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Tuesday, 21 February 2017

Performance Motorsports International

PMI (Wiseco, ProX, JE Piston) sold for $150m

Dover Corporation has sold its Performance Motorsports International (PMI) division - owner of the likes of Wiseco, ProX Racing and JE Piston - to New York based private investor Kinderhook Industries, a diversified portfolio equity investor with around $2Bn. of capital under management.

A new holding company – Race Winning Brands (RWB) – has been formed to trade the former PMI business, headquartered with Wiseco Piston at Mentor, Ohio. The deal is reported as being for some $150m., with Dover retaining a small percentage stake in the new holding company.
Commenting on the transaction, Dover's President and Chief Executive Officer, Robert A. Livingston, said: "This transaction provides the new owner the opportunity to leverage the strong leadership position PMI has built over the years and grow the business.  At the same time, it allows us to focus on our higher growth core markets."

Kinderhook, owner of the likes of NitroFill, Superwinch and Bestop, will install operating partner Brian Reese as CEO of RWB, with former Mr. Gasket CEO (ACCEL etc) Bob Romanelli, also a Kinderhook operating partner, as executive chairman.
Paul Cifelli, the Managing Director of new owner Kinderhook is quoted as saying: “A fundamental tenet of Kinderhook’s investment philosophy is identifying unique investment opportunities where our experience, abilities and network of operating partners can help create value. Race Winning Brands aligns perfectly with this investment philosophy. We are confident that Kinderhook’s proven ‘buy-and-build’ strategy will allow us to expand RWB’s leadership position in the automotive and powersports performance markets.”
Financing for the transaction was provided by a debt syndicate led by Antares Capital, Varagon Capital Partners, Madison Capital and NewStar Financial.