ADESA Inc, a leading provider of wholesale vehicle auctions and used vehicle dealer floorplan financing, has been acquired by a group of private equity funds consisting of Kelso & Comp
ADESA Inc, a leading provider of wholesale vehicle auctions and used vehicle dealer floorplan financing, has been acquired by a group of private equity funds consisting of Kelso & Company, GS Capital Partners, part of the principal investment area of Goldman Sachs, ValueAct Capital and Parthenon Capital. As previously announced, ADESA stockholders will receive USD 27.85 per share in cash.
As part of the transaction, Insurance Auto Auctions, Inc. (IAAI), a leading provider of automotive salvage auction and claims processing services in the United States, was contributed to the surviving corporation. Prior to the transaction, IAAI was owned by Kelso & Company, Parthenon Capital and certain members of its senior management.
The total transaction value, including the contribution of IAAI, the assumption or refinancing of approximately USD 700 million of debt and the payment of related fees and expenses, is approximately USD 3.7 billion.
Michael B. Goldberg, Managing Director of Kelso & Company, said: "With the closing of the deal now behind us, we look forward to entering the next stage of our partnership with ADESA and IAAI. Both ADESA and IAAI have built their organizations into leading competitors in their respective spaces, and the equity sponsors will remain committed to providing the resources necessary to help grow the combined company."
Headquartered in Carmel, Indiana, ADESA, Inc. is a leading provider of wholesale vehicle auctions and used vehicle dealer floorplan financing. ADESA’s operations span North America with 54 ADESA used vehicle auction sites, 42 Impact salvage vehicle auction sites and 85 AFC loan production offices.
Insurance Auto Auctions, Inc., founded in 1982, a leader in automotive total loss and specialty salvage services in the United States, provides insurance companies with cost-effective, turn-key solutions to process and sell total-loss and recovered-theft vehicles. The company currently has 95 sites across the United States.
