performance receives new vehicles directly from original equipment manufacturers (OEMs) including Chevrolet, Ford, GMC, Jeep, and Dodge, adds its specialty packages and then sells the up-fitted vehicles to new truck dealers with a full OEM warranty.
Since its founding in 1979, SCA Performance has produced over 150,000 custom vehicles. The company, led by President Matt McSweeney, is headquartered northeast of Birmingham in Trussville, AL (www.scaperformance.com).
“We are very excited to be partnering with the McSweeney family to build on SCA’s tremendous reputation as the premier name for up-fitting light-duty trucks,” said Tom Tuttle, Managing Director at Kinderhook. “The combination of the company’s reputation for quality truck up-fits coupled with Kinderhook’s extensive experience and relationships in the truck aftermarket uniquely position this partnership for success.”
“We have enjoyed building a relationship with Kinderhook throughout this process and are confident this partnership will position SCA to achieve the next phase of its strategic plan,” said Mr. McSweeney. “We are excited to see what our new partnership and Kinderhook’s extensive relationships in the automotive industry can do for SCA as we continue investing in brand development and product innovation to accelerate growth.”
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/business services, and automotive/light manufacturing. Kinderhook was founded in 2003 and is based in New York (www.kinderhook.com).
“SCA has become a leading specialty vehicle manufacturer and a key partner for the leading light-duty truck OEM’s,” said Paul Cifelli, Managing Director at Kinderhook. “The acquisition of SCA perfectly aligns with Kinderhook’s investment strategy of partnering with world-class management teams to acquire companies who are leaders in their respective niches.”
With the transaction now closed, Kinderhook will be adding J. Pearson and John Larson, both Kinderhook Operating Partners, to the board of directors of SCA Performance. Mr. Pearson successfully built Kinderhook Fund I portfolio company, Carry-On Trailer, into the largest trailer manufacturer in the US. He will become the Executive Chairman of SCA Performance. Mr. Larson is currently the CEO of Kinderhook Fund IV portfolio company, Bestop, the world’s largest manufacturer of soft tops and fabric accessories for Jeep vehicles.
The buy of SCA Performance is Kinderhook’s 52nd automotive-related transaction.
© 2018 Private Equity Professional | April 17, 2018