Wind Point Builds Up Automotive Company –

Wind Point Partners this month revved up Qualitor, the firm’s automotive aftermarket platform, with the acquisition of publicly traded MascoTech’s aftermarket group, said Robert Cummings, a managing director at the Southfield, Mich.-based firm.

Although Mr. Cummings declined to disclose the transaction price, the financial press reported Mascotech sold its aftermarket division and another smaller division, which contributed approximately $12 million to 1998 sales, for $105 million.

Fleet Capital Corp. provided senior debt for the Qualitor add-on, while First Union Capital provided subordinated debt. Mr. Cummings described the acquisition as conservatively leveraged.

The five companies in Mascotech’s aftermarket group, based in Michigan, Ohio and Florida, are BLD Products, International Brake Industries, Hebco Products, Pylon Manufacturing Corp. and Mr. Bracket. The five companies-which generated 1998 revenue of more than $95 million-represent the first acquisitions for Qualitor, which Wind Point launched earlier this year in conjunction with Qualitor Chief Executive Ralph Reins.

According to Mr. Cummings, Wind Point will employ a buy-and-build strategy with the company. “The primary strength of the businesses we have acquired is in the emission control and sensor area and the braking market end, so our logical approach will be to target these two areas first.”

Prior to the joint venture with Wind Point, Mr. Reins held a number of positions in the automotive industry, including CEO and president of AP Parts International and Envirotest Systems, as well as president of Allied Signal Automotive.

Wind Point’s investment was made from its $197 million third fund. The firm currently is raising Wind Point Partners IV, L.P., which has a target of between $350 million and $400 million.