April 01, 2021

Heartwood Partners Exits APG

Heartwood Partners is pleased to announce that on April 1, 2021, Heartwood Partners Fund II, LP exited its investment in Aftermarket Performance Group (“APG”, or the “Company”) (www.aftermarketperformancegroup.com) in a sale to Ripple Industries LLC (“Ripple”).

APG is a vertically integrated direct-to-consumer, eCommerce-retailer, private-label manufacturer, and distributor of performance automotive aftermarket parts and accessories for enthusiasts serving the pickup truck, compact performance, and Jeep and off-road segments.  APG delivers aftermarket performance parts to millions of customers annually. During Heartwood Partners’ ownership, APG completed six add-on acquisitions, successfully bolstering its direct to consumer, manufacturing, and distribution channels and creating a higher-quality, more robust offering for its customers.  Additionally, the Company built a world-class team that was integral in improving and integrating APG’s operating technology, analytics, and ERP system, organizing a strong supply chain, establishing an enthusiast culture, creating a private label offering, and expanding APG’s geographic footprint.  The Company operates five primary fulfillment centers, one manufacturing facility, and four sales offices throughout the U.S.

Russ Spieler, Managing Director at Heartwood Partners, stated, “It has been a pleasure working alongside the APG team for the last several years and we are proud of what has been accomplished.  Everyone at Heartwood Partners is looking forward to following APG’s success throughout its next phase of growth.”

APG CEO, Mike Sinoway commented, “Under Heartwood Partners’ guidance, APG has grown into a leading aftermarket accessories business. The company has been a strong platform for growth while simultaneously improving the customer experience. We have a great future ahead of us with new investment from Ripple and are excited for the next chapter. We will continue to execute our mission of delivering enthusiast passion at enterprise scale.”

William Bishop of Ripple stated, “We are excited to partner with the APG management team to invest in and accelerate the growth of APG across the automotive enthusiast sector.  We look forward to pursuing a multi-pronged growth strategy for APG, including both organic initiatives and strategic acquisitions.  Building on APG’s leading brands and furthering its focus on customer service, we share a common vision with the management team for the potential of APG.”

Current management of APG will continue to lead the business going forward under Ripple’s ownership.

Finn Dixon & Herling LLP served as legal advisor and Jefferies served as exclusive financial adviser to APG and its investors.  Latham & Watkins LLP served as legal advisor to Ripple and King & Spalding LLP served as legal advisor to APG management.

Heartwood Partners is focused on partnering with family and management-owners.  Our approach combines strategic execution with conservative capital structures to support long-term growth, including organic and acquisition-driven expansion into new products, services, and end markets.  Please visit the Heartwood Partners website at www.heartwoodpartners.com to review our approach and investment portfolio.

Please contact the following members of the investment team at Heartwood Partners with investment or add-on opportunities:

John Willert

John Newman