Kinderhook Industries has sold QCSA Holdings to strategic buyer Copart Inc. Financial terms were not disclosed.
Kinderhook Industries, LLC (“Kinderhook”) announced today the sale of QCSA Holdings, Inc. (“QCSA” or the “Company”) to strategic buyer Copart Inc. (“Copart”) (NASDAQ:CPRT). This is the second sale of a portfolio company in Kinderhook’s newest fund, Kinderhook Capital Fund III, and represents the twenty-first strategic exit out of twenty four total exits for the firm. Financial terms of the transaction were not disclosed.
QCSA Holdings, Inc. is the result of a successful consolidation program which included four follow-on acquisitions after the initial QCSA platform. The combined company processes over 100,000 crashed or charity cars through 39 auction facilities across 14 states and operates under the brands Quad City Salvage Auction, Crashed Toys, and Desert View Auto Auction.
“QCSA’s outstanding management team was able to execute upon its growth strategy which was accelerated through a successful buy-and-build initiative,” said Paul Cifelli, Managing Director at Kinderhook Industries. “The breadth and scale of QCSA operations offers significant strategic value to Copart. QCSA is well-positioned to continue to expand its business under Copart’s leadership.”
Copart provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and, in some states, to end users. Copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships and others as well as cars sourced from the general public. Copart operates 203 facilities with operations in the U.S., Canada, the United Kingdom, Brazil, Germany, and the United Arab Emirates.
John Lindle, CEO of QCSA stated that, “QCSA is excited to be joining forces with Copart as the Company enters its next phase of growth. Copart has a long-standing focus on the salvage sector and understands our industry. The Kinderhook team fully supported the Company’s growth strategy through both organic growth and strategic acquisitions. Our partnership with Kinderhook has been pivotal in getting QCSA to this important day.”
“The sale of QCSA demonstrates Kinderhook’s investment strategy of partnering with strong management teams and building successful companies that attract strategic buyers”, said Cor Carruthers, Managing Director at Kinderhook. “The employees and management team of QCSA have built an agile organization which provides high quality service to its customers. We are confident that the QCSA team together with Copart will continue to build on that legacy.”
Three Oceans Partners served as the exclusive financial advisor. Kirkland & Ellis LLP served as legal counsel to QCSA Holdings, Inc.
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 with transaction values of $25-$100 million 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. For more information please visit: www.kinderhook.com
QCSA Holdings, Inc., through its brands, QCSA Direct, Crashed Toys and DVAA, is a leading remarketer of vehicles including commercial and industrial vehicles, cars, trucks, motorcycles, ATVs, RVs, boats and personal watercraft in the U.S. QCSA Direct is a leading provider of salvage vehicle auction and related services in the U.S. Salvage auctions act as an intermediary between salvage vehicle suppliers (primarily insurance companies) and salvage vehicle buyers (recyclers, dismantlers, rebuilders, scrap metal producers, etc.). Crashed Toys is the preeminent “specialty” internet salvage auction in the industry. Crashed Toys specializes in salvaged motorcycles, boats, recreational vehicles and powersports equipment. DVAA is a leading independent wholesale auto auction in California which specializes in serving the needs of charities in the auto donation industry. QCSA Holdings, Inc. is currently one of the nation’s largest salvage vehicle remarketing companies with over 80 locations nationally. For more information, please visit: www.qcsa.com .
About Copart, Inc.
Copart, founded in 1982, provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and, in some states, to end users. Copart remarkets the vehicles through Internet sales utilizing its patented VB2 technology. Copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships and others as well as cars sourced from the general public. The company currently operates 203 facilities; with operations in the United States and Canada (www.copart.com), the United Kingdom (www.copart.co.uk), Brazil (www.copart.com.br), Germany (www.copart.de) and the United Arab Emirates (www.copart.ae). Copart links sellers to more than 750,000 members in over 140 countries worldwide through our online multi-channel platform.
For additional information about this transaction, please contact:
Cor Carruthers Paul Cifelli
Managing Director Managing Director
+1 (212) 201-6799 +1 (212) 201-6797