Kinderhook Industries LLC has acquired SCA Performance. The acquisition represents Kinderhook’s 52nd automotive-related transaction. Financial terms of the transaction were not disclosed. Kinderhook is the majority owner of Bestop and its subsidiary brands.
“We have enjoyed building a relationship with Kinderhook throughout this process and are confident this partnership will position SCA to achieve the next phase of its strategic plan,” said Matt McSweeney, president of SCA Performance. “We are excited to see what our new partnership and Kinderhook’s extensive relationships in the automotive industry can do for SCA as we continue investing in brand development and product innovation to accelerate growth.”
Headquartered in Trussville, Alabama, SCA is an OEM-authorized specialty vehicle manufacturer for light-duty trucks. The company receives new vehicles directly from OEMs, adds specialty products and then sells the upfitted vehicles to new truck dealers with a full OEM warranty.
“We are very excited to be partnering with the McSweeney family to build on SCA’s tremendous reputation as the premier name for up-fitting light-duty trucks,” said Tom Tuttle, managing director at Kinderhook. “The combination of the company’s reputation for quality truck up-fits coupled with Kinderhook’s extensive experience and relationships in the truck aftermarket uniquely position this partnership for success.”
SCA Performance was founded in 1979.
“SCA has become a leading SVM and key partner for the leading light-duty truck OEM’s,” said Paul Cifelli, managing director at Kinderhook. “The acquisition of SCA Performance perfectly aligns with Kinderhook’s investment strategy of partnering with world-class management teams to acquire companies who are leaders in their respective niches.”
As part of the transaction, Kinderhook will be adding J. Pearson and John Larson, both Kinderhook Operating Partners, to the board of directors. Larson is currently the CEO of Bestop, and previously held a number of senior management positions at General Motors.
“Mr. Larson will be invaluable as an additional link between SCA’s OEM partners and dealership customers,” according to a news release from Kinderhook.
Pearson successfully built Kinderhook Fund I portfolio company, Carry-On Trailer, into the largest trailer manufacturer in the U.S., eventually culminating in a successful sale to Bain Capital, according to Kinderhook. During his time with Carry-On Trailer, Pearson worked with private equity ownership, recapitalized the business, and aggressively grew Carry-On organically and through acquisition. Going forward, Pearson will be the executive chairman and a key resource aiding SCA with strategic and operational initiatives.
Kirkland & Ellis LLP served as legal counsel to Kinderhook.
Kinderhook Industries is a private investment firm that manages over $2 billion of committed capital. The company has made in excess of 150 investments and follow-on acquisitions since its inception. Kinderhook’s investment philosophy is predicated on matching unique, growth-oriented investment opportunities with exceptional financial expertise and a proprietary network of operating partners.