SCP acquires Alloy wheel repair specialists
- November 17, 2015
- Posted by: Simon Wait
- Category: Industry News
Soundcore Capital Partners, a control-oriented, New York-based private equity firm that invests in lower middle market businesses, today announced that it has completed the acquisition of Alloy Wheel Repair Specialists, the world’s largest full-service alloy wheel repair and replacement company.
This marks the first platform investment since the firms launch in April, 2015. Terms of the private transaction were not disclosed.
Norcross, founded in 2001, provides on-site repair of cosmetic damage to alloy wheel cores, off-site remanufacturing of structurally damaged wheels, and OEM replacement parts through a strong retail network. The Company and its franchisees currently operate in 47 U.S. states and 15 countries, servicing more than 8,000 auto dealerships, collision shops, tire store accounts, rental car agencies, auctions and automotive centres, as well as retail consumers. Today, wheel repair is among the fastest-growing sub-sectors within the auto-reconditioning market, accounting for more than $750 million in annual revenues in the US alone.
‘We are very excited to announce Alloy Wheel Repair Specialists as Soundcore’s first-ever platform investment,” said Jarrett Turner, managing partner of Soundcore. ‘Alloy is perfectly aligned with our focus on founder- and family-owned businesses in fragmented industries, with stable, recurring revenue, where we can drive growth through accretive add-on acquisitions and operational improvements. Tom has built a market-leading company and we look forward to accelerating Alloy’s growth.’
On closing of the transaction, Alloy Founder Tom Morris stepped down from his leadership role and Rob Wheeley, one of the company’s franchisees, has been appointed as CEO. Morris will retain a minority stake in the business and joins the board of directors. Two well-known industry veterans, Ken Walker and Bill Lasky have also joined the Alloy Board.
Walker was formerly CEO of Meineke Car Care Centers, Driven Brands, Parts, Inc., and Cardis Corp., and is a past Vice Chairman of AAA and past Chairman of the International Franchise Association. Lasky, a Soundcore Operating Partner has been appointed Chairman of Board. He has more than 40 years of experience in the auto industry including senior executive or Board positions at Stoneridge, Inc., Accuride Corporation and Affinia Group, Inc.
‘I am very fortunate to be stepping into a great situation at Alloy,’ said Wheeley. “There is a tremendous opportunity for Alloy to grow organically and through strategic acquisitions. With Soundcore’s resources and the experience that Ken Walker and Bill Lasky bring, we have a huge advantage to make investments in the business that really matter, enhance our operational execution, and really outpace the competition.”
‘Finding the right owner, who respected the company and the people who built it, and who would responsibly guide it into its next stage of evolution was very important to me,’ said Morris. ‘Jarrett and the Soundcore team were incredibly transparent and acted with integrity throughout our discussions, so I am very happy to hand them the keys and am eager to work alongside them as Alloy grows and continues to lead the wheel repair industry.’