RALEIGH, N.C. — Victor Capital Partners, a middle-market private equity firm that invests in specialty consumer, industrial technology and business services companies, has acquired tire-service equipment maker Coats Co. from Vontier Corp.
The purchase price is $72.5 million in an all-cash transaction that closed on Jan. 8.
LaVergne, Tenn.-based Coats makes an array of tire-service equipment, including wheel service, alignment, lift and inspection equipment for the automotive market under the Coats brand, serving a customer base of repair shops, tire dealers, big box retailers and car dealers through an established distributor network.
Founded by Gil Coats in 1947, Coats also maintains a service division that offers a nationwide network of mobile service technicians who deliver installation and repair services to ensure the reliability of the firm's equipment.
Coats will continue to be managed by its existing executive team, led by President and CEO Mauricio Sartori, who has over 30 years of industry experience, Coats said.
"We are thrilled to be partnering with Victor Capital and tapping into their deep expertise in developing strong, vibrant, innovative industrial businesses," Sartori said.
"The Victor Capital team shares our values of collaboration and customer-focus and is committed to building upon our legacy of great people, quality products, and a powerful brand."
Vontier Capital said the proceeds of the sales will be used "toward future debt reduction and share repurchases as we remain committed to delivering on our strategic priorities and driving superior value for our shareholders."
According to Vontier, Coats is projected to report 2023 revenue of approximately $110 million and pre-tax operating income (EBITDA) of approximately $10 million.
Raleigh-based Victor Capital Partners focuses on investing in "resilient industries and mission-driven branded businesses with outsized growth potential."
Vontier President and CEO Mark Morelli said the sale helps to demonstrate the firm's commitment to transforming its portfolio and sharpening its focus to deliver "more intelligent and differentiated solutions to our customers, and executing on our Connected Mobility strategy to connect, manage and scale the mobility ecosystem."
Vontier also owns Matco Tools, a Stow, Ohio-based maker and distributor of automotive repair and maintenance tools and equipment.