Automotive Acquisitions in Canada

FFUN Group acquired Key Auto Group, adding four automotive dealerships and a collision and paint centre across Yorkton, Saskatchewan and Swan River, Manitoba. The acquisition expands FFUN Group’s Prairie presence and adds OEM brands including Toyota, Cadillac, GMC, Chevrolet, Buick, and a second Kia dealership to its network.

AutoCanada Inc. (TSX: ACQ) announced it has completed the acquisition of Modern Autobody, a single-location collision and refinish repair facility in Edmonton, Alberta. The deal expands AutoCanada’s collision repair footprint in the Edmonton market and strengthens its premium/luxury and EV OEM certification coverage, with expected operational and revenue synergies.

Fastco Canada, a subsidiary of Groupe Touchette, announced the acquisition of the ENVY wheel brand. Fastco will lead product development and brand positioning for ENVY, while Groupe Touchette will support market deployment and customer service through its national distribution network. The deal expands Fastco’s portfolio and strengthens its presence in the North American aftermarket wheel market, particularly for products designed for Canadian conditions.

CSN Collision, a North American collision repair network, announced a partnership with ONCAP (Onex Corporation’s lower mid-market private equity platform). As part of the transaction, ONCAP is backing CSN to acquire various collision centres from CSN’s founders, who will remain shareholders, supporting the build-out of a scaled platform of corporate-owned collision centers and continued M&A-driven expansion.

Northern Roads Auto Group completed the acquisition of Bill's Toyota, described as Canada's oldest Toyota dealership and a family-owned business operated by the Pasincky family. Performance Brokerage Services Canada advised on the transaction, with Senior Partner Rob Armstrong representing both buyer and seller.

The Richter and Scherle families, through their respective automotive groups (The Richter Group and The Scherle Group), acquired the Terrace Ford Lincoln dealership in Burlington, Ontario from Go Auto. The transaction was facilitated by Performance Brokerage Services. Following the acquisition, the dealership was rebranded and will operate as Lakewest Ford Lincoln.

PGW Auto Glass, LLC has acquired PH Vitres d'Autos and its affiliates from Driven Brands. PH Vitres d'Autos provides wholesale auto glass distribution as well as retail installation, calibration and related services across eastern Canada. The deal expands PGW Auto Glass’s footprint in Canada; PGW Auto Glass is a portfolio company of One Equity Partners.

TorQuest Partners has completed the acquisition of Mevotech L.P., a Toronto-based designer and engineer of driveline, steering, and suspension parts for the automotive aftermarket. The company was acquired from funds managed by Penfund Management Limited, with CEO Ezer Mevorach continuing to lead the business. Financial terms were not disclosed.

Xos, Inc. closed an all-stock acquisition of ElectraMeccanica Vehicles Corp., an electric vehicle designer and assembler, with terms initially announced on January 11, 2024. The transaction is expected to add about $48 million to Xos' balance sheet, and former ElectraMeccanica shareholders received 0.0143739 shares of Xos stock per ElectraMeccanica share, ending up with roughly 21% ownership of Xos. Following closing, ElectraMeccanica was delisted from Nasdaq and Xos obtained 100% ownership and control of ElectraMeccanica’s shares.

The Mufflerman Inc., a portfolio company of Argyle Capital Partners, acquired five automotive repair and tire service locations operating under the EuroMechanic brand umbrella in the Greater Toronto Area and Guelph from Carflex Capital. The transaction closed on November 3, 2023, and EuroMechanic will continue operating as a distinct division within The Mufflerman.

Cloyes Gear & Products, Inc. (Cloyes) acquired Rotomaster, a global turbocharger and component specialist serving diesel and gas-powered applications. The deal expands Cloyes’ automotive aftermarket product offering and customer reach; transaction terms were not disclosed. BMO Capital Markets acted as exclusive financial advisor to Rotomaster and King & Spalding served as legal counsel.

Penske Automotive Group, Inc. acquired Transolutions Truck Centres (TSTC), a medium- and heavy-duty commercial truck and bus dealership group based in Winnipeg, Manitoba, Canada. The acquisition expands Penske’s Premier Truck Group footprint in Canada and is expected to add approximately $180 million in annualized revenue.

On May 17, 2023, High Bar Brands, LLC acquired Dieter’s Accessories, a Canada-based manufacturer of aftermarket and OEM heavy-duty truck parts and stainless-steel accessories. The acquisition adds Dieter’s to High Bar’s portfolio alongside Minimizer, Premier Manufacturing, and Viking Mud Flaps, with the goal of driving growth through OEM relationships and cross-selling. Heartwood Partners, High Bar’s private equity sponsor, highlighted the strategic fit and added steel manufacturing capabilities.

The Mufflerman Inc., a portfolio company of Argyle Capital Partners, acquired Fleet Specialties Inc., with the transaction closing March 31, 2023. Fleet provides maintenance, repair, management and custom upfitting services for commercial fleets, and will operate as a distinct division of The Mufflerman while Fleet’s founders assist during a transition period.

Martinrea International Inc. announced the acquisition of the assets of Montreal-based Effenco Development Inc., a green-tech company focused on electrification and connectivity solutions for heavy-duty vocational trucks. Martinrea expects to leverage its manufacturing and supply chain capabilities to grow Effenco’s heavy-duty hybrid electric technology and support its sustainability and innovation initiatives.

AutoCanada Inc. acquired Kavia Auto Body, a collision centre located in Saskatoon, Saskatchewan. The acquisition supports AutoCanada’s strategy to expand its national collision centre network in markets complementary to its existing dealership footprint.

Safe Fleet Acquisition Corp. (Safe Fleet), a portfolio company of Oak Hill Capital Partners, acquired Kerr Industries Limited and its wholly owned subsidiary Crown North America, providers of specialty vehicle upfitting and conversion services for law enforcement and emergency vehicles. Kerr will expand Safe Fleet’s law-enforcement offering by adding upfit services and broadening its installer and service-center network across the U.S. and Canada. Kerr’s existing leadership team will continue to manage the business following the acquisition.

Burnout Brands, a portfolio company of Hidden Harbor Capital Partners, announced a strategic investment in BD Engine Brake Inc. (BD Diesel). BD Diesel, headquartered in British Columbia, Canada, manufactures and distributes diesel performance aftermarket products including turbochargers and transmissions, with sales across Canada and the United States. The existing owners will retain an ownership stake; transaction terms were not disclosed.

FFUN Group acquired Forest City Mazda, a Mazda dealership in London, Ontario, as part of its expansion into the Ontario automotive market. The dealership was purchased from Palladino Auto Group, with the transaction effective June 16, 2022.

Turnspire Capital Partners completed the acquisition of the assets of Spectra Premium Industries through court-supervised Companies' Creditors Arrangement Act (CCAA) proceedings in Quebec and related Chapter 15 proceedings in the United States. The assets were acquired by a newly formed entity, Spectra Premium Mobility Solutions, LLC, and include Spectra’s U.S. and Canadian assets as well as the stock of its Taiwanese subsidiary. Spectra, headquartered in Boucherville, Quebec, designs, manufactures, and distributes thermal and fluid management products for automotive, heavy-duty truck, and industrial OEM and aftermarket markets.

MiddleGround Capital acquired Plasman Holdings (Plasman), an automotive exterior products and systems supplier, as the third platform investment in MiddleGround’s Mobility Strategy. The business was sold by Insight Equity, which had previously expanded Plasman through acquisitions, capacity projects, and new facilities, positioning it for continued growth under MiddleGround’s ownership.

XPEL, Inc. acquired five businesses in the United States and Canada: Shadow Shield, Shadow Tint, North 1 Technologies (FilmWraps), One Armor, and Tint Net. The combined purchase price was approximately USD $20.1 million (subject to customary adjustments) and the acquisitions closed on October 1, 2021. XPEL funded the transactions with cash on hand and available credit facilities, and expects the deals to add roughly USD $17.0 million in annual revenue on a full-year basis.

Micro Bird Holdings, a joint venture of Blue Bird and Girardin, acquired a controlling interest in GranTuned Automobiles (doing business as Ecotuned), an electric-vehicle drivetrain integrator and supplier focused on light and medium-duty applications. The deal is intended to deepen Micro Bird’s electrification capabilities for Type A school buses and expand deployment of Ecotuned powertrains into additional commercial vehicle segments. Ecotuned’s three founders will remain shareholders and continue to play key roles in the business following the transaction.

Lion Electric closed its previously announced business combination with Northern Genesis Acquisition Corp. (NGA), a SPAC, resulting in Lion becoming a publicly traded company. The transaction (including a concurrent PIPE) delivered approximately US$490 million in proceeds to Lion, which will be used to repay certain debt and fund growth initiatives including expanded U.S. manufacturing capacity and battery development.

Repairify, Inc. d/b/a asTech, a portfolio company of Kinderhook Industries, acquired Root Four Imagination Inc., the company behind the BlueDriver direct-to-consumer aftermarket automotive diagnostic scan tool and related services. The deal is described as asTech’s ninth add-on acquisition, and financing was provided by BBVA USA; financial terms were not disclosed.

Clearlake Capital Group, L.P., in partnership with IXS management, agreed to acquire Innovative XCessories & Services LLC (IXS) from Olympus Partners. Headquartered in Windsor, Ontario, IXS provides coating solutions and vehicle upfit services through its Ground Effects and IXS Coatings divisions, including the LINE-X franchise network. Financial terms were not disclosed and the deal is expected to close in the first quarter of this year.

XPEL, Inc. agreed to acquire Protex Centre, a Montreal-based wholesale paint protection film installation business and the largest franchisee in the Protex Canada network. The transaction is expected to close on February 1, 2020 for approximately CAD$3.25 million, funded with cash on hand and unsecured promissory notes payable to the sellers.

Ironbridge Equity Partners, together with management, acquired the assets of MBRP Inc., which will continue operating as MBRP Ltd. MBRP is a Huntsville, Ontario-based designer and manufacturer of high-performance exhaust systems for automotive and recreational vehicle markets. The investment was made through Ironbridge Equity Partners III, LP.

Gorilla Commercial Vehicle Holdings, Inc. acquired Gorilla Brake Holdings, a leading independent remanufacturer of brake shoes and provider of friction solutions for the North American commercial truck market. Gorilla Brake Holdings is headquartered in Brantford, Ontario, Canada, with additional locations in Dallas, Texas and Salt Lake City, Utah. Angle Advisors served as the exclusive investment banking advisor to Gorilla Brake Holdings on the transaction.

Westbridge Capital Ltd. has acquired KAVIA Auto Body, Inc., an auto-body repair services provider based in Saskatoon, Saskatchewan. KAVIA’s retiring owner and president, Raj Kavia, will remain involved as chairman and will partner with Westbridge as it pursues additional acquisitions in the collision repair sector. Financing for the transaction was arranged by Westbridge Capital Partners Income Trust, a mezzanine debt fund managed by Westbridge.

Autrans Corporation, a wholly owned subsidiary of Japan-based Sojitz Corporation, sold its Ingersoll, Canada value-added assembly operations ("Autrans Ingersoll") to Butcher Engineering Enterprises, Ltd., a holding company of Spencer Butcher Group. Autrans Ingersoll provides just-in-time/just-in-sequence assembly of automotive front-end sub-frame "super-cradle" modules for a major North American automotive manufacturer. Angle Advisors served as exclusive investment banking advisor to Autrans Corporation on the transaction.

Gentherm Incorporated acquired Etratech Enterprises, Inc., an Ontario-based designer and manufacturer of advanced electronic controls and control systems serving automotive, medical, and other end markets. Angle Advisors served as exclusive investment banking advisor to Etratech on the transaction. The deal was reported at a purchase price of approximately US$64 million.