Aero Performance Products Announces Investment Banking Agreement for Jones Exhaust Products Acquisition - aftermarketNews

Aero Performance Products Announces Investment Banking Agreement for Jones Exhaust Products Acquisition

Aero Performance Products has engaged Austin based M&A advisory firm Commerce Consulting Group to assist the company in the execution of its acquisition strategy.

BLUFFDALE, Utah — Aero Performance Products has engaged an investment banking and mergers and acquisitions advisory firm to assist the company in the execution of its acquisition strategy. Aero is targeting the strategic acquisition of companies in the performance exhaust industry that have strong balance sheets and cash flows.

Aero Performance Products has engaged Austin based M&A advisory firm Commerce Consulting Group, which has its primary offices in the Texas market. It is expected that Aero Performance Products will finance its acquisitions through the issuance of senior and junior debt that will be serviced from the cash flows of the target company. Commerce Consulting Group has been retained to assist in this process and has been actively engaged in the due diligence process along the way.

Aero’s first anticipated acquisition was recently reported through a definitive agreement to acquire Jones Exhaust Systems, a U.S.-based specialty exhaust manufacturer. Under terms of the agreement, Aero Performance Products will purchase all of the issued and outstanding shares of Jones Exhaust Systems including its manufacturing assets for a cash payment of $2 million and the assumption of up to $1.1 million in debt. The debt being assumed by Aero in the transaction includes lines of credit used by Jones Exhaust for operating capital.

“We are very pleased to be working with Commerce Consulting Group on our acquisition strategy,” said Bryan Hunsaker, CEO of Aero Performance Exhaust. “Aero will consider acquisitions that are accretive to earnings per share and that can be structured in such a way that existing Aero shareholders do not incur significant dilution. We believe that the Jones Exhaust acquisition fulfills the shareholder valuation and debt service requirements we have outlined for the rollup strategy. We anticipate funding additional prospective acquisitions through a variety of financing instruments including debt issuance and seller earn out.”

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