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18 Dec 2024
Sticky Post By Posted in News Permalink

Fleet Services Joins the CTTP Family of Companies

Sticky Post By On December 18, 2024

SANTA CLARA, CA – December 18, 2024 – Hart Marx Advisors has announced that it has facilitated a partnership between Commercial Truck and Trailer Parts (CTTP), a national distributor of aftermarket parts for the U.S. heavy-duty truck industries, and Fleet Services, a leading regional distributor of heavy-duty parts and service provider, to expand the CTTP Family of Companies and provide a physical footprint in the Southern California region.

Founded in 1966, Fleet Services has over 60 years of outstanding customer service and offers a broad selection of aftermarket products across more than 400 brands from four separate locations in Anaheim, San Bernardino, San Diego and Ventura. Fleet Services Inc. will continue to serve as one of the premier aftermarket distributors in Southern California through its continued dedication to service in conjunction with additional sourcing capabilities and intermodal expertise that CTTP provides. Fleet Services will now offer the full line of Road Warrior Parts, intermodal chassis and container parts along with their current product offering enabling access to high-quality products at a competitive price point.

“We are thrilled about the partnership with Fleet Services, by expanding our physical footprint we can continue to expand our customer base by providing faster local deliveries and enhanced service to the Southern California market thanks to the phenomenal track record and knowledge that the Fleet Services team has built over the last 60 years,” said Jason Reeher, President and CEO of CTTP.

“Selecting a partner that would steward the Fleet Services brand by maintaining our exceptional focus on quality while also providing the resources to help the business grow was a very intentional and thoughtful process,” said Dick Van Eck, CEO of Fleet Services Inc. “We could not be more excited to partner with CTTP and Sope Creek Capital for the journey ahead. Our shared commitment to people, service and growth is a recipe for success.”

“When we bring businesses together, we work hard to ensure our client finds the right partner, and we could not be more confident that Fleet Services, CTTP and Sope Creek are the right partners to build a leading national aftermarket heavy-duty distribution platform,” said Tom Marx, Founder of Hart Marx Advisors.

Financing for this transaction was provided by Sope Creek Capital, Plexus Capital and Georgia Banking Company. Hart Marx Advisors advised Fleet Services Inc. through the transaction. Fleet Services will remain a member of the VIPAR Heavy Duty network.

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About Commercial Truck and Trailer Parts

Originally formed in 2003 and reincorporated in 2019, the Company has a long track record of distributing truck and trailer parts in the independent heavy-duty aftermarket channel. CTTP carries over 350+ nationally recognized brands and serves a diverse customer base across multiple industries including intermodal, freight and shipping, distribution, leasing services, repair services, and OEM manufacturers.

About Fleet Services

Founded in 1966, Fleet Services has a been a mainstay in the Anaheim market since its founding and has expanded into San Berardino, Ventura and San Diego over time. The Van Eck family founded the business with a focus on repair, and over 6 decades and three generations the business has grown into a leading regional distributor of heavy-duty parts and service provider in Southern California serving an expansive customer base across repair shop, transportation, utility, municipal and construction end-markets. (www.fleetservicesinc.com)

About Sope Creek Capital

Sope Creek Capital, an Atlanta-based family office and founded by logistics veteran Kevin Nolan, is focused on providing buyout, growth and venture capital to industry-leading companies and entrepreneurs within the transportation, distribution and logistics space. Sope Creek Capital has a proven, industry-focused model designed to build distinctive companies within the supply chain ecosystem. (www.sopecreekcap.com)

About Hart Marx Advisors

Hart Marx Advisors is the premier boutique consulting firm that assists buyers and sellers exclusively within the automotive and heavy-duty industries with mergers and acquisitions (M&A), divestitures and strategic planning. Hart Marx Advisors provides buyers and/or sellers with a full range of services, including M&A strategy, planning, investigation, buyer/seller identification, negotiations, due diligence support and integration. With locations in San Rafael, CA; Eagle, ID; Kansas City, MO, Bloomfield Hills, MI; Dallas, TX; and London, UK, Hart Marx Advisors specializes in lower to middle market business transactions. For more information on Hart Marx Advisors, visit our website. (www.hartmarxadvisors.com)

 

For media inquiries, contact:

Chris Bovis
cbovis@hartmarxadvisors.com

 

 

31 Oct 2024
Sticky Post By Posted in Opportunities Permalink

Wanted: Tool Companies and Tool Manufacturers

Sticky Post By On October 31, 2024

Our client is a successful manufacturer and distributor of professional automotive tools and supplies. They are looking to grow through acquiring tool companies or product lines that are complimentary to their current product offerings and distribution channels.

Examples of products include:

  • Auto glass replacement tools
  • Auto glass handling equipment
  • Problem solving tools like stud removers
  • Creepers and wheel chocks
  • Diagnostic tools
  • Tire repair tools
  • Tire shop equipment
  • Oil change and fluid tools and funnels
  • Wrap and window film application tools
  • Tool organization products
  • Hooks, pulls, and tie downs
  • Welding and surface prep products
  • Innovative, unique products

Our client prefers companies that manufacture in North America, although this is not a requirement.

 

Please direct all inquiries to:

Chris Bovis, Hart Marx Advisors

785-764-6248

CBovis@HartMarxAdvisors.com

 

Tom Marx, Hart Marx Advisors

415-601-1787

TMarx@HartMarxAdvisors.com

31 Oct 2024
Sticky Post By Posted in Opportunities Permalink

Wanted: Branded Automotive Aftermarket Replacement Parts Companies

Sticky Post By On October 31, 2024

Our client is a large manufacturer and distributor of branded replacement aftermarket parts operating throughout North America. Our client is looking to acquire respected brands for a wide range of product categories including:

  • Chassis
  • Drivetrain
  • Shocks
  • Brakes
  • Brake fluid
  • Bearings,
  • Air conditioning
  • Sensors (not engine or emission)
  • Replacement lighting
  • Side view mirrors
  • Other similar components

Engine agnostic or EV-related parts and tools are desired, but not required.

Our client prefers companies that contract manufacture and/or outsource manufacturing entirely or at least for a majority of their revenue. Light assembly and kitting OK.

Ideal candidate companies will have a respected North American brand that sell to major retailers and marketing groups as well to 2-step distributors/jobbers, small chains and OE dealerships. B2B and B2C desired. A strong succession plan or management team is preferred.

 

Please direct all inquiries to:

Chris Bovis, Hart Marx Advisors

785-764-6248

CBovis@HartMarxAdvisors.com

 

Tom Marx, Hart Marx Advisors

415-601-1787

TMarx@HartMarxAdvisors.com

 

 

04 Jun 2024
Sticky Post By Posted in News Permalink

DuraBrake Announces New Investor

Sticky Post By On June 4, 2024

• Tiger Lily Holdings to support DuraBrake’s future growth and transformation
• Existing Shroff family ownership group will remain meaningful equity owners and continue to comprise the DuraBrake senior leadership team

SANTA CLARA, CA – June 4, 2024 – DuraBrake, a leading provider of brake and wheel-end components for heavy duty commercial vehicles, has announced that Tiger Lily Holdings has made a significant investment in the company. The existing Shroff family ownership group will remain meaningful equity owners and continue to comprise the DuraBrake senior leadership team.

DuraBrake’s Neil Shroff commented, “We are excited to partner with Tiger Lily. We believe its investment philosophy aligns well with DuraBrake’s long-term strategy, and will allow us to accelerate our growth plans, continue to invest in new products and markets and improve our value proposition to customers and partners.”

DuraBrake has a leading position in key market segments, with a history of innovation, product development and industry leading quality.  For over 25 years DuraBrake has worked to build strong brand recognition. “We see the opportunity to support the continued expansion of the business through growth in new products and serving new geographies” said Scott Cullerton, Managing Member at Tiger Lily. “We will also be opportunistic in further expediting growth through strategic acquisitions.”

The investment in DuraBrake by Tiger Lily was facilitated by Hart Marx Advisors, the premier boutique consulting firm that assists buyers and sellers exclusively within the automotive and heavy-duty industries with mergers and acquisitions (M&A), divestitures and strategic planning. The financial terms of the purchase were not disclosed.

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About Tiger Lily

Tiger Lily (www.tigerlilyholdings.com) is a leading independent investment firm focused on being a durable partner to exceptional small businesses.  Based in the San Francisco Bay Area, Tiger Lily partners with owners to resolve succession planning, drive growth and build on existing legacies.  Tiger Lily is led by Scott Cullerton who brings over 20 years of experience as an equity and credit investor.

About DuraBrake

DuraBrake (www.durabrake.com) is a leading provider of aftermarket brake drums, rotors, hubs, and calipers for medium and heavy-duty commercial vehicles.  DuraBrake’s differentiated customer service is based on consistent quality, innovative design, reliable short lead-time product availability and a unique ability to produce specialty, custom, and OEM-discontinued replacement parts. DuraBrake, is headquartered in Santa Clara, CA and distributes to customers throughout the US and Canada.

About Hart Marx Advisors

Hart Marx Advisors is the premier boutique consulting firm that assists buyers and sellers exclusively within the automotive and heavy-duty industries with mergers and acquisitions (M&A), divestitures, and strategic planning. Hart Marx Advisors provides buyers and/or sellers with a full range of services, including M&A strategy, planning, investigation, buyer/seller identification, negotiations, due diligence support and integration. With locations in San Rafael, CA; Eagle, ID; Kansas City, MO, Bloomfield Hills, MI; Dallas, TX; and London, UK, Hart Marx Advisors specializes in lower to middle market business transactions. For more information on Hart Marx Advisors, visit www.hartmarxadvisors.com.

 

For media inquiries, contact:

Neil Shroff
neil@durabrake.com

Scott Cullerton
scott@tigerlilyholdings.com

For HMA PR inquiries, contact:

Chris Bovis
cbovis@hartmarxadvisors.com

 

 

23 Apr 2024
Sticky Post By Posted in Opportunities Permalink

Heavy-Duty Vehicle Parts Distributor and Service Center For Sale

Sticky Post By On April 23, 2024

Multiple Locations in Major Metro Market, Profitable and Growing

PROJECT STAR TREK: The company is a family-owned heavy-duty parts and service business with nearly 60 years in operation. It has multiple Western U.S. locations serving customers through counter sales, parts delivery, service and remanufacturing capabilities for heavy duty vehicles.

The company has unique under vehicle service capabilities and equipment,, as well being an authorized service center for leading OEMs. Parts distribution includes the top premium brands for heavy-duty and commercial vehicles. The company has experienced steady growth over several years with FY2023 revenue over $16.5M and over $1.1M adjusted EBITDA.

Customers include all types of commercial and heavy-duty vehicles for fleets, owner/operators and numerous municipalities including transit buses, school districts and first responder vehicles.

 

 

Company Details:

  • 53% gross margin, service
  • 41% gross margin, parts
  • Strategic, major market locations
  • Member of national buying group
  • Extensive premium parts line card
  • Certified service center for 2 OEMs
  • Unique alignment and a/c service capabilities
  • Remanufacturing center for critical components
  • Succession plan in place
  • Customer and employee values driven culture

 

For more information, return the NDA found here or contact:

Tom Marx
415-601-1787
TMarx@HartMarxAdvisors.com

Chris Bovis
785-764-6248
CBovis@HartMarxAdvisors.com

22 Jan 2024
Sticky Post By Posted in Opportunities Permalink

Aftermarket & Performance Companies Wanted

Sticky Post By On January 22, 2024

Our client is a strategic buyer looking for acquisitions in the aftermarket and performance parts markets with emphasis on powertrain and driveline products for 4×4 light truck, diesel and domestic performance automotive.  The ideal acquisition company would design, manufacture and distribute their products.

Financial Criteria

  • EBITDA range of $2M to $30M, although could be lower for highly strategic companies
  • Consideration given for companies with highly strategic or innovative products

Acquisition Company Attributes

  • North American headquarters
  • Enthusiast focused products
  • Products serving diesel and gas 4×4 light trucks and off-road
  • Transmission and driveline companies serving domestic performance or truck and off road markets
  • Any sales channel (B2B, B2C, etc.)
  • Strong brand and segment leading products is a plus
  • Unique IP and innovative products is a plus

Product Categories

  • Products for use on light duty truck, Jeep, UTV and work-related vehicles
  • Engines and engine components for diesel and gas-powered light trucks and cars
  • Turbochargers, superchargers and manifolds
  • Suspension and chassis components
  • Transmissions and driveline components
  • Software and tuning products
  • Remanufacturing or transmission building capacity is a plus

Our client is experienced in the performance aftermarket with a strong record of growth and value creation.

 

If you know of a company that fits some or all of these attributes, please contact us. All inquiries will remain confidential.

Chris Bovis, Hart Marx Advisors

785-764-6248

CBovis@HartMarxAdvisors.com

 

Tom Marx, Hart Marx Advisors

415-601-1787

TMarx@HartMarxAdvisors.com

20 Mar 2023
Sticky Post By Posted in Opportunities Permalink

Aerosol Chemical Manufacturer, Blender and Bottler

Sticky Post By On March 20, 2023

HIGH EXCESS CAPACITY, STRONG GROWTH, 16% ADJ EBITDA

Project CLEAN is a Midwest-based manufacturer of aerosol chemicals for both private label and its own branded products. They have 80 years of experience and the capability to produce and package aerosol and liquid products products.

It operates from its 100,000-square-foot integrated manufacturing facility which also houses sales, marketing, administration, R&D, QC and chemical formulation lab.

The company has an excellent growth plan that continues to generate results. The company primarily serves automotive and industrial markets but can produce aerosol products for any market.

The company is an ideal acquisition for an existing platform that is looking to grow capability and capacity, but it is also a good operating platform that is poised to grow both organically and inorganically.

Project CLEAN Company Details:

  • Adjusted EBITDA of ~16% ($2,008,502)
  • +30% Revenue from FY2020 to FY2022 ($12.5M)
  • +25% Net Profit from FY2020 to FY2022
  • Chemical engineer with QC & formulation lab
  • Recent $10M facility reinvestment
  • Low-cost manufacturing
  • Strategic add-on or platform
  • 500 gallon blending capacity
  • Currently utilizing less than 15% of plant capacity
  • Strategic central location
  • Extensive formula library
  • Strong experienced leadership team
  • Established 80+ year company

Interested parties can complete an NDA here and return to any of the contacts below. Hart Marx Advisors has a CIM available, and both HMA and the company is available to answer questions.

Current YTD financials are available in the dataroom. The IOI deadline is May 26, 2023.

 

For more information, contact:

Tom Marx
415-601-1787
TMarx@HartMarxAdvisors.com

John Nodson
914-482-0683
JHNodson@HartMarxAdvisors.com

Chris Bovis
785-764-6248
CBovis@HartMarxAdvisors.com

 

21 Feb 2023
Sticky Post By Posted in Advantage Permalink

Transaction Lessons and Reflections

Sticky Post By On February 21, 2023

Each transaction is as unique as a fingerprint, but there are similar traits among all successful transactions. To attempt to answer these questions with a concrete example, we reviewed a recent transaction with both the seller and buyer and compiled the lessons learned.

Read more

10 Oct 2022
Sticky Post By Posted in Opportunities Permalink

INNOVATIVE MANUFACTURER OF PERFORMANCE ENGINEERED SUSPENSION SYSTEMS AND COMPONENTS

Sticky Post By On October 10, 2022

Project GT350 is a U.S.-based industry leader of premium engineered suspension kits for muscle cars, collector cars, custom cars, and trucks through early 2000s. The company offers the broadest range of suspension solutions for popular performance aftermarket car models starting from the 1940’s.

The company has diversified into industrial vehicle products as a supplier for both new vehicles and aftermarket replacement products. Testing and approval were completed in 2022 and expected to add 6-10% incremental revenue in 2023.

The company can fit seamlessly into a larger performance brands company or remain a standalone business and basis for acquisitions. Their customer is also purchasing brakes, wheels, engine, exhaust, and body components in both the restoration and high-performance markets.

Project GT350 Company Details:

  • Adjusted EBITDA of ~11% (approx. $900,000)
  • Average Margin of 46%
  • Revenue +10% from 2019 to projected 2022
  • AS 9003S manufacturing floor
  • Engineering team with R&D Center
  • Product and industry innovator
  • Unmatched product integrity and performance
  • Industrial applications coming to market
  • Patent protection over key products
  • Transparent reporting systems and culture
  • Integrated manufacturing and component supply
  • Strong experienced leadership team
  • Established 35+ year premium brand
  • Long employee, customer, and vendor retention
  • EV Expertise

 

The company will be at the SEMA show November 1-4 and available for in person introductions.

 

For more information, contact:

Chris Bovis
Partner, Hart Marx Advisors
785-764-6248
CBovis@HartMarxAdvisors.com

Tim Wheeler
Partner, Hart Marx Advisors
248-515-6344
TWheeler@HartMarxAdvisors.com

12 Sep 2022
Sticky Post By Posted in Opportunities Permalink

Heavy Duty Truck Parts and/or Service Businesses Wanted

Sticky Post By On September 12, 2022

Our client is looking for regional or national parts retailers with or without service bays in the heavy-duty/commercial vehicle truck and trailer markets, primarily Classes 6-8. Multiple market segments will be considered from agriculture, construction, waste management, energy, freight and shipping, intermodal, food and beverage, leasing, long- and short-haul, mining, transit and school bus, and work trucks.

 

Detail Page:

Our client is looking for regional or national parts retailers with or without service bays in the heavy-duty truck/commercial vehicle and trailer markets, primarily Classes 6-8. Multiple market segments will be considered from agriculture, construction, waste management, energy, freight and shipping, intermodal, food and beverage, leasing, long- and short-haul, mining, transit and school bus, and work trucks.

Acquisition Target Profile

  • Retail sales and regional distribution of heavy-duty/CV parts
  • Service, primarily around key categories
    • Drive-in, bay service
    • Transmissions and differentials
    • Spring and suspension
    • Inspections
    • Engine repair
    • Driveline and flywheel
    • Fluid power/hydraulics systems
  • United States locations preferred

 

For more information, contact:

Tim Wheeler at 248-515-6344 or twheeler@hartmarxadvisors.com

Tom Marx at 415-601-1787 or tmarx@hartmarxadvisors.com

 

 

12 Sep 2022
Sticky Post By Posted in Opportunities Permalink

Mobile Electronics or Performance/Specialty Auto Parts Distributors Wanted

Sticky Post By On September 12, 2022

Our client is looking for local, regional or national distributors of automotive, light truck, and mobile electronics parts.  Any location or territory will be considered and any level of sales or earnings.  Our client is prepared for a short analysis and quick close.

Acquisition Target Profile

  • Any automotive or light truck parts distributor will be considered including replacement, performance, and upfitting parts
  • Mobile Electronics preferred
  • US based companies preferred
  • Interested in 100% ownership position
  • Any level of revenue and EBITDA will be considered
  • 45 days close or less is possible

 

For more information, contact:

Tim Wheeler at 248-515-6344 or twheeler@hartmarxadvisors.com

Chris Bovis at 785-764-6248 or cbovis@hartmarxadvisors.com

 

12 Aug 2022
Sticky Post By Posted in Opportunities Permalink

Businesses Wanted: US Manufacturer of Metal Automotive Truck Products

Sticky Post By On August 12, 2022

Our client is a strategic buyer looking for acquisitions in the light duty truck, Jeep and UTV markets. The ideal acquisition company would design, manufacture, and distribute products in the truck bed accessories, bumpers, suspension, work truck, Overland, Powersports and Outdoor Enthusiast categories.

Read more

28 Jun 2022
Sticky Post By Posted in News Permalink

Tidewater Fleet Supply / TNT Parts Announces Acquisition of D&J Supply, Inc.

Sticky Post By On June 28, 2022

ATLANTA – June 28, 2022 – TNT Parts is has announced that it has added D&J Supply, Inc. in Lithonia, Georgia to its team through an acquisition. As a family owned and operated business for over 45 years in east Atlanta, D&J brings a wealth of knowledge in the aftermarket heavy-duty truck parts industry combined with a talented team delivering exceptional customer service.

“We are thrilled to have a company of the quality of D&J join TNT Parts,” said Dale Herold, CEO of Tidewater Fleet Supply / TNT Parts. “Our continued goal is to be the customer’s first choice as the best provider for their heavy-duty truck and trailer and equipment parts needs. We are committed to exploring new ways to better serve our customers today and in the future. Partnering with D&J allows us to increase the number of customers we can reach and also positions us to take care of their other aftermarket parts needs.”

Jeff Schubach and Dan Schubach, Presidents of D&J Supply Inc. said, “we chose to join Tidewater Fleet Supply / TNT Parts because of their company culture. How they care for their employees and how they care for their customers was a perfect fit for us.”

D&J Supply joining TNT Parts brings together two highly rated, honest and reputable local companies who care, and are perfectly positioned to support the needs of truck fleets and individual operators and repair shops in the Atlanta metro area. Both companies are, and remain, a part of VIPAR Heavy Duty, North America’s leading network of independent aftermarket truck parts distributors.

The purchase of D&J Supply, Inc. by TNT Parts was facilitated by Hart Marx Advisors, the premier boutique consulting firm that assists buyers and sellers exclusively within the automotive and heavy-duty industries with mergers and acquisitions (M&A), divestitures and strategic planning. The financial terms of the purchase were not disclosed.

 

 

About Tidewater Fleet Supply & TNT Parts

Tidewater Fleet Supply (dba Tidewater Fleet Supply and TNT Parts) is a leading Southeastern independent wholesale distributor of heavy- and medium-duty aftermarket truck, trailer and equipment parts serving 4,000+ commercial and municipal customers through 14 locations across VA, GA, NC, SC, and FL.  The Company also services municipalities and government customers through dedicated facilities.  With an emphasis on customer service, extensive parts knowledge, training, and inventory, Tidewater Fleet Supply develops and supports deep relationships with its customers and suppliers.

Tidewater Fleet Supply www.tidewaterfleetsupply.com & TNT Parts www.tntpartsinc.com are a part of the Falcon Affiliates family of companies. For more information on Falcon Affiliates visit www.falconaffiliates.com.

 

24 Mar 2022
Sticky Post By Posted in Opportunities Permalink

Innovative Manufacturer of High-Performance Engineered Suspension Systems and Components

Sticky Post By On March 24, 2022

Premium products with 45% Gross Margin and 15% Adjusted EBITDA

The Company is a US based industry leader and pioneer of premium engineered suspension kits for muscle cars, collector cars, custom cars, and trucks through early 2000s. The Company offers the broadest range of suspension solutions for all popular performance aftermarket car models starting from the 1940’s. The Company has patent protection over its most innovative design.

The Company can fit seamlessly into a larger conglomerate of similar premium performance brands or remain a standalone business with strong ROI and a basis for acquisitions. Their customer is also purchasing brakes, wheels, engine, exhaust, and body components in both the restoration and high-performance markets.

 

Company Details:

  • Adjusted EBITDA of 15% ($1.25M)
  • Average Margin of 45%
  • Revenue increased 17% from 2019 to 2021
  • AS 9003S manufacturing floor
  • Engineering team with R&D Center
  • Product and industry innovator
  • Unmatched product integrity and performance
  • Industrial applications coming to market
  • Transparent reporting systems and culture
  • Integrated manufacturing and component supply
  • Strong experienced leadership team
  • Established 35+ year premium brand
  • Best in class customer support
  • Long employee, customer, and vendor retention

 

For more information, contact:

Chris Bovis
Partner
785-764-6248
CBovis@HartMarxAdvisors.com

Tim Wheeler
Partner
248-515-6344
TWheeler@HartMarxAdvisors.com

27 Oct 2021
Sticky Post By Posted in Opportunities Permalink

LEADING EMISSIONS AND AFTERMARKET EXHAUST MANUFACTURING COMPANY FOR SALE

Sticky Post By On October 27, 2021

The Company is a leading manufacturer of replacement automotive emissions products and aftermarket performance exhaust systems. The company is a pioneer in “direct fit” exhaust products and produces all products from their corporate headquarters in the Southwest.

Company Details:

  • Revenue has increased 12% from 2019 to 2021
  • EBITDA has more than doubled since 2019
  • Launched new product line to capture remaining 50% of their core market
  • Innovative and nimble product development model
  • Limited overseas competition
  • Additional production capacity exists in current facility
  • Experienced leadership can remain post-transaction
  • Loyal management and production team
  • Major metro area provides deep pool of employment opportunities and ample freight in/out

Immediate growth is attainable to a new owner with greater liquidity to fund materials necessary to meet existing demand and expand launch of new product line.  The company can remain as a stand-alone automotive component platform or be integrated into an existing company looking for emissions and exhaust component expertise and a deep catalog.

For more information, please contact:

Tom Marx
Hart Marx Advisors
415-601-1787
tmarx@hartmarxadvisors.com

Tim Wheeler
Hart Marx Advisors
248-515-6344
twheeler@hartmarxadvisors.com

19 Oct 2021
Sticky Post By Posted in Opportunities Permalink

Award-Winning Performance Automotive Aftermarket Distributor

Sticky Post By On October 19, 2021

The company is a leading distributor of top aftermarket brands for cars and trucks, selling upgrade performance products and accessories for automobiles and light trucks and it has earned the designation of Master Distributor for top brands. The company is primarily a B2B wholesaler with multiple warehouses, but also has established retail, e-commerce, and fulfillment channels.

Company Details:

  • Revenue has increased 39% from 2019 to Projected 2021
  • EBITDA more than triples from 2019 to Projected 2021
  • Last mile, next day delivery through owned truck fleet
  • Diverse customer base with little concentration
  • Distributes top industry brands
  • Strong customer service philosophy
  • Founder family owned

Large Eastern U.S. geographic territory

For more information, contact:

Chris Bovis
Managing Partner
Hart Marx Advisors
cbovis@hartmarxadvisors.com
785-764-6248

Tom Marx
Senior Partner​​
Hart Marx Advisors
tmarx@hartmarxadvisors.com
415-601-1787

 

 

04 Oct 2021
Sticky Post By Posted in News Permalink

Tim Wheeler Joins Hart Marx Advisors as Partner

Sticky Post By On October 4, 2021

• Wheeler brings over 32 years of experience to the Hart Marx Advisors team
• Demonstrated history of success and growth across the automotive aftermarket, OE and performance sectors
• New role will focus on business development, customer outreach and buy/sell transaction support
• Addition of Wheeler and updated roles for other team members support the firm’s future growth goals

Hart Marx Advisors, the premier boutique automotive industry merger and acquisition (M&A) advisory firm is pleased to announce Tim Wheeler has joined as partner.

Wheeler brings more than 32 years of automotive industry experience to his new role, which will focus on business development, customer outreach and stewardship of M&A transactions on both the buy and sell side.

Throughout his career, Wheeler has been involved with a variety of mergers, acquisitions and implementations, and brings with him an integral understanding of the process and importance of a company being able to reach its growth or divestiture goals.

“We are excited to expand the Hart Marx Advisors team. Tim’s skillset and experience make him an exceptionally well-rounded addition,” said Tom Marx, founding partner, Hart Marx Advisors. “His depth of knowledge across a variety of sectors and personal experience with mergers and acquisitions throughout his career give him a unique and invaluable understanding, which will be incredibly valuable to our clients as he guides them through the M&A process.”

Prior to joining Hart Marx Advisors, Wheeler most recently served as vice president, sales, for WELD Racing, LLC, working specifically in the OEM and special markets division where he significantly grew the earnings of various programs. Wheeler also held positions at ROUSH Performance as vice president, sales and marketing, and Delphi Product and Service Solutions, working in a variety of senior roles, including vice president, sales, North America.

“I am excited to join an established, automotive focused firm like Hart Marx Advisors,” said Wheeler. “Throughout my career, I’ve been focused on building strategic value and partnerships and I look forward to putting this experience to work for our clients.”

Wheeler began his career at Federal-Mogul, where he started in sales and customer service operations. He became the organization’s first eBusiness director, leading digital business development strategies across the North American aftermarket.

Wheeler received his bachelor’s degree in business administration from Hope College in Holland, Michigan and executive MBA from the Richard DeVos Business School at Northwood University in Midland, Michigan. He was also awarded Delphi’s “Excellence Award for Emerging Leaders” during his time with the company.

The addition of Wheeler to the Hart Marx Advisors team is part of a strategic restructuring of the firm to support future growth goals. This restructuring also includes the transition of Chris Bovis to managing partner, Tom Marx to founding partner and Devin Hart to executive vice president of finance. Wheeler purchased all of Hart’s member interest when joining the firm, and Hart will continue to be active with the organization consulting on matters of finance, accounting, business administration and due diligence on client projects.

19 Jul 2021
Sticky Post By Posted in Opportunities Permalink

Business Wanted: Automotive Service Centers and Shops

Sticky Post By On July 19, 2021

Our client is looking to acquire automotive service businesses in the Great Lakes area.  They are looking for both single locations and chains, preferably with no brand affiliation or vehicle type specialty.  Our client prefers companies with broad service capabilities but will investigate a specialist shop if the location or size is correct.

Well run businesses with an established reputation are preferred but not required. Shops with underutilized capacity may be acceptable.

  • Automotive and/or light duty truck service centers
  • Single location or Multiple location chain
  • Great Lakes area (approximately Minneapolis to Detroit)
  • Generalists with broad service capability preferred
  • Shops that are independent of brand affiliation
  • Founder/owner businesses preferred but not required
  • No minimum bay requirement
  • $500,000 minimum revenue per location, $1M or above desired
  • EBITDA minimum not defined

For more information, please contact Hart Marx Advisors:

Tom Marx
415-462-1805
tmarx@hartmarxadvisors.com

Chris Bovis
785-764-6248
cbovis@hartmarxadvisors.com

14 Jun 2021
Sticky Post By Posted in Opportunities Permalink

Driveshaft Company for Sale

Sticky Post By On June 14, 2021

Remanufacturing Equipment and Capability

The Company is the provider of new and remanufactured driveshafts that are sold in North America. The Company has significant capabilities, inventory and experience to serve a diverse customer base, and has earned reputation for quality and dependability.

The Company is an excellent strategic acquisition opportunity for an acquirer who wishes to expand their existing driveshaft business or acquire driveshaft remanufacturing capabilities and inventory.

While sales are currently approximately $1M, the company has proven their ability to achieve and sustain $4M to $5M in sales revenue resulting in EBITDA ranging between 13% to 19%.

The owner wishes to retire upon the sale of the business.

Opportunities Include:

 Integrate equipment, inventory, and customer base to expand existing capabilities and sales within acquiring business

  • Create driveshaft original and remanufacturing new business unit within acquiring business
  • Apply expertise and equipment to new markets and expand the product line
  • Automate certain manufacturing processes to speed up turnaround time and reduce costs
  • Increase investments in new driveshafts and components to provide faster turnaround for more applications
  • Resell more parts and components made by suppliers to expand the product offering
  • Hiring additional salespeople and expanding marketing efforts will support growth opportunities

 

For more information, please contact Hart Marx Advisors:

Tom Marx

415-462-1805

tmarx@hartmarxadvisors.com

Chris Bovis

785-764-6248

cbovis@hartmarxadvisors.com

14 Dec 2020
Sticky Post By Posted in Resources Permalink

COVID and Cars: What Does the Data Say?

Sticky Post By On December 14, 2020

Long-Term Trends for the Light-Duty Automotive Aftermarket

The automotive aftermarket has a 50-year trend of growth and resiliency. Americans still utilize the automobile as the gateway to countless activities from the base necessities to luxuries like travel. The aftermarket broadly offers consumers greater choice and value in maintaining their vehicles, attributes that perform well in good and challenged economic conditions.

Parts and services sales rely on a couple of critical factors. Miles driven is the best predictor of parts replacement and service. Additionally, vehicle age is also an important driver as older vehicles result in more parts and service sales.

The long-term trend for the primary measurement of our economy…Gross Domestic Product (GPD)…has shown a steady growth for almost 50 years. The light duty automotive aftermarket is a very stable market with long-term positive trends similar to the GDP. Charts 2 and 3 below along with the supporting sets of data show these trends…even thru recessions and other major impacts to our economy.

The Covid-19 impact in 2020 is following a similar pattern of dip and recovery to previous recessions (see chart 1). Miles driven in January and February 2020 were each over 2% higher than in 2019. The impact of Covid-19 began in March. By April vehicle miles were 40% lower than in 2019. After April vehicle miles increased significantly and by September were only down 8.6% as compared to 2019.

Driving to and from work represents 30% of light vehicle miles driven. While the long-term viability of working from home for select occupations remains unknown, the short-term impact is largely offset by the automobile being viewed as safer than air or other public transportation. Other top automobile uses include other work-related travel, visiting friends and relatives and driving to school, daycare and church. (1)(2) As people have begun to resume their normal activities miles driven has increased and is projected to continue to increase in the future. (3)

In addition to the positive miles driven trend there are other consistent and positive trends for the light vehicle aftermarket:
• The average age of light vehicles has been increasing. As vehicles age, they need greater service and more replacement parts.
• The total number of light vehicles in use has steadily increased. More vehicles on the road results in a larger market for service and parts.

The two premier organizations representing the automotive industry…the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA)…show the light-duty automotive aftermarket is large and stable…currently about $300 billion in sales for parts and service…and is projected to continue growing in the future.

In summary, the light-duty automotive aftermarket is a very stable and highly predictable market. Short-term economic disruptions are overcome and sales return to a steady growth pattern.

(1) U.S. Department of Transportation (DOT), Federal Highway Administration (FHWA) (2019) Highway Statistics 2018 (details)
(2) Center for Sustainable Systems, University of Michigan 2019. Personal Transportation Factsheet Pub. No. CSS01-07
(3) Auto Care Association / Automotive Aftermarket Suppliers Association (AASA) Channel Forecast Model – Chart 6

Chart 1

Chart 2

Chart 3

Chart 4

Chart 5

Chart 6

15 Oct 2020
Sticky Post By Posted in News, Opportunities Permalink

Mark Iasiello Joins Hart Marx Advisors as Vice President, Heavy Duty and Commercial Vehicles

Sticky Post By On October 15, 2020

With over 35 years of experience across numerous HD and commercial vehicle business types from manufacturers to distributors to retailers, Iasiello is uniquely qualified to understand the dynamics and trends of the industry and the challenges that its business owners face.

Read more

10 Aug 2020
Sticky Post By Posted in Resources Permalink

Services Spotlight: Market Analysis

Sticky Post By On August 10, 2020

M&A research in the world of COVID-19

There are many factors and influences within the automotive aftermarket, including some that were unimagined until recently. Given the dynamic and unpredictable events of 2020, how can we determine the future of the automotive aftermarket?

For the purposes of market analysis, we use historic data from similar times in the past, blended with the unique changes in our current environment to get a perspective for the future of our industry. We have seen and recovered from slow-downs in the past and will do so again this time.

The light duty automotive aftermarket is a very stable market with long-term positive trends. Simply put, parts and services are sold when vehicles are used. After the Great Recession vehicle miles increased at about 1.3% per year (CAGR) from 2011-2019 and sales closely matched the mileage trend.

What was the Covid-19 impact? From early March 2020 to mid-April, miles driven dropped 57%. By May 1st mileage had started to increase but was still down 44%. (1)

The predominant mode of travel in the United States is by automobile and light truck, accounting for about 69% of passenger miles traveled in 2018. Driving to and from work represents 30% of light vehicle miles driven. Other top uses include work related travel, visiting friends and relatives and driving to school, daycare and church. (2)(3) Vehicle use obviously drives maintenance, parts consumption, and even collision and repair. As people have begun, although slowly to resume their normal activities, miles driven will continue to increase and the aftermarket will rebound.

The market is indeed dynamic. When large numbers of people stayed at home and did not drive, the miles driven dropped significantly. While more people have returned to their workplaces, the lingering work-from-home impact will likely affect the aftermarket to some degree. The variables that determine the durability of the work-from-home trend are complex and largely unknown at this point. At the time of writing, the impact of widespread home offices on productivity, morale, and profitability are not known.

The long-term work-from-home trend is also a study in human behavior. Densely populated cities, with often fewer miles driven per capita are seeing an exodus to the suburbs and less dense, and less expensive areas were cars are a necessity and mobility and pandemic restrictions are reduced. With no relevant data in our history, the viability of work-from-home and its widespread impact remains speculative.

There are always opportunities. Some companies are more aggressive in finding or making the opportunities necessary for profitable sales. Other companies may just be in the right place at the right time with their offering. In some cases, consolidation can be a savvy option to achieve profitability in a challenging market by reducing operating expenses, inventory, equipment, and facilities.

Like most business activity, M&A slowed in Q2 as investors evaluated their current holdings and developed short and long-term plans to move forward. Now, some investors are beginning to look for troubled businesses. Others are cautiously resuming searches for appropriate bolt-ons to current investments as well as strong platforms based on solid historic performance and future market potential.

M&A in the automotive aftermarket is moving forward. Activity and interest from investors and companies looking for opportunities that match their criteria is increasing. Investors believe in the long-term stability of our market and its long-term growth potential, backed by historic data and performance. Selecting the right opportunities is a key to success.

HMA’s extensive automotive market experience allows us to find the right opportunities for our clients, both buyers and sellers. We do extensive and transparent research rooted in our wide network of contacts and resources developed over decades in the industry. HMA delivers a significant level of detail in acquisition searches that are tailored to each client’s needs.

John Nodson
Vice President, Research
Hart Marx Advisors
jhnodson@hartmarxadvisors.com

(1) Source: Auto Care Association Factbook 2021, Jefferies Group, Arity, Municipal Open Data Portals, TomTom, GTCOM, AutoNavi
(2) U.S. Department of Transportation (DOT), Federal Highway Administration (FHWA) (2019) Highway Statistics 2018 (details)
(3) Center for Sustainable Systems, University of Michigan 2019. Personal Transportation Factsheet Pub. No. CSS01-07