Kinderhook-backed Adell Group buys Powerflow

Adell Group Inc, a portfolio company of Kinderhook Industries LLC, said June 26 that it acquired Powerflow Inc, Powerflow Products Ltd, and Gestion Solutions Plastik Inc. Financial terms weren’t announced. Powerflow, of Buffalo, New York, provides injection-molded plastic accessories sold to automotive vehicle manufacturers and dealers.

PRESS RELEASE

Kinderhook-backed Adell Group Acquires Powerflow

June 26, 2019

Sunnyvale, TX – Adell Group Inc. (“Adell”), a portfolio company of Kinderhook Industries, LLC (“Kinderhook”), announced today the acquisitions of Powerflow Inc., Powerflow Products Ltd., and Gestion Solutions Plastik Inc. (together, “Powerflow” or the “Company”). Powerflow is a leading provider of injection-molded plastic accessories sold to automotive vehicle manufacturers and dealers. Powerflow represents the first add-on acquisition for Adell and Kinderhook’s 75thautomotive-related transaction. Financial terms of the transaction were not disclosed.

Based in Buffalo, New York with offices in Toronto, Ontario and Magog, Quebec, Powerflow provides state-of-the-art manufacturing and distribution solutions for injection-molded plastic trim products sold to automotive vehicle manufacturers and dealers. The Company’s product offerings include splash guards, body side moldings, bumper protectors, and door sills, which are sold to leading OEM customers including Toyota, Lexus, Subaru, Nissan, Infiniti, General Motors, and Chrysler. With over 50 years of operating history, Powerflow benefits from intrinsically intertwined operations and end-to-end, state-of-the-art manufacturing and distribution systems.

The combination of Powerflow and Adell unites two of the leading brands in the automotive accessories space, boasting a broad product offering for a wide variety of vehicle makes and models.

“We are excited about our partnership with Kinderhook and Adell. Powerflow intends to leverage the resources and experience of its new partners to continue providing our customers with top of the line products and service,” commented Doug Ward, Powerflow Founder and CEO.

“Powerflow represents a transformational acquisition for Adell as it expands its geographical presence, customer base, and product offerings,” said J Pearson, Adell CEO. “We look forward to working with the Powerflow team to continue building upon their strong brand name and track record.”

Tom Tuttle, Managing Director of Kinderhook Industries, stated, “We are excited to combine two leading brands with established histories of providing quality custom-made products. We look forward to sharing best operating practices between the companies as we continue to build the industry’s leading automotive accessory provider.”

Kirkland & Ellis LLP served as legal counsel to Adell. Financing for the transaction was provided by BBVA USA, Alliance Partners LLC, and Stifel Bank & Trust.
About Powerflow
Founded in 1969 and based in Buffalo, New York with offices in Toronto, Ontario and Magog, Quebec, Powerflow provides state-of-the-art manufacturing and distribution solutions for injection molded plastics trim parts sold to automotive vehicle manufacturers and dealers. The Company’s product offerings include splash guards, body side moldings, bumper protectors, and door sills, which are sold to leading OEM customers including Toyota, Lexus, Subaru, Nissan, Infiniti, General Motors, Chrysler, and others. With over 50 years of operating history, Powerflow benefits from intrinsically intertwined operations and end-to-end, state-of-the-art manufacturing and distribution systems.

About Adell Group
Founded in 1952 and headquartered in Sunnyvale, Texas, Adell is an integrated manufacturer of protective door edge guards as genuine original equipment to the automotive OEMs. Door edge guards protect a vehicle’s door and paint finish from abrasions and dents that occur with everyday use. The Company provides a full suite of production capabilities, including engineering, tooling, extruding, injection molding, metal fabricating, painting, and packaging. Adell’s proprietary door edge guards are installed on some of the most popular vehicle platforms in the United States.

For more information, please visit: www.adellcorporation.com

About Kinderhook Industries:
Kinderhook Industries, LLC is a private investment firm that manages over $3.0 billion of committed capital. We have made in excess of 210 investments and follow-on acquisitions since inception. Kinderhook’s investment philosophy is predicated on matching unique, growth-oriented investment opportunities with exceptional financial expertise and our proprietary network of operating partners. Our focus is on middle market businesses with defensible niche market positioning in the healthcare services, environmental / business services and automotive / light manufacturing sectors. We have a track record of successfully and consistently building industry leaders.