LOS ANGELES, CA – Platinum Equity announced today that it has acquired a majority interest in Keystone Automotive Holdings, Inc., the parent company of Keystone Automotive Operations, Inc. (“Keystone”), and will work with the company’s management team on an operational plan to improve Keystone’s ability to compete in the specialty aftermarket auto parts industry.
Platinum was previously Keystone’s largest bond holder and worked closely with Keystone and the company’s other debt holders to develop and execute a recapitalization plan that resulted in Platinum becoming the majority owner of the business.
Platinum achieved its majority ownership position through an exchange offer that closed on March 29, 2011 in which Platinum and other bond holders converted debt to equity and acquired additional common stock through a rights offering.
“Keystone has a strong management team, dedicated employees and an unparalleled distribution network,” said Jacob Kotzubei, partner, Platinum Equity, who led the team pursuing the Keystone acquisition. “With a restructured balance sheet, ample liquidity and the added support of Platinum’s operations team and M&A resources, Keystone is now well positioned for growth and long-term success.” Ed Orzetti, Keystone CEO since 2006, will continue to lead the company under Platinum Equity’s ownership.
“Partnering with Platinum Equity and successfully recapitalizing our business is great news for Keystone’s customers, suppliers and employees,” said Mr. Orzetti. “We will continue offering the most comprehensive inventory selection in our industry, the highest levels of customer service, and the innovative marketing support our partners expect and deserve.”
Platinum has already deployed a team to work with Keystone on a plan to improve overall business performance. Mr. Kotzubei said that Platinum’s M&A resources will actively support Keystone going forward as well.
“We will work closely with Keystone to identify and pursue opportunities to grow the business organically and through additional acquisitions,” said Mr. Kotzubei.
About Platinum Equity
Platinum Equity is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed over 115 acquisitions.
About Keystone Automotive
Keystone Automotive Operations Inc. and its affiliates are wholesale distributors and retailers of aftermarket automotive accessories and equipment, with operations servicing customers in all regions of the United States and provinces of Canada, as well as various other international locations. The Company’s fleet of over 300 trucks provide multi-day per week delivery and returns covering the 48 contiguous states and nine provinces of Canada. The Company sells and distributes specialty automotive products, such as light truck/SUV accessories, car accessories and trim items, specialty wheels, tires and suspension parts, and high performance products to a fragmented base of approximately 15,000 customers. The Company’s wholesale operations include an electronic service strategy providing customers the ability to view inventory and place orders via its proprietary electronic catalog. The Company also operates 20 retail stores in Pennsylvania. The Company’s corporate headquarters is in Exeter, Pennsylvania.