Blue Point buys Transtar

Blue Point Capital Partners has acquired Cleveland-based Transtar, a provider of original equipment and aftermarket automotive products for the transmission and driveline repair market. No financial terms were disclosed.

PRESS RELEASE

CLEVELAND / January 22, 2021 / Blue Point Capital Partners (“Blue Point”) announced today the acquisition of its eighth Blue Point IV platform investment, Cleveland-based Transtar Holding Company (“Transtar” or the “Company”). Transtar is a global leader in the value-added distribution of original equipment and aftermarket automotive products for the transmission and driveline repair market. The local partnership with Blue Point will accelerate the Company’s growth through continued refinement of its industry-leading e-commerce technology, enhancement of supply chain efficiencies and execution of strategic add-on acquisitions.

Transtar has distributed thousands of high-quality branded and propriety parts to transmission repair shops and other automotive channels around the globe since 1975. The Company’s e-commerce platform, transend, has revolutionized the customer experience by addressing inefficiencies that have plagued the driveline and transmission repair market for decades. transend’s intelligence layer leverages an extensive proprietary database to simplify the buying process—offering reliable product recommendations, providing live inventory availability and allowing customers to transact seamlessly. With the help of Blue Point’s own Data & Digital capabilities, Transtar is well-positioned to build upon transend’s success and capitalize on opportunities to gain market share.

“We look forward to working with the Transtar team to advance their e-commerce segment. Transtar’s mature data & digital capabilities, coupled with our distinct competencies in data analytics, digital marketing and customer management, will give the Company a strong competitive advantage,” said Blue Point Principal Brian Castleberry.

Transtar is a short drive from Blue Point’s Cleveland office, aligning with the Firm’s belief in the power of local partnerships. More than half of the Firm’s investments in the past 15 years have been driving distance from one of its domestic offices. This regional approach allows Blue Point businesses to work side-by-side, form lasting relationships built on mutual respect and inspire a company-wide commitment to value creation. “Having known the Transtar leadership team for many years, I could not be more thrilled to officially welcome them to the Blue Point family of companies. This partnership is a natural fit for the cultures of both organizations and aligns perfectly with Blue Point’s investment focus,” said Blue Point Partner Chip Chaikin. “We’re looking forward to working alongside this team to usher in the next phase of Transtar’s growth.”

In addition to Blue Point’s Data & Digital capabilities, the Firm will leverage its value-added distribution, talent management and supply chain experience to support the Company’s strategies. Blue Point is well-versed in growing manufacturing and distribution businesses, which make up 70% of its existing portfolio.

Blue Point acquired Transtar in partnership with management and alongside the Company’s President and CEO Neil Sethi, a longtime industry leader and former Blue Point portfolio company board member. Sethi brings a wealth of knowledge and experience in the value-added distribution and technology sectors. “Based on my years of experience working with the Blue Point team, I can confidently say that our partnership will offer Transtar exciting growth opportunities and strong leadership to ensure continued success. We are eager to work with Blue Point to execute our value creation plans and forge ahead in new product categories and market segments,” said Sethi.

Working alongside Chaikin and Castleberry to complete the transaction were Blue Point Partner Sean Ward, Managing Director Dennis Wu, Managing Director of Data & Digital Tye Howell, Vice President Evan Cottington and Associate Bobby Exler.

Blue Point was represented by BakerHostetler, Lincoln International provided debt financing advisory services and Stout acted as the exclusive financial & tax advisor in connection with the transaction.