Genstar Capital has acquired a majority equity interest in OEConnection, a provider of technology services to OEM distribution networks, from Providence Equity Partners. Ford Motor Company and General Motors will each retain their minority investments in the company.
OEConnection (OEC) was founded in 2000 as a partnership between several original equipment manufacturers (OEMs), including Ford and General Motors, to provide technology services to facilitate the sale of original equipment replacement parts between automakers and franchised dealers and their wholesale customers.
Since its founding, the company has expanded its suite of technology services which now includes ecommerce, pricing, supply chain, business intelligence, parts cataloging, and data management. OEC serves more than 30,000 auto dealers globally, 36 global OEM brands and more than 135,000 global auto repairers. OEC is led by CEO Chuck Rotuno and is headquartered near Cleveland in Richfield, OH. The company has five additional facilities in the UK (2), Germany, Poland, and India (www.oeconnection.com).
“We are thrilled to join forces with Genstar as we continue to work to expand the OEC footprint and our product and service offerings for customers across the globe,” said Mr. Rotuno. “Genstar has an impressive track record of partnering with companies in the software sector to accelerate growth and transformational change.”
Genstar invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million. The firm targets investments in the financial services, software, industrial technology, and healthcare industries. In February 2019, Genstar held a final closing of Genstar Capital Partners IX LP with $5.9 billion in capital commitments. The firm was founded in 1988 and is headquartered in San Francisco (www.gencap.com).
Providence acquired its equity interest in OEC in June 2016. “It has been a privilege to work with Chuck and the OEC team, as well as our partners at Ford and GM, to help accelerate the growth of the company,” said Davis Noell, a managing director at Providence. “Through significant organic and inorganic initiatives, OEC has achieved tremendous success over the past three years, expanding into new international markets, enhancing its product offerings and data capabilities and significantly bolstering its salesforce to better serve its growing customer base. We have the utmost confidence that the company will continue its successful growth trajectory under Genstar’s stewardship.”
Providence invests in the media, entertainment, communications and information industries and has approximately $54 billion of capital under management. The firm was founded in 1989 and is based in Providence, RI with additional offices in New York and London (www.provequity.com).
UBS was the financial adviser to OEC and its shareholders, including Providence.
© 2019 Private Equity Professional | October 1, 2019