Capstone Financial Group, an investment banking firm specializing in the auto aftermarket, has announced the sale of Morris 4×4 Center (“Morris”) of Pompano Beach, FL, one of North America’s leading Internet retailers of Jeep-only parts and accessories.
Morris pioneered the consumer-direct Jeep Internet business with a significant head start over brick and mortar retailers and now sells more than 46,000 SKUs from hundreds of manufacturers covering every relevant product category for Jeeps.
The company’s acquirer was a platform company backed by a New York-based private equity firm with significant investment experience in the auto aftermarket.
“I chose Capstone because of its industry knowledge and ability to close a synergistic deal with the most appropriate buyer,” said Glenn Morris, the company’s founder and CEO. “This was a complicated transaction for a number of reasons, but Capstone structured a discreet deal at a very attractive price without having to run a complex, time-consuming process.”
Capstone provided key guidance across several aspects of the deal. It epitomized the vertical food-chain type of acquisition that Capstone began predicting in 2007 as the Internet became more prevalent and three-step distributors became more dominant and aggressive.
“This is the auto aftermarket world we live in now,” said Dan Smith, president of Capstone. “Vertical strategic acquisitions are happening across many product categories as both manufacturers and distributors seek to compete with and live peacefully alongside the Amazons of the world. We predict there will be many more such deals in the coming months.”