Superior Buys Into Aftermarket Controls

Superior Capital Partners has acquired Laurinburg, N.C.-based Rostra Precision Controls, and also sponsored recaps of Wixom, Mich.-based OEM Components and USA Switch. No pricing terms were disclosed for the deals, which included leveraged financing arranged by Bank of Montreal.



Superior Capital Partners LLC, a Detroit-based private equity firm, announced today that it has partnered with Thomas P. Petrillo to form Aftermarket Controls Holdings Corp., an investment platform that was created to recapitalize Wixom, Michigan-based OEM Components and USA Switch and to acquire Laurinburg, North Carolina-based Rostra Precision Controls. Mr. Petrillo founded OEM Components and USA Switch and will lead the combined companies as CEO. The purchase prices were not disclosed. Bank of Montreal arranged the senior and subordinated debt financing to facilitate the transactions.

OEM Components and USA Switch are value-added distributors of electronic transmission and engine-management components, including solenoids, sensors, switches and wire harnesses to the automotive aftermarket. Rostra Precision Controls is a manufacturer and distributor of electronic transmission components and wire harnesses. In addition to manufacturing a portfolio of electronic transmission products, Rostra engineers and manufactures cruise controls, rear-view cameras and obstacle sensing devices that are generally installed at automotive dealerships.

Mark Carroll, Superior's managing partner, commented, “These companies fit squarely in Superior's investment criteria and together represent a compelling combination of assets with defensible market positions that target growing segments of the automotive aftermarket.” Mr. Petrillo also commented, “We are extremely enthusiastic about the value that can be created by combining the deep commercial understanding of the OEM Components and USA Switch management team with the world-class engineering and manufacturing capabilities of Rostra.”

The strategy of Superior is to combine capital, transaction experience and operational improvement expertise with proven management teams who have the vision, capability and commitment to successfully improve and grow their businesses. Superior seeks to acquire or recapitalize niche manufacturers, value-added distributors and specialty service companies. Generally, these companies will have annual revenues of up to $200 million, hold strong market positions and have identifiable growth opportunities.