Kinderhook Industries Acquires IDQ from Castle Harlan

Kinderhook Industries has acquired IDQ Acquisition Corp from Castle Harlan. Headquartered in Garland, TX, IDQ is Kinderhook’s sixth platform investment in the automotive aftermarket and seventeenth purchase in the space, including add-on acquisitions.

PRESS RELEASE

Kinderhook Industries, LLC (“Kinderhook”) announced today the acquisition of IDQ Acquisition Corp (“IDQ”), a leader in the automotive aftermarket, from Castle Harlan, Inc. IDQ is Kinderhook’s sixth platform investment in the automotive aftermarket and seventeenth purchase in the space, including add-on acquisitions.

Headquartered in Garland, TX, IDQ is the leading provider of high-quality and easy-to-use air conditioning (“A/C”) maintenance and repair solutions for the do-it-yourself (“DIY”) automotive aftermarket in North America. The Company focuses on value-added products that not only stop leaks but also restore and ensure maximum A/C system performance through a combination of refrigerants, chemical additives and innovative delivery mechanisms.

“We are excited about our new partnership with Kinderhook that will enable IDQ to continue to grow and expand consumer awareness of our market-leading solutions,” said Michael Klein, CEO of IDQ. “IDQ’s unique value-added products offer consumers tremendous value compared to the alternative of having a mechanic perform the recharge. A/C PRO, our premium, “all-in-one” recharge kit helps consumers achieve professional-level results at a fraction of the cost and time of having a mechanic do it. The Kinderhook team shares our strategic vision of growing IDQ through branding and increased consumer awareness of our products, especially IDQ’s flagship product: A/C PRO.”

Chris Michalik, Managing Director at Kinderhook Industries, stated that, “IDQ has become the leading automotive aftermarket A/C solutions provider because of the company’s dedication to product innovation and customer support. IDQ offers customers an unmatched value proposition in the A/C recharge category. IDQ was the first company to launch an “all-in-one” recharge kit and over the past decade, it has continued to add new features and functionality as a result of direct customer and consumer feedback. The acquisition of IDQ aligns perfectly with Kinderhook’s investment strategy of partnering with world-class management teams to buy companies who are leaders in their respective niches.”

“IDQ has had extraordinary growth due to its product innovation, loyal customer base, market-leading service and exceptional management team led by Michael Klein and Gerry Rooney. This management team brings best-in-class leadership and relationships to the table and we are excited to partner with them,” said Tom Tuttle, Managing Director at Kinderhook Industries. “Kinderhook has developed an expertise in the automotive aftermarket and we are excited about the opportunity to invest in an innovative market leader like IDQ.”

Kirkland & Ellis LLP served as legal counsel to Kinderhook. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to the Castle Harlan, Inc. Jefferies & Co. served as financial adviser to IDQ.
About Kinderhook Industries

Founded in 2003, Kinderhook Industries is a private equity firm with $770 million of committed capital and an investment philosophy based on combining senior management and operating experience in a variety of industries with the financial and investment know-how of private equity professionals. Kinderhook primarily makes control investments in companies in which the firm can achieve significant financial, operational and growth improvements. The firm targets orphaned non-core subsidiaries of corporate parents, existing small capitalization public companies lacking institutional support and management-led recapitalizations of entrepreneur-owned companies. By providing access to capital, strategic advice and an extensive network of relationships, Kinderhook Industries has a history of successfully building privately held firms in partnership with management.

About IDQ

IDQ Holdings is the leading manufacturer of automotive A/C products for the “do-it-yourselfer” and professional service technician. IDQ offers a broad product line that includes value-added R-134a refrigerants to A/C tools and accessories, from one-step recharging and stop leak products to leak detection and lubricants.

For additional information about this transaction, please contact:

Chris Michalik Tom Tuttle
Managing Director Managing Director
+1 (212) 201-6782 +1 (212) 201-6781
cmichalik@kinderhook.com ttuttle@kinderhook.com

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