MUSKEGON — American Grease Stick Co. of Muskegon was acquired last year by 3 Rivers Capital, a Pittsburgh, Pa.-based private equity firm.
A manufacturer of branded automotive fluid transfer lines and related products for the automotive aftermarket industry, AGS has operations in Muskegon and the U.K. The company, which was founded in 1931, sells products through a variety of aftermarket retailers, including Advanced Auto Parts, AutoZone and Pep Boys, according to a statement.
3 Rivers purchased the company for $10 million from the Rosen family, according to a report in the Pittsburgh Business Times.
The deal was backed by $9.75 million in subordinated debt and an equity co-investment from PNC Mezzanine Capital.
3 Rivers Capital described the deal as partnering with the company’s current management to grow the company and develop new markets and products. The PE firm typically works with lower middle market firms and specializes in controlled buyouts or recapitalizations of small private companies. 3 Rivers Capital specializes in acquiring family-owned companies and corporate orphans, or as in the case of AGS, working with an experienced management team.
AGS worked with the PE firm “to develop a strategic plan that focuses on new product development, organic growth, and contemplating complementary strategic acquisitions in the automotive aftermarket,” stated President Logan Pitts.
In addition to PNC Mezzanine Capital, JP Morgan Chase provided debt financing for the transaction. Metz Lewis Brodman Must O’Keefe LLC of Pittsburgh served as legal counsel to 3 Rivers Capital.
The sellers worked with investment banker Stout Risius Ross Inc. of Chicago.