July 24, 2019

Capstone Structures Complex Deal for Three Auto Tier 1s

Capstone Structures Complex Deal for Three Auto Tier 1s Four-Party, Multi-Year Transaction Reveals Path Forward for Companies to Gain Scale and Leverage Through Consolidation SAN JOSE, CA – July 22, 2019 –International auto industry advisor Capstone Financial Group, Inc. and its investment banking subsidiary Mobility Securities, LLC recently completed a complex transaction in which Adell Group Inc., a Texas-based automotive OEM supplier and portfolio company of Kinderhook Industries, LLC, simultaneously acquired three vertically integrated manufacturers and distributors of trim products sold to auto manufacturers through the Original Equipment Service channel . The transaction demonstrates the growing importance of consolidation in the auto supplier sector. “Vertical integration and auto supplier consolidation is inevitable and growing,” said Dan Smith, Capstone’s CEO. “All companies need scale and negotiating power, and the best path for many is vertical integration. We will see more deals involving multiple parties, particularly now that auto sales have declined. To take on these more difficult deals, investment banks will need specialized skill sets involving intimate knowledge of and deep experience in the automotive industry.” The deal was exceptionally complex, involving three suppliers in two countries. It included two asset sales, a stock sale, two currencies, financial statements and documents […]
February 10, 2017

San Jose Mercury News: Staking a claim in the auto industry’s evolving technology

Read Dan’s interview with the San Jose Mercury News about the changes going on in the automotive industry and aftermarket: Staking a claim in the auto industry’s evolving technology