PHILADELPHIA CARDONE Industries, a world leader in the automotive parts remanufacturing industry, announced today that it has signed definitive agreements for the acquisition of its North American operations by affiliates of TPG Capital, L.P., a leading global private investment firm. Following the transaction, TPG will become the controlling shareholder and will work with the Cardone Family and executive team to continue the company’s growth. The transaction is expected to close at the end of 2011. Terms of the transaction were not disclosed.
“The remanufactured automotive parts industry is as strong as it has ever been and CARDONE experienced the best sales year in the company’s history in 2010,” said Michael Cardone Jr., chairman and CEO of CARDONE Industries. “Our dynamic growth and the increased demand for our products have presented CARDONE with business opportunities on a scale that we have never experienced before.”
“Over the past few months, CARDONE explored a variety of options that would provide the company with an influx of capital to accelerate expansion and invest in the future growth of the company,” said Cardone. “The acquisition of CARDONE by TPG will strengthen our position to pursue new product lines and further enhance our competitiveness within the industry.”
“We have been extremely impressed with the superb franchise that the Cardone family and its employees have built in the remanufacturing segment,” said Kevin Burns, partner at TPG Capital. “With its diverse portfolio of remanufactured products for cars and light trucks, and unmatched reputation for quality and reliability, CARDONE ensures its customers can meet the growing needs of the aging U.S. auto fleet. We look forward to working with the CARDONE team to build upon the great foundation that’s already in place.”
Barclays Capital served as financial advisor to CARDONE and Duane Morris LLP served as CARDONE’s legal advisor. Simpson Thacher & Bartlett LLP served as legal advisor to TPG.