From San Luis Obispo Tribune
Grover Beach, CA’s Accessories Marketing Inc. (AMI), manufacturer of Slime tire sealant and tire care products, has sold a portion of the company to Friend Skoler & Co. Inc., a New Jersey private equity firm.
The new partnership gives AMI additional financial capital to expand and an opportunity to cross-sell its products with other automotive accessory companies in Friend Skoler’s investment portfolio, said Jim Cegelski, AMI’s chief executive officer. Those companies include Hopkins Manufacturing, a leading manufacturer of specialized towing products, and Carrand Cos., which makes automotive cleaning products.
Since 1989, AMI has been a pioneer and innovator in tire sealant and tire repair technology. Its trademark neon green tire sealant, called Slime, is exported to more than 36 countries and can be found in major retail outlets, including Wal-Mart, AutoZone, Target and Sears.
Although AMI’s principals did not disclose how large a stake Friend Skoler has in the company, the investment group typically invests between $10 million and $40 million into midsized companies and has a private equity fund worth $231 million in capital commitments. Cegelski said AMI’s gross revenues are around $40 million and projected that sales will increase to the $100 million range within the next five years.
AMI co-founder Steve Cegelski was bought out in the investment deal by Friend Skoler; he has now stepped down as president and will serve the company as a business consultant. His brothers, Jim and Rodney Cegelski, will continue to own and operate AMI as chief executive officer and executive vice president, respectively.
"We have had a history of great growth," Jim Cegelski said, "And now have the opportunity to expand exponentially in the future. This will be a win-win for all of us."
