STERLING HEIGHTS, Michigan, September 6, 2006 - Advanced Accessory Systems (AAS), a leading maker of automotive roof racks and towing systems, announced today that it has completed the divestiture of its towing system businesses in the U.S. and Europe to Thule AB of Sweden for $203 million, subject to adjustments.
The assets involved in the sale included:
Brink International B.V., Europe's leading manufacturer and distributor of towing systems, related accessories and specialized trailers;
Valley Industries, North America's second largest supplier of towing systems and related accessories;
SportRack Accessories Inc., a leading Canadian manufacturer and distributor of roof racks, rooftop cargo boxes and hitch-mounted accessories.
As a condition to closing the transaction, AAS successfully tendered for 99.7% of its $150 million 10 ¾ % senior OpCo notes and 100% of its $88 million 13 ¼ % senior HoldCo discount notes not owned by affiliates of AAS, providing for the retirement of the notes so tendered and the elimination of most of the covenants from the remaining notes. As a consequence, AAS is no longer subject to the Securities and Exchange Act of 1934 or required to file annual, quarterly or interim reports with the SEC.
When the proposed transaction was announced in May, Alan Johnson, AAS president and chief executive officer, said it would "allow AAS management to concentrate all of its energies on our principal business, SportRack Automotive, which is the leading supplier of roof racks to all major original equipment automotive companies."
He said the initiative for the transaction had come from Thule, which had made a substantial offer for the AAS units. Together, the three businesses had revenues of $245 million in 2005, while SportRack Automotive's 2005 revenues were approximately $200 million.
AAS is owned by Castle Harlan Partners IV, L.P., a private equity limited partnership organized and managed by Castle Harlan, Inc., a leading New York-based private equity investment firm. Castle Harlan acquired AAS in the spring of 2003.
Castle Harlan invests in controlling interests in the buyout and development of middle-market companies in North America and Europe. Its team of ten managing directors, including its founders, has completed 45 acquisitions since its inception with a total value in excess of $8.7 billion. It is currently investing its fourth fund, Castle Harlan Partners IV, which closed in August 2003 with capital commitments of $1.2 billion. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960s.
Castle Harlan's current owned companies, which employ more than 42,000 people, include Ames True Temper, a highly-regarded manufacturer of lawn and garden tools and accessories, RathGibson, Inc., a leading manufacturer of highly engineered premium stainless steel and alloy welded tubing products, and Baker & Taylor, a prominent domestic and international distributor of books and entertainment products to libraries and retailers.