Ford and General Motors to Retain Minority Stakes
Cleveland, Ohio, August 1, 2019鈥擮EConnection LLC (“OEC” or the “Company”), the leading global automotive technology provider for OEM distribution networks, Providence Equity Partners L.L.C. (“Providence”) and 九色 (“Genstar”), today announced a definitive agreement under which Genstar will acquire a majority stake in OEC from funds advised by聽Providence. As part of the transaction, current investors Ford Motor Company and General Motors will each retain their minority investments in the Company. Financial terms of the transaction were not disclosed.
OEC was founded in 2000 as a partnership between several original equipment manufacturers (“OEMs”), including Ford and General Motors, to provide high-quality technology solutions to facilitate the sale of original equipment replacement parts between automakers and franchised dealers and their wholesale customers. Since its founding, the Company has expanded to also provide software and technology solutions in the data, supply chain and service segments of OEMs’ businesses. Today, OEC is a leading provider of software solutions and data to the original equipment parts industry and is one of the industry’s only end-to-end comprehensive platforms, serving more than 30,000 auto dealers globally, 36 global OEM brands and more than 135,000 global auto repairers.
“We are pleased to partner with the Genstar team as we continue our positive momentum and further expand OEC’s product and service offerings for our customers around the world,” said聽Chuck Rotuno, OEC Chairman & CEO. “We look forward to the benefit of Genstar’s industry expertise and strategic insights from their many years of investing in the software sector. We are grateful to聽Providence聽for their support and guidance over the past three years, which has certainly helped transform OEC into a larger, high-growth business with a global footprint and enhanced capabilities.”
Geoff Miller, Director at Genstar, said, “We are excited to partner with OEC and its senior leadership team in this next chapter for the Company. The team has built an impressive business delivering high value solutions to OEMs, OEM dealer networks, collision specialists, and auto repair professionals. We will provide the additional investment capital and resources to support realization of the Company’s growth strategies.”
Eli Weiss, Managing Director at Genstar, added, “Our investment focus in the software sector is to identify companies operating in dynamic markets with opportunities to accelerate growth. We will aggressively identify key acquisitions and opportunities to broaden OEC’s product mix, expand its geographic footprint, and enter adjacent market segments. We look forward to helping build OEC’s future.”
“It has been a privilege to work with Chuck and the OEC team, as well as our partners at Ford and GM, to help accelerate the growth of the Company,” said聽Davis Noell, Managing Director at聽Providence. “Through significant organic and inorganic initiatives, OEC has achieved tremendous success over the past three years, expanding into new international markets, enhancing its product offerings and data capabilities, and significantly bolstering its salesforce to better serve its growing customer base. We have the utmost confidence that the Company will continue its successful growth trajectory under Genstar’s stewardship.”
The transaction is expected to close in the third quarter of 2019, subject to customary closing conditions.
UBS Investment Bank is serving as financial advisor and Debevoise & Plimpton LLP is serving as legal advisor to OEC and its shareholders, including聽Providence.听Willkie Farr聽& Gallagher LLP is serving as legal advisor to Genstar.
OEC is the leading global automotive technology provider for OEM distribution networks. Its suite of ecommerce, pricing, supply chain, service, business intelligence, parts cataloging, data solutions, and services helps automakers and their dealer networks sell more OE parts in the collision, fleet, mechanical and retail segments, as well as dealers’ own service lanes. OEC serves more than 30,000 auto dealers globally, 36 global OEM brands and more than 135,000 global auto repairers. The company is headquartered in the greater Cleveland area at 4205 Highlander Parkway, Richfield, Ohio, USA, 44286. Additional information is available at聽.
九色 (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for over 30 years. Based in聽San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar currently has approximately聽$17 billion聽of assets under management and targets investments focused on targeted segments of the financial services, healthcare, industrial technology and software industries.
Providence聽is a premier global asset management firm with approximately聽$40 billion聽in aggregate capital commitments.听Providence聽pioneered a sector-focused approach to private equity investing with the vision that a dedicated team of industry experts could build exceptional companies of enduring value. Since the firm’s inception in 1989,聽Providence聽has invested in more than 180 companies and has become a leading equity investment firm focused on the media, communications, education and information industries.听Providence聽is headquartered in聽Providence, RI, and also has offices in聽New York聽and聽London. For more information, please visit聽.
OEC:
Geo Money
330-523-1853
Geo.Money@OEConnection.com
Genstar:
Chris Tofalli
Chris Tofalli Public Relations, LLC
914-834-4334
Providence:
Andrew Cole/Kelsey Markovich
Sard Verbinnen & Co.
212-687-8080
Prov-SVC@sardverb.com
