Private equity firm buys majority share of truck accessory maker

Dustin Walsh, CRAIN'S DETROIT BUSINESS

Published: July 31, 2014 10:30 am ET
Updated: August 1, 2014 2:37 pm ET

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Topics Mergers & Acquisitions Automotive Automotive parts
Companies & Associations

A majority share of Ann Arbor, Mich.-based truck accessory manufacturer Tectum Holdings Inc. has been acquired by Boston-based private equity firm TA Associates Management LP.

Terms of the deal were not disclosed.

TA acquired the stake from New York private equity firm Kinderhook Industries LLC, which formed the manufacturer in 2007 by merging its assets, Ann Arbor-based Extang Corp. and Yankton, S.D.-based Truxedo Inc.

Kinderhook will maintain a minority interest in THI and seats on its board of directors, TA Associates said in a press release. Kinderkook said its THI stake translated into a $300 million return on investment.   

Since 2007, THI has increased revenue by more than 600 percent and completed seven acquisitions, including San Fernando, Calif.-based Laurmark Enterprises Inc., dba BAK Industries, in March. The company makes truck bed liners, among other accessories.

THI’s other holdings include: Rogersville, Mo.-based UnderCover Inc.; Ann Arbor-based Advantage Truck Accessories Inc.; Grand Forks, N.D.-based Retrax Holdings LLC; and Old Hickory, Tenn.-based BedRug Inc.

“THI has been growing organically much faster than the overall market, with impressive profitability,” Jeffrey Barber, managing director at TA Associates who will also join THI’s board of directors, said in a statement. “Among the industry’s growth drivers are new truck sales and a high penetration rate of tonneau cover sales for new and used vehicles, driven in part by product innovation. We anticipate that THI’s addressable market will provide for steady growth in the years ahead.”


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Private equity firm buys majority share of truck accessory maker

Dustin Walsh, CRAIN'S DETROIT BUSINESS

Published: July 31, 2014 10:30 am ET
Updated: August 1, 2014 2:37 pm ET

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