Combination to benefit customers with more brands, products, fulfillment options, support resources, and dealer program benefits
IRWINDALE, Calif., June 5, 2023 /PRNewswire/ -- Turbo Wholesale Tires ("Turbo" or the "Company"), an industry-leading, designer, supplier, and wholesaler of proprietary and third-party branded tires backed by Kingswood Capital Management, LP (together with its affiliates, "Kingswood"), announced today that it has completed its acquisition of Tire Wholesalers Inc. ("TWI"), a Michigan-based wholesale distributor of third-party branded tires. As part of the transaction the Kogel family has become partial owners in the combined business alongside Kingswood and the Sepetjian family. Ross Kogel Jr. has been appointed Chief Operating Officer of the Company and Ross Kogel Sr. is serving in an advisory role. The combined management team will continue to report to Phillip Kane, Turbo's Chief Executive Officer. Turbo plans to retain TWI's name, locations, employees, and ways of doing business.
Founded in 1970 by Ross Kogel Sr., TWI is one of the largest independent tire distributors in the Midwest. TWI operates out of five locations, including three in Michigan, one in metro Chicago, and one in Salt Lake City, Utah. TWI recently expanded its 100,000 square foot metro Detroit facility into a new, technology enabled, 275,000 square foot warehouse and distribution center. This facility will be used as a template for new location growth, as the Company enters additional markets.
"We are thrilled to be partnering with Turbo and Kingswood," said Ross Kogel Sr. and Ross Kogel Jr., Founder and Chief Executive Officer of TWI, respectively. "The corporate cultures, functional strengths, geographies, and brand relationships of the two companies are highly complementary and Kingswood has an impressive track record of partnering with and supporting family- and founder-owned businesses. We look forward to working with Phillip Kane and the rest of the combined management team to ensure that our customers are the biggest beneficiaries of this combination."
"The opportunity to combine Turbo and TWI is exciting for both organizations," said Phillip Kane, Chief Executive Officer of Turbo. "TWI's expansion across the Midwest and beyond has been impressive, but more importantly, the high level of service they deliver to their customers and the way they care for their employees aligns perfectly with our values and priorities at Turbo. This combination will give our existing customers at both TWI and Turbo access to more brands, products, fulfillment options, support resources, and dealer program benefits."
"We are excited to partner with the Kogel family and the team at TWI as we build upon the success and momentum we have achieved at Turbo in our pursuit of growing a differentiated, global tire distribution platform," said Michael Niegsch, Partner of Kingswood. "The addition of Ross as our Chief Operating Officer along with the other strong operators at TWI adds even more capabilities to our talented management team."
Cerberus Business Finance expanded the Company's existing debt facility to support the acquisition and increase capacity for further growth. McDermott Will & Emery LLP advised Turbo on the transaction. Honigman LLP and P&M Corporate Finance advised TWI on the transaction.
About Turbo Wholesale Tires
Since 1983, Turbo has been a trusted tire supplier, leading the industry with a keen focus and understanding of the independent tire dealer. The Company has evolved into a national and international supplier of its proprietary (Lexani, Lionhart, and Rolling Big Power) and third-party brands, while continuing to stay true to its service roots. Turbo's understanding of consumer trends has led to the development of unique tire sizes and tread patterns that have driven not only rapid growth but the increasing attention of the trade and industry influencers alike. For more information, please refer to the Turbo website at turbotires.net.
About Tire Wholesalers Inc.
Founded in 1970, TWI is one of the largest independent tire distributors in the Midwest. TWI operates out of five locations, including three in Michigan, one in metro Chicago, and one in Salt Lake City, Utah. TWI has been family operated for over 50 years. For more information, please refer to the TWI website at twitire.com.
About Kingswood Capital Management, LP
Kingswood Capital Management, LP is a private investment firm primarily focused on investing in businesses in transition.?In addition to access to capital, Kingswood brings relevant industry relationships and a broad network of internal and external operating resources that can strengthen the businesses it partners with and enhance value. Kingswood has extensive?experience with complex transactions where it provides tailored solutions that ensure the best outcome for all constituents. For more information, please refer to the Kingswood website at kingswood-capital.com.
SOURCE Kingswood Capital Management, LP
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