Pittsburgh, Pennsylvania – Tecum Capital (“Tecum”) is proud to announce its investment in Automotive Systems Warehouse, LLC (“ASW” or the “Company”), a wholesale warehouse distributor of automotive paint, body, and equipment products. The investment represents Tecum’s first platform investment out of its new $300 million SBIC fund, Tecum Capital Partners III, L.P. Tecum led a group of highly respected co-investors including Siguler Guff & Company, LP, Centerfield Capital Partners, and UMB Family Wealth to provide subordinated debt and equity and partnered with local investors (collectively, the “Investor Group”) and ASW’s senior management team to acquire the Company. Confluence Advisors served as the exclusive financial advisor to the Investor Group. ASW’s senior management team is led by CEO Rodney King, who will continue to run the Company with a focus on growth while providing industry-leading customer service. The financial terms of the transaction were not disclosed.
Founded in 1978 and headquartered in Pittsburgh, PA, ASW is a wholesale warehouse distributor of automotive allied products to the collision repair value chain. The Company, through its five (5) strategically located warehouses, consolidates 300+ core vendors to offer tens of thousands of unique products, including key automotive product categories such as paint & coatings, abrasives, tools & equipment, tape, painting cups & filters, and primer. ASW is recognized as a market leader in the distribution of collision repair products by offering valued customer service, wide geographic coverage, and a comprehensive product offering.
Tecum and Confluence are both Pittsburgh-based, and the local nature of the deal is further underscored with additional Pittsburgh-based partners involved, including support from First Commonwealth Bank, and transaction advisory services provided by Clark Hill, Metz Lewis, and Houston Harbaugh.
Bob Van Kirk, who founded and has owned and operated ASW since its founding, noted, “I am excited to bring in partners whose values align with what we have built for over 40 years.” Rodney King, added, “The capital and expertise that the Investor Group brings to our business will allow us to capitalize on our many growth opportunities while maintaining the customer-focused culture that has made us who we are today.” With the financial and operational support of the Investor Group, the Company expects to execute on key strategic priorities, including geographic expansion, private label product development, expanded inventory availability, and opportunistic acquisitions.
Confluence Partner Walt Rausch commented, “Bob and Rodney and their team have built an industry-leading business. We are excited to have worked with the management team and the Investor Group to help facilitate the next phase of growth for the Company. We have the utmost respect for Tecum and have had multiple successful outcomes with them in the past.”
Stephen Gurgovits, Jr., Managing Partner of Tecum, added, “We couldn’t be any happier with our first investment in Tecum Capital’s Fund III. It is an investment with a strong management team, in a sector that we are bullish on as we emerge from COVID, and with an Investor Group aligned with our values in a “backyard” deal. There is strong cultural alignment across the Investor Group and ASW as we collectively work to progress the Company through its next phase of growth.”
The Deal Team from Tecum consisted of Stephen Gurgovits, Jr., Dave Bonvenuto, Sean Edmonson, and Paul Oris.
First Commonwealth Bank provided senior debt financing. Clark Hill and Metz Lewis provided legal services to the Investor Group. ASW was represented by Houston Harbaugh.
ABOUT TECUM CAPITAL
Tecum Capital Management, Inc. (“Tecum”) is a Pittsburgh, Pennsylvania based private investment firm deploying capital in lower middle market companies. Tecum provides mezzanine debt and equity investments in growth-oriented middle market companies across many industries, including manufacturing, value-added distribution, and business services. Our team partners with independent sponsors, family offices, committed funds, business owners seeking succession plans, and management teams to create shared success. Tecum focuses on businesses with EBITDA greater than $3 million and will invest $5 million to $20 million in potential portfolio companies. Tecum manages two Small Business Investment Company (“SBIC”) licensed funds and is currently investing out of Tecum Capital Partners III, L.P, a $300 million fund launched in September 2021. Since 2006, the team has collectively invested more than $750 million in over 100 platform and add-on acquisitions. For more information, please visit www.tecum.com.
ABOUT CONFLUENCE ADVISORS
Confluence Advisors helps business owners maximize the sale of a business, raise optimal funding, or acquire a business. With over 80 years of combined deal experience and more than $2 billion in transactions, the Confluence team works every day to help companies and their stakeholders through critical business transitions.
ABOUT SIGULER GUFF & COMPANY, LP
Siguler Guff & Company, LP is a leading global multi-strategy private markets investment firm which, together with its affiliates, has over $15 billion of assets under management, as of September 30, 2021, and over 25 years of investment experience. Siguler Guff seeks to generate strong, risk-adjusted returns by focusing opportunistically on market niches. Siguler Guff’s core investment strategies include opportunistic and private credit, small business private equity, distressed real estate and emerging markets. Siguler Guff’s investment products include direct investment funds, multi-manager funds and customized separate accounts. Founded in 1991 and headquartered in New York, Siguler Guff maintains offices in Boston, London, Moscow, Mumbai, São Paulo, Shanghai, Seoul, Tokyo, Hong Kong and Houston, TX. To learn more about Siguler Guff, please visit www.sigulerguff.com.
ABOUT CENTERFIELD CAPITAL PARTNERS
Founded in 1998 and located in Indianapolis, Centerfield Capital Partners is a national provider of junior capital to lower middle market companies. Centerfield invests alongside equity sponsors, independent sponsors, business owners, and management teams who seek subordinated debt and equity financing to transform businesses and create value. The firm provides tailored financing solutions to effect leveraged buyouts, recapitalizations, acquisitions, and growth. Centerfield has invested in 100+ companies across a variety of industry sectors, and is currently investing its fourth fund with commitments of $335 million.
ABOUT UMB FAMILY WEALTH
UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank.
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