Spring is upon us and summer is right around the corner, which means Americans will start getting their cars ready for road trips.
Auto part makers and service providers have always been in demand and provided steady stream of deals in the middle market.
For example, Tenneco Inc. (NYSE: TEN) agreed to buy car parts manufacturer Federal Mogul from Carl Icahn. The deal marks the latest shift in the industry that’s reorganizing as automakers prepare for an era of battery-powered and eventually driverless vehicles.
“Icahn Enterprises acquired majority control of Federal-Mogul in 2008 when we saw an out-of-favor market opportunity for a great company. During that time, we have built one of the leading global suppliers of automotive products,” says Icahn.
On the private equity side, CenterOak Partners LLC has formed a new operating company called TruRoad Holdings Inc. through the investments of JN Phillips Auto Glass and Techna Glass Inc. The PE firm formed TruRoad with capital raised from its initial $420 million fund.
TruRoad will focus on two segments: auto glass repair and insurance claim services. The company will operate under the JN Phillips Auto Glass, Techna Glass, Windshield Centers, and Harmon Auto Glass brands. TruRoad will serve consumers, insurance companies and fleet operators, and will have offices in Woburn, Massachusetts, Burlington, Massachusetts, and Sandy, Utah.
“We are excited to create TruRoad and be a part of a transformational transaction in the on-demand auto-service and claims management industry and invest alongside the management teams of these two great companies,” says CenterOak managing partner Randall Fojtasek.
View our slideshow for a roundup of auto parts deals.
Carl Icahn is selling car-parts maker Federal-Mogul to competitor Tenneco. After the deal is completed, Tenneco will divide itself into two publicly traded companies, with one specializing in powertrain technology and the other in auto parts. The sale marks the latest shift in a car-parts industry that’s reorganizing, as automakers prepare for an era of battery-powered and eventually driverless vehicles.
CenterOak Partners LLC has formed a new operating company called TruRoad Holdings Inc. through the investments of JN Phillips Auto Glass and Techna Glass Inc. TruRoad will focus on two segments: auto glass repair and insurance claim services. The company will operate under the JN Phillips Auto Glass, Techna Glass, Windshield Centers, and Harmon Auto Glass brands.
Altra Industrial Motion
Altra Industrial Motion, a maker of industrial clutches and brakes, is acquiring four operating companies from the Automation and specialty platform of Fortive. The quartet produces motion control hardware and software, electric motors and engine braking technology under brand names including: Kollmorgen, Thomson, Portescap, and Jacobs Vehicle Systems.
Adient acquired Futuris Global Holdings, a manufacturer of automotive seats, for $360 million from lower middle-market private equity firm Clearlake Capital Group. The Oak Park, Michigan-based target supplies the auto manufacturing sector with seating systems, seat hardware, carpet systems, steering assemblies, pedal box modules, window regulators, and other automotive mechanisms.
Wabash National bought Supreme Industries, a supplier of commercial vehicles and related components, for approximately $364 million. The deal is intended to advance Wabash National into the final mile, or the last leg, of the delivery process. Supreme is a U.S. manufacturer of light and medium-duty truck bodies.
Clearlake Capital Group has acquired Wheel Pros Holdings LLC. The Denver-based target makes and sells wheels and tires to more than 10,000 retailers out of 33 distribution centers. Wheel Pros owns 12 brands including American Racing, Asanti and Helo. "Custom wheels continue to be one of the most visible ways to personalize a vehicle, and our customers use it as an opportunity to express their personality," say Wheel Pros co-founders Jody Groce and Randy White.
Intel and Delphi
Intel bought Israel’s Mobileye for $15 billion, its second-biggest acquisition and a bold attempt to dominate technology for self-driving cars. In another deal, Delphi paid $450 million for nuTonomy.
Canadian automotive retailer AutoCanada has acquired 15 stores from the Grossinger Auto Group. The transaction is the largest acquisition to date of a U.S. dealership group by an international buyer.
Woodward bought diesel parts maker L'Orange from Rolls-Royce. With the acquisition, Woodward will become one of the leading technology providers of engine control systems for industrial engines.