Kinderhook Industries LLC said April 16 that it acquired SCA Performance. Financial terms weren’t announced. SCA, of Trussville, Alabama, is an OEM authorized specialty vehicle manufacturer for light-duty trucks. Kirkland & Ellis LLP served as legal counsel to Kinderhook.
Kinderhook Industries Acquires SCA Performance
April 16, 2018
New York, NY – Kinderhook Industries, LLC (“Kinderhook”) announced today the acquisition of SCA Performance (“SCA” or the “Company”) in partnership with the McSweeney family. SCA Performance represents Kinderhook’s 52nd automotive-related transaction. Financial terms of the transaction were not disclosed.
Headquartered in Trussville, Alabama, SCA is a leading OEM authorized specialty vehicle manufacturer (“SVM”) for light-duty trucks. The Company receives new vehicles directly from the OEM’s, adds specialty packages and then sells the up-fitted vehicles to new truck dealers with a full OEM warranty. SCA’s vehicles are differentiated by their proprietary premium design packages, high-quality installations and OEM warranty.
Tom Tuttle, Managing Director at Kinderhook, stated, “We are very excited to be partnering with the McSweeney family to build on SCA’s tremendous reputation as the premier name for up-fitting light-duty trucks. The combination of the Company’s reputation for quality truck up-fits coupled with Kinderhook’s extensive experience and relationships in the truck aftermarket uniquely position this partnership for success.”
“We have enjoyed building a relationship with Kinderhook throughout this process and are confident this partnership will position SCA to achieve the next phase of its strategic plan,” said Matt McSweeney, President of SCA Performance. “We are excited to see what our new partnership and Kinderhook’s extensive relationships in the automotive industry can do for SCA as we continue investing in brand development and product innovation to accelerate growth.”
“SCA has become a leading SVM and key partner for the leading light-duty truck OEM’s,” said Paul Cifelli, Managing Director at Kinderhook. “The acquisition of SCA Performance perfectly aligns with Kinderhook’s investment strategy of partnering with world-class management teams to acquire companies who are leaders in their respective niches.”
As part of the transaction, Kinderhook will be adding J. Pearson and John Larson, both Kinderhook Operating Partners, to the Board of Directors. Mr. Pearson successfully built Kinderhook Fund I portfolio company, Carry-On Trailer, into the largest trailer manufacturer in the U.S., eventually culminating in a successful sale to Bain Capital. During his time with Carry-On Trailer, Mr. Pearson worked with private equity ownership, recapitalized the business, aggressively grew Carry-On organically and through acquisition. Going forward, Mr. Pearson will be the Executive Chairman and a key resource aiding SCA with strategic and operational initiatives. Mr. Larson is currently the CEO of Kinderhook Fund IV portfolio company, Bestop, and previously held a number of senior management positions at General Motors including General Manager of the Buick, Pontiac and GMC Truck Divisions. Mr. Larson will be invaluable as an additional link between SCA’s OEM partners and dealership customers.
Kirkland & Ellis LLP served as legal counsel to Kinderhook.
About Kinderhook Industries:
Kinderhook Industries, LLC is a private investment firm that manages over $2.0 billion of committed capital. We have made in excess of 150 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. In addition, Kinderhook is a licensed Small Business Investment Company (SBIC) with the U.S. Small Business Administration.
For more information, please visit: www.kinderhook.com
About SCA Performance:
Founded in 1979, SCA Performance is a leading OEM authorized specialty vehicle manufacturer for light-duty trucks. The Company receives new vehicles directly from the OEM’s, adds specialty packages and then sells the up-fitted vehicles to new truck dealers with a full OEM warranty. SCA’s vehicles are differentiated by their proprietary premium design packages, high-quality installations and OEM warranty. The Company is headquartered in Trussville, Alabama.