Transaction Description
- Hennepin Partners represented US Tarp, a portfolio company of Brighton Partners, on its sale to Shur-Co, a portfolio company of Behrman Capital.
- The Company is a leading manufacturer and distributor of load containment and cargo protection truck and trailer tarping systems and related aftermarket parts.
- US Tarp’s products are used on commercial light-duty trailers, medium-duty trucks, heavy-duty tractor-trailers, dump trucks, and roll-off container handling equipment.
- The Company is headquartered in South Haven, Michigan with a distribution center in Salt Lake City, Utah.
Key Observations
- During Brighton Partners’ investment period, US Tarp CEO Tom Bronz and his team accomplished a long list of sales, product development, and operational improvements that transformed the Company into a market leader.
- US Tarp brings highly complementary product lines, augmenting Shur-Co’s cargo covering offerings, and providing a natural growth opportunity for the Shur-Co business.
- The companies had overlapping markets and similar customer bases, presenting a great opportunity for Shur-Co to continue expanding, backed not only by US Tarp’s current offerings, but also the strength of the innovative engineering and development teams and US Tarp’s service-oriented business model.
Drivers of Interest
- Comprehensive line of systems and parts provided a one-stop shop capable of serving any transportation application, OEM truck or trailer, or tarping MRO need.
- Non-discretionary products with attractive replacement and recurring demand dynamics.
- Unique ability to address aftermarket needs for its own and competitors’ tarping systems.
- Balanced channel mix of specialty OEM customers and aftermarket distributors.
- Diverse, sought-after end markets including construction & landscaping, agricultural, municipal, and recycling & refuse.
- Best-in-class, value-added service model.
- Led by a strong, accomplished and growth-oriented management team.
- Impressive financial profile with consistent growth progression.
- Multiple avenues for growth with its distributor and OEM relationships, new product development, and development of dealer services locations.
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