Kraco Enterprises To Acquire Auto Expressions From Shell Oil Company
June 9, 2010 — Business Wire — Kraco Enterprises, a leading distributor of automotive aftermarket floor mats, today announced that it has signed a purchase and sale agreement to acquire Auto Expressions. Auto Expressions is the automotive aftermarket accessories business of Pennzoil-Quaker State Company dba SOPUS Products, a subsidiary of Shell Oil Company. Terms of the transaction were not disclosed.
The Auto Expressions product line includes air fresheners, seat covers, sunshades, steering wheel covers, floor mats and auto organizers, with leading positions in the interior accessories and air care categories. Additionally, the Auto Expressions business has a powerful licensing platform, and demonstrated success in distributing products featuring pop culture icon Ed Hardy® beginning in 2008.
“By uniting the #1 leader in the floor mats category and the #1 leader in automotive air care and accessories products category, the combined entities will create an integrated, single source distributor and position us to better serve our customers,” said Bob Brocoff, Chief Executive Officer of Kraco Enterprises, who will lead the combined company. “Our customers will experience the benefits of a broader product offering, and we will work with retailers to help them maximize their ROI in their retail space.” Kraco Enterprises, which is owned by an affiliate of Sun Capital Partners, Inc., said it has no plans to change the Auto Expressions brand.
Auto Expressions is headquartered in Moorpark, California, and has offices in Manchester, United Kingdom, and Hong Kong. Substantially all of the current employees of Auto Expressions are expected to join Kraco upon completion of the sale.
Sawaya Segalas & Co., LLC(1), a leading consumer investment banking firm, acted as exclusive financial adviser to SOPUS Products in connection with the transaction.
(1) Securities offered through Sawaya Segalas Securities, LLC
About Kraco Enterprises, LLC
Kraco Enterprises is the leading distributor of automotive aftermarket floor mats including cargo floor mats for vehicle, home, and shop use. Founded in 1954, Kraco operates a 400,000 square foot facility in Compton, California, with over three million cubic feet of palletized top quality floor mats ready to ship. Products are distributed to more than 15,000 auto supply and general merchandise retail stories in the U.S. and Canada.
About Auto Expressions
Auto Expressions® is a branded line of quality automotive air care and accessories products, available in the auto section of many major retail chains around the world. The Auto Expressions® name appears on a wide variety of consumer car-care products that include air fresheners, seat covers, sunshades, steering wheel covers, floor mats, organizers, and more. Auto Expressions products are marketed by Pennzoil-Quaker State Company dba SOPUS Products.
About SOPUS Products
Pennzoil-Quaker State Company dba SOPUS Products manufactures, markets and distributes lubricants and car care products for consumer, transport and industrial use. Company brands include Pennzoil®, Quaker State®, FormulaShell®, Shell TELLUS®, Shell CASSIDA®, Shell ROTELLA® T, Shell SPIRAX®, Jiffy Lube® and a portfolio of leading car care brands. Pennzoil-Quaker State dba SOPUS Products is a subsidiary of Shell Oil Company, an affiliate of the Shell Group (NYSE: RDS.A and NYSE: RDS.B).
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in–house operating professionals and experience. Sun Capital affiliates have invested in more than 225 companies worldwide with combined sales in excess of $40 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates with offices in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen. For more information, please visit www.SunCapPart.com.