Kinderhook Industries LLC has announced the recapitalization of NitroFill LLC, in partnership with NitroFill’s CEO Jay Lighter. Financial terms of the transaction were not disclosed.
Headquartered in Pompano Beach, Florida, NitroFill is a developer and marketer of patented nitrogen generation and inflation systems for passenger and truck tires as well as related tire warranties, customer benefit programs and reseller customer retention programs. NitroFill’s flagship product offering is a Tire Protection Plan program, sold primarily to and through new car dealerships, leveraging the company’s patented nitrogen tire inflation product and unique product warranty, including tire repair and replacement coverage, roadside assistance and other benefits, a comprehensive CRM solution to increase customer traffic and tire and service sales while providing significant value to end-user consumers.
“We are thrilled to have the opportunity to partner with Kinderhook,” said Lighter. “When we set out to find the right partner to help fulfill our vision for NitroFill, we were focused on identifying a firm that could provide us with the financial and strategic resources we needed to rapidly grow our business. Kinderhook’s extensive experience in the automotive aftermarket coupled with their deep network of operating partners made them the clear choice for NitroFill. We are eager to embark on the next phase of our growth with the Kinderhook team.”
The transaction represents Kinderhook’s 38th automotive-related transaction. NitroFill was recapitalized through an investment made by Kinderhook Capital Fund IV, a private equity fund raised in 2014 with $500 million of committed capital.
“We are excited to work closely with Jay and the NitroFill Team to build on the company’s success,” said Paul Cifelli, managing director at Kinderhook. “NitroFill has carved out an attractive niche in the tire care industry yet they have only scratched the surface from a market penetration perspective. The opportunity to invest in expanding the company’s service offerings as well as geographic reach is highly attractive. There were in excess of 17 million cars sold this year in the United States and every one of them is a candidate for NitroFill’s suite of product offerings and tire care programs.”
Kirkland & Ellis LLP served as legal counsel to Kinderhook. Financing for the transaction was provided by TCF Capital Funding. Western Reserve Partners advised NitroFill on the transaction.