Houlihan Lokey is pleased to announce that Service Champ, Inc., a portfolio company of Snow Phipps Group, has been acquired by Highline Aftermarket Acquisition, LLC, a portfolio company of The Sterling Group. The transaction closed on March 17, 2017. Houlihan Lokey served as the exclusive financial advisor to Service Champ and assisted in initiating, structuring, and negotiating the transaction on its behalf.
Service Champ is the largest specialty distributor of consumable automotive aftermarket maintenance parts and accessories to quick lube, general repair, and car wash shops. The company distributes more than 4,500 different products, including oil and air filters, wiper blades, chemicals, and tools to customers in the United States and Canada. In addition to carrying the industry's leading brands, Service Champ generates over half of its revenue from company branded products, which are recognized and respected by customers for quality and reliability. The company's customer-centric business model delivers best-in-class customer service, technical expertise, a broad portfolio of SKUs and the industry's only one- to two-day delivery capability. Service Champ was founded in 1984 and is based in Chalfont, Pa.
Snow Phipps is a private equity firm focused on middle-market control investments, targeting platform companies with enterprise values ranging from $100 million to $500 million. The firm utilizes an operating partner model to invest across the industrials, services, and consumer industries, and seeks value creation through an operationally focused strategy. Snow Phipps is headquartered in New York City.
Highline is a manufacturer and distributor of packaged automotive chemicals, lubricants, and parts, which it sells to independent distributors, quick lube shops, jobbers, and multiple retail channels. The company was formed in 2016 through the simultaneous acquisition of two legacy businesses (DYK Automotive and Auto Aftermarket Holdings Corp.), and is headquartered in Memphis, Tenn.
Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution, and industrial services companies. Sterling has sponsored the buyout of 50 platform companies and numerous add-on acquisitions for a total transaction value of over $10 billion. Sterling has over $2.2 billion of assets under management.
Houlihan Lokey's Industrial Distribution team has earned a reputation for working with premier distribution clients, providing superior client service, and delivering outstanding results. This transaction highlights our success advising and deep sector expertise in automotive and aftermarket components-related businesses, and demonstrates our ability to maximize value and certainty for our clients through thoughtful positioning and a tailored M&A sale process.