The Opportunity:
Fabtech Motorsports has spent 30 years as one of the top autotech brands for the design and fabrication of suspension systems, lift kits, control arms, performance shocks and leveling systems for off-road racers and enthusiasts. Recently, the company wished to increase its North American presence, but needed funding from a like-minded mobility partner that would allow the company to maintain its high standards of quality fabrication and innovation.
How Capstone Helped:
Because of its extensive expertise in mobility and autotech funding, Capstone was able to complete an insightful pre-market analysis and valuation of Fabtech to identify its value drivers and potential buyers. Capstone then released the deal to the market through a competitive bidding process designed to maximize the highly recognized and respected industry status of the Fabtech brand.
As offers came in, Capstone negotiated counteroffers, disclosures, and final terms and conditions.
The Capstone Deal:
After a strong initial offer, Warn Industries became the official owner of Fabtech Motorsports. Warn Industries is globally respected as the leading manufacturer of automotive winches and related items. Warn was recently acquired by publicly-traded LKQ Corporation, a leading distributor of specialty automotive equipment, parts and accessories. Since the LKQ acquisition, Warn’s sales have benefitted from LKQ’s powerful distribution network, and it was clear that Fabtech stood to experience similar results. As a subsidiary of LKQ, Warn’s acquisition of Fabtech matches a strong brand name with the capital and reach of a larger publicly traded company.