Recapitalization by Mangrove Equity Partners

Project Description

The Transaction:
Carr, Riggs & Ingram Capital Advisors (CRI Capital Advisors) acted as the sole investment banking advisor to APR, LLC in its sale to and recapitalization by Mangrove Equity Partners.

The Company:
APR, LLC is a leading producer of hardware and software systems that enhance the performance of Volkswagen Auto Group (VAG) cars, including the Audi, Porsche, Volkswagen, SEAT, and Skoda brands. They design, manufacture, and distribute automotive software that allows users to surpass baseline parameters set in place by automotive manufacturers. APR is also involved in manufacturing and distributing hardware that enhances the performance of a vehicle beyond its factory equipment package. This hardware ranges from turbochargers to exhaust systems; items that allow the consumer to alter and improve the performance of their vehicle.

The Objectives:
While APR dominated its niche, CRI Capital advisors were brought in to reassess its current market value and identify a buyer that could invest substantial capital to help improve and efficiently grow the company. Contrary to the typical time frame, the expedited nature of the deal required that a number of parties be brought to the table and a decision be reached in a short period of time. The CRI Capital Advisors team built a list of four essential objectives to help obtain the seller’s end goal:
Make a financial shift that not only cleared creditors and other sources of expenditure but also provided necessary operating capital that allowed the company to expand its offerings.
Continue current market domination by ensuring all products and services remained in production and allow further cultivation of new sub-niche markets by broadening the range of products.
Salvage relationships with current employees by allowing their participation in the success of the sale and securing their future at the company after completion of the deal.
Move quickly to secure funds as a means to ensure that any service disruptions were short-term and APR was able to maintain their reputation.

The Outcome:
CRI Capital Advisors sought out potential acquirers that would not only provide the necessary capital to allow APR to maintain its dominant status but also preserve the employee engagement that had been built over the years. They were able to quickly identified Mangrove Equity Partners as a potential buyer for the business. While the time sensitivity of the deal created complexity for shareholders and other involved parties, CRI Capital Advisors managed to quickly turn around the deal and finalize it in just over four months. Mangrove Equity Partners purchased APR and was able to improve operations, but also retain all current employees—per the request of the shareholders. APR has since been sold again with an extreme increase in value and has expanded current offerings into new markets.