Confluence Advises Management & Investors in their acquisition of Automotive Systems Warehouse

Confluence Advisors, LLC (“Confluence”) served as the exclusive advisor to management and investors in their acquisition of Automotive Systems Warehouse, LLC (“ASW” or the “Company”). Tecum Capital (“Tecum”), Siguler Guff & Company, Centerfield Capital Partners, and UMB Family Wealth provided subordinated debt and equity and partnered with local investors (collectively, the “Investor Group”) and ASW’s senior management team to acquire the Company. ASW’s senior management team is led by CEO Rodney King, who will continue to run the Company with a focus on growth while providing industry-leading customer service. The financial terms of the transaction were not disclosed.

Founded in 1978 and headquartered in Pittsburgh, PA, ASW is a wholesale warehouse distributor of automotive allied products to the collision repair value chain. The Company, through its five strategically located warehouses, consolidates 300+ core vendors to offer tens of thousands of unique products, including key automotive product categories such as paint & coatings, abrasives, tools & equipment, tape, painting cups & filters, and primer. ASW is recognized as a market leader in the distribution of collision repair products by offering valued customer service, wide geographic coverage, and a comprehensive product offering.

Bob Van Kirk, who founded and has owned and operated ASW since its founding, noted, “I am excited to bring in partners whose values align with what we have built for over 40 years.” Rodney King, added, “The capital and expertise that the Investor Group brings to our business will allow us to capitalize on our many growth opportunities while maintaining the customer-focused culture that has made us who we are today.” With the financial and operational support of the Investor Group, the Company expects to execute on key strategic priorities, including geographic expansion, private label product development, expanded inventory availability, and opportunistic acquisitions.

Confluence Partner Walt Rausch commented, “Bob and Rodney and their team have built an industry-leading business. We are excited to have worked with the management team and the Investor Group to help facilitate the next phase of growth for the Company. We have the utmost respect for Tecum and have had multiple successful outcomes with them.”

Stephen Gurgovits, Jr., Managing Partner of Tecum, added, “We couldn’t be any happier with our first investment in Tecum Capital’s Fund III. It is an investment with a strong management team, in a sector that we are bullish on as we emerge from COVID, and with an Investor Group aligned with our values in a “backyard” deal. There is strong cultural alignment across the Investor Group and ASW as we collectively work to progress the Company through its next phase of growth.”

First Commonwealth Bank, based in Indiana, Pennsylvania, provided senior debt financing. Three Pittsburgh law offices provided transaction advisory services — Clark Hill and Metz Lewis worked with the Investor Group and Houston Harbaugh represented ASW.

The deal was Confluence’s fifth in the fourth quarter, all of which involved advising Pittsburgh companies.

About Confluence Advisors, LLC

Confluence Advisors helps business owners maximize the sale of a business, raise optimal funding, or acquire a business. With over 80 years of combined deal experience and more than $2 billion in transactions, the Confluence team works every day to help companies and their stakeholders through critical business transitions.

Confluence Advises Special Pathogens Laboratory in its sale to Pace Analytical

Confluence Advisors, LLC (“Confluence”) served as the exclusive advisor to Special Pathogens Laboratory (“SPL”) with respect to its sale to Pace Analytical Services, LLC (“Pace”), a portfolio company of Aurora Capital Partners (“Aurora”). SPL will operate as Pace’s flagship for national Legionella service offering.

Special Pathogens Laboratory provides evidence-based solutions to detect, control and remediate Legionella and other waterborne pathogens. The company is world-renowned and widely regarded as pioneering the market for Legionella testing, control, and prevention. SPL also provides consulting services for water safety & management plans and onsite water risk assessments. The Company operates out of a state-of-the-art 16,000 square foot testing laboratory in Pittsburgh, Pennsylvania.

“Special Pathogens Laboratory sets the industry standard for Legionella control and prevention,” states Pace® CEO, Eric Roman. “We look forward to welcoming Special Pathogens Laboratory and its highly qualified and dedicated team to Pace®. This acquisition reinforces our commitment to provide testing and analytical solutions to protect our environment and improve our health.”

Dr. Janet Stout, President and Founder of SPL shared,” We know Legionella, but when it came to how to transition SPL, we needed guidance from professionals. We found the absolute best partner with Confluence Advisors. They took the time to know us and our company. Their process was efficient and professional and exceeded our expectations every step of the way! With Confluence Advisors, we have secured a great future for our company and employees.”

Confluence Advises Paragon Foods in its sale to Sysco Corporation

Confluence Advisors, LLC (“Confluence”) served as the exclusive financial advisor to Paragon Foods (“Paragon”) with respect to its sale to Sysco Corporation (“Sysco”), a global leader in food distribution. Paragon will operate as part of FreshPoint, Sysco’s specialty produce company.

Paragon is a premier distributor of fresh and specialty foods to the restaurant and foodservice industry in Western Pennsylvania, Ohio, and West Virginia. The company operates out of a state-of-the-art 88,000 square foot distribution facility near Pittsburgh, Pennsylvania. Paragon also provides premium quality dairy, fresh meats, seafood and epicurean products to restaurants, hospitals, universities and K-12 schools, clubs, and corporate customers.

“We are excited to welcome all the employees of Paragon Foods to the FreshPoint family,” said Robert Gordon, FreshPoint’s President and Chief Executive Officer. “Paragon will continue to operate business as usual, and customers will continue to experience the same great service they have come to expect.”

All Paragon Foods associates, including the current leadership team, will remain in place.

Elaine Bellin, Chief Executive Officer and second-generation owner of Paragon shared, “From the beginning, the team worked hard for me and my company with the utmost integrity and professionalism. I know that all along Confluence had my back - that is a good feeling.”

About Confluence Advisors, LLC

Confluence Advisors helps business owners maximize the sale of a business, raise optimal funding, or acquire a business. With over 80 years of combined deal experience and more than $2 billion in transactions, the Confluence team works every day to help companies and their stakeholders through critical business transitions.

Confluence Advises Advanced Controls and Distribution in its sale to Genuine Cable Group

Confluence Advisors, LLC (“Confluence”) served as the exclusive advisor to Advanced Controls and Distribution (ACD), a wholly owned subsidiary of Premier Automation Holdings with respect to its sale to Genuine Cable Group (“GGC”). 

ACD is a provider of unique automation solutions for customers across western Pennsylvania, West Virginia and eastern Ohio. ACD’s full line offering ranges from controls to high-tech automation products from manufacturers including Siemens and Banner and robotics solutions from Nachi and more, along with an extensive supply of supporting products. ACD customers rely on their knowledgeable sales team and application engineers to select the right solutions for their specific needs

Mike Gunniers, President of Premier Automation Holdings shared, “The Confluence team was instrumental in the sale of ACD. Their sale process created competition that exceeded my expectations. The team’s knowledge of finance and accounting helped navigate the diligence process to ensure a smooth transaction.”