Transportation & Logistics Industry Update
Harris Williams Deal Spotlight
Highline Aftermarket Holdings LLC
Harris Williams advised Highline Aftermarket, a portfolio company of The Sterling Group, on its sale to Pritzker Private Capital. Highline is a leading national distributor of automotive aftermarket products.
What We’re Reading
Between Sept. 1 and the end of November, there has been a slew of expansion announcements from superregional MSOs and two national chains. As these larger MSOs move into new states, independent shops may find it more difficult to compete. Key drivers for rapid growth among national and superregional MSOs are access to capital, willingness to pay high valuations for the best MSOs, preferred access to insurance company referrals, established marketing, scaled infrastructure, and the ability to pay a premium for technicians in new markets.
State Farm claims consultant Chris Evans revealed that State Farm’s Select Service autobody shop locator will soon reveal OEM certifications held by individual repairers, likely by the first quarter of 2021. This move by the nation’s No. 1 insurer could increase overall awareness of the concept of OEM networks, which could be a positive for the certified segment of the collision industry, regardless of DRP status. Data reported by Ford has shown that customers are becoming more cognizant of OEM certifications with 52% of customers believing that choosing a body shop certified by a manufacturer is more important than choosing one that is convenient, recommended by the insurance company, or recommended by a friend or family member.
The production of auto parts continued its strong rebound in September as shown by the Industrial Production Index of Auto Parts and Allied Goods. This index measures the quantity produced compared to a base year, in this case 2012. In September, production was at 139.8, which means that almost 40% more auto parts were produced in September compared to 2012. The increase can be attributed to both the need to make up for the shortfall in the spring, when production was cut in half, and the need to supply the strong bounce-back in new car sales.
Technavio has been monitoring the automotive aftermarket e-retailing market and sees it poised to grow by $41.86B by 2024, progressing at a CAGR of almost 19%. The convenience of purchasing automotive products online is a key market driver that will likely outlive COVID-19-related stay-at-home advisories. Major players in this market are Advance Auto Parts, Alibaba Group Holding, Amazon, AutoZone, eBay, Genuine Parts Co., Icahn Automotive Group, and U.S. Auto Parts Network.
Harris Williams is a leading advisor to the transportation and logistics M&A market. Our Transportation & Logistics Group serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marine and air transportation, transportation equipment, and the automotive and heavy duty vehicle market.
Recently Closed Automotive Aftermarket Deals
Deep Experience Across T&L Sectors
Automotive & Heavy Duty Vehicle
Rail & Rail Services
Airport and Aviation Services