Summit Park, a Charlotte-based private investment firm, is pleased to announce the sale of its portfolio company C.A.R.S. Protection Plus to Spectrum Automotive, a portfolio company of Cornell Capital. Terms of the transaction were not disclosed.
CARS, headquartered in Murrysville, Pennsylvania, is a leading provider of vehicle service contracts ("VSCs") to independent and franchise dealerships throughout the United States. Since the Company's founding in 1998, CARS has developed specific expertise in the high-mileage segment of the VSC industry.
Following the recapitalization of the business in December 2015, Summit Park worked with the Company's founder, Mike Tedesco, and the CARS management team, led by President & CEO Lance LaCoe, to create a national provider of VSCs. The Company expanded the number of states in which it is licensed to do business from 35 in 2015 to 50 today. Over this time period, CARS also introduced new products and developed successful partnerships with national sales agencies, resulting in significant growth in the Company's business with larger, franchise dealer groups.
"The CARS team did an amazing job growing the business and strengthening the Company's position as a leading provider of high-mileage VSCs," said Bob Calton, Co-Managing Partner at Summit Park. "We have enjoyed our partnership with Mike Tedesco and the current management team over the past several years and look forward to tracking the continued success of CARS as part of Spectrum Automotive."
The transaction marks Summit Park's third exit from its second fund, Summit Park II, which had a final closing in April 2015. CARS and Summit Park were advised by McGuireWoods LLP (legal advisor), William Blair & Company (financial advisor), Riveron (accounting advisor), and PriceWaterhouseCoopers (tax advisor).
About Summit Park
Summit Park is a Charlotte, North Carolina-based private investment firm focused exclusively on the lower middle market. The firm seeks to invest between $20 and $50 million of equity capital across a wide range of industries, including business and consumer services, light manufacturing and value-added distribution. Summit Park targets businesses with revenue between $20 and $100 million located in the Eastern half of the United States. The firm's capital can be used to facilitate a change in ownership, to support expansion and growth, to provide partial liquidity to existing owners, or to support an industry consolidation plan.
For more information, visit www.summitparkllc.com.
