An affiliate of Castle Harlan Partners V has completed the acquisition of IDQ, a provider of Do-it-Yourself branded automotive aftermarket products for servicing and repairing automotive air conditioners.
The total transaction is valued at approximately USD160m before working capital adjustments.
Castle Harlan says the company will continue to operate under the IDQ name. IDQ products, such as air conditioning recharge and retrofit kits, premium refrigerant blends, specialty chemicals, straight refrigerants, and a wide range of complementary DIY and professional-use items, include brand names such as Arctic Freeze, Sub Zero and Super Seal Stop Leak.
IDQ was sold by Arsenal Capital Partners, a private equity firm based in New York.
IDQ is headquartered in Garland, Texas and has offices in Tarrytown, New York. IDQ’s management will continue to operate the company and will be investing in the transaction alongside Castle Harlan Partners V.
IDQ chief executive Michael Klein says: "We plan to build on our unparalleled breadth of product offerings and provide our customers, and the market in general, a focus on quality, service and value. We are delighted to be joining Castle Harlan, which has a long history of partnering with management teams to realise shareholder value through superior customer service."
Marcel Fournier (pictured), the senior managing director who led the Castle Harlan team, says the acquisition "creates a partnership with a strong, experienced management team that has built the undisputed market leader in this sector of the aftermarket industry. We look forward to working closely with IDQ to help it continue to grow in the years ahead. We believe IDQ has tremendous potential for organic growth and is a strong base on which to add acquisitions of other valuable brands and products."
The Valence Group acted as financial adviser to Castle Harlan in this transaction.
