Capstone Financial Group Sells Go Rhino to Big Country Truck Accessories
Posted: July 16, 2008
HILTON HEAD, S.C. Capstone Financial Group has sold Xtreme Metal Fab, (doing business as Go Rhino) to Big Country Truck Accessories, a subsidiary of Guadalajara, Mexico-based Industria DiseÑadora De Autopartes (IDDEA).
Go Rhino is a Brea, Calif.-based manufacturer of metal fabricated aftermarket accessories for light trucks and sport utility vehicles, which include products for public safety and soft-sided cargo management products.
According to Manuel Alvarez, president of IDDEA, commented, “Go Rhino’s strong branding, quality products and extensive distribution are well recognized in the industry and very appealing to Big Country. Ron Storer and his management team will continue growing the Go Rhino brand and providing their significant product development experience. We believe this is not only a win-win situation for Go Rhino and Big Country, but will benefit our suppliers, vendors and customers.”
Capstone was contacted by Go Rhino last year to discuss strategic alternatives which would allow for a divestiture of the founding shareholders’ interest while keeping the company’s talented professional management team intact. Due to the heightened interest in the auto aftermarket industry, Capstone entertained several bids for the purchase of Go Rhino from a variety of prospective purchasers, both financial and strategic. Big Country emerged as the winning bidder during final rounds of negotiations and subsequently completed a purchase of substantially all of Go Rhino’s assets.
The company added that the transaction is further evidence of the resiliency of auto aftermarket M&A, which has experienced a record number of transactions through the first half of 2008. Capstone’s President, Dan Smith, emphasized the significance of the transaction. “In a challenging economic environment, we’re seeing strategic buyers consolidating as a means of growing revenue and utilizing synergies to decrease expenses. Consolidation is occurring across borders and every auto aftermarket segment performance parts, chemicals, appearance products, and certainly truck accessories,” Smith stated.