Hilton Head, South Carolina, July 14, 2008 — Capstone Financial Group is pleased to announce the completed sale of its client, Xtreme Metal Fab, Inc (“Go Rhino”) to Big Country Truck Accessories (“Big Country”), a subsidiary of Guadalajara, Mexico-based Industria Diseñadora De Autopartes (“IDDEA”). Go Rhino is a Brea, CA-based manufacturer of metal fabricated aftermarket accessories for light trucks and sport utility vehicles which include products for public safety and soft-sided cargo management products.

Manuel Alvarez, President of IDDEA, provided his thoughts on the transaction, “Go Rhino’s strong branding, quality products, and extensive distribution are well recognized in the industry and very appealing to Big Country. Ron Storer and his management team will continue growing the Go Rhino brand and providing their significant product development experience. We believe this is not only a win-win situation for Go Rhino and Big Country, but will benefit our suppliers, vendors and customers.”

Transaction Details

Capstone was contacted by Go Rhino last year to discuss strategic alternatives which would allow for a divestiture of the founding shareholders’ interest while keeping the company’s talented professional management team intact. Due to the heightened interest in the auto aftermarket industry, Capstone entertained several bids for the purchase of Go Rhino from a variety of prospective purchasers, both financial and strategic. Big Country emerged as the winning bidder during final rounds of negotiations and subsequently completed a purchase of substantially all of Go Rhino’s assets.

This transaction is further evidence of the resiliency of auto aftermarket M&A, which has experienced a record number of transactions through the first half of 2008. Capstone’s president, Dan Smith, emphasized the significance of the transaction. “In a challenging economic environment, we’re seeing strategic buyers consolidating as a means of growing revenue and utilizing synergies to decrease expenses. Consolidation is occurring across borders and every auto aftermarket segment – performance parts, chemicals, appearance products, and certainly truck accessories,” Smith stated.

About Go Rhino
(www.gorhino.com)

Go Rhino is a recognized leader in truck and public safety vehicle accessories. The Company’s products include approximately 1,500 SKUs of grill guards, steps, side bars, hitch steps, public safety equipment, racks, and garage organizers. These products serve both functional and aesthetic purposes. Founded in 1977, Go Rhino’s innovative product design has led to the issuance of over 20 patents worldwide. Additionally, the Company has received numerous industry awards, the most recent being two “Best New Product” awards at the 2007 SEMA (Specialty Equipment Market Association) Show for its introduction of the patented Step-N-Tow® line of hitch steps.

 

About Big Country/IDDEA
(www.bigcountryauto.com)

Founded in 1965, IDDEA is an ISO 9001-2000 certified manufacturer of parts for OE and private label customers. IDDEA now offers its own line of automotive accessories under the Big Country brand. Big Country specializes in designing, fabricating, electroplating, marketing and distributing auto parts and truck accessories as well as heavy duty truck accessories. Utilizing state-of-the-art design software, lean manufacturing methods and sophisticated inventory control systems, the Big Country brand is gaining market share worldwide among customers requiring consistent quality, high fill rates and short lead times.

 

About Capstone Financial Group
(www.capfg.com)

Capstone is an investment banking firm which provides financial advisory services to private middle-market companies.  The firm's services include mergers and acquisitions, distressed advisory and restructuring, valuations and fairness opinions, and private placements of debt and equity. The firm was founded in 1988 and operates from its offices in Hilton Head, SC and Detroit , MI .

 

For more information about this transaction, please contact:

Graham Payne ( gpayne@capfg.com )
Capstone Financial Group
T (843) 689-6450
F (843) 681-5938