Confluence Advisors, LLC (“Confluence”) served as the exclusive advisor to management and investors in their acquisition of Automotive Systems Warehouse, LLC (“ASW” or the “Company”). Tecum Capital (“Tecum”), Siguler Guff & Company, Centerfield Capital Partners, and UMB Family Wealth provided subordinated debt and equity and partnered with local investors (collectively, the “Investor Group”) and ASW’s senior management team to acquire the Company. 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 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.
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.”
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.”
First Commonwealth Bank, based in Indiana, Pennsylvania, provided senior debt financing. Three Pittsburgh law offices provided transaction advisory services — Clark Hill and Metz Lewis worked with the Investor Group and Houston Harbaugh represented ASW.
The deal was Confluence’s fifth in the fourth quarter, all of which involved advising Pittsburgh companies.
About Confluence Advisors, LLC
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.