AP Emissions Technologies and Centric Parts have announced an agreement to combine, forming a leading player in the undercar automotive aftermarket.
AP and Centric will offer a comprehensive product portfolio including full line exhaust, friction and brakes, and chassis products to traditional warehouse distributors, feeders, retailers, and performance and specialty channels. The combination will build on the customer service, support and first-to-market product availability that AP and Centric provide.
Hugh Charvat will lead the combined business as Chief Executive Officer. Dan Lelchuk, who co-founded Centric Parts in 2000, will remain President of Centric Parts.
“This event is truly transformational for AP and Centric and will benefit our customers, employees, and suppliers as the combination of AP and Centric will provide one of the broadest undercar offerings in the market. This merger will help accelerate our growth by providing a true one-stop-shop experience for our customers,” said Lelchuk.
“The combined AP Centric platform creates an outstanding foundation for continued growth by leveraging the strengths of both businesses. While never losing focus on core customers and markets, this merger creates the opportunity for further acquisitions in the undercar aftermarket to provide a comprehensive and expanding product offering to the industry. I am looking forward to working with Dan and the rest of the talented Centric team to continue delivering exceptional service to our customers,” added Charvat.
Harvest Partners, a leading private equity firm with experience in the automotive aftermarket industry, will provide equity capital, in partnership with Audax Private Equity, an existing investor in both AP and Centric, and management to fund the combination.
Jefferies served as financial advisor to AP, and Lazard and Angle Advisors served as financial advisors to Centric. Kirkland & Ellis provided legal counsel to AP and Centric. White & Case served as legal counsel to Harvest. The transaction is expected to close within the next 45 to 60 days. Terms of the agreement were not disclosed.
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