Report - May 3, 2019
Transportation & Logistics Industry Update
Harris Williams Engagement Spotlight
Harris Williams advises Pure Power Technologies, Inc. (“Pure Power”), a portfolio company of Kensington Capital Partners, LLC and investors advised by The Smithfield Group Limited, on its sale to Stanadyne LLC, a portfolio company of Kohlberg & Company, LLC. Pure Power is a market leader in the engineering and remanufacturing of air and fuel management components for the automotive aftermarket.
What We’re Reading
Higher New-Vehicle Prices Are Juicing Used-Car Market
As new-vehicle prices rise, more consumers continue to shift to the used-vehicle market. Last year, nearly two in three car buyers shopped primarily in the used-vehicle market amid inflating new-vehicle payments, according to Cox Automotive’s 2019 Car Buyer Journey study. “It just goes to show you that consumers’ wallets are getting squeezed. The price of new vehicles continues to increase, and more and more consumers are saying that these new cars in particular are becoming less affordable,” says Isabelle Helms, vice president of research and market intelligence for Cox Automotive.
Evolving Technology is Driving Increasingly Complex Collision Repairs
All too often, a look of confusion is etched on body shop customers’ faces, as they come to the realization that their required repair is going to be far more complicated than just paint and body filler, says Doug Martin, the president of the Indiana Auto Body Association. In 2019, vehicles are more complex and confusing than ever due to ever-evolving technology. Martin recounts a scenario where a tree limb fell on a 2018 Toyota Camry, damaging the air bag and radio. “The radio is $5,900. This customer was blown away; we had to explain to him how connected this piece is to the functioning of the electronics and driver-convenience features.”
Your car is watching you. Who owns the data?
"If you’re driving a late model car or truck, chances are that the vehicle is mostly computers on wheels, collecting and wirelessly transmitting vast quantities of data to the car manufacturer not just on vehicle performance but personal information, too, such as your weight, the restaurants you visit, your music tastes and places you go. The data trove in the hands of car makers could be worth as much as $750 billion by 2030, the consulting firm McKinsey has estimated. But consumer groups, aftermarket repair shops and privacy advocates say the data belongs to the car’s owners and the information should be subject to data privacy laws."
Public Markets Overview1
Stock Price Performance1
M&A Engagements1,2,3
Recent M&A Engagements
Our Group
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 Engagements
Deep Experience Across T&L Sectors
Public Comparables1
1. FactSet
2. MergerMarket
3. Pitchbook
