BGL Consumer & Retail Insider – eCommerce Draws Consumers and Investors in Automotive Aftermarket
November 01 2017
The BGL Consumer & Retail Insider addresses capital markets and mergers and acquisitions activity, financial and operating performance of certain publicly-traded companies, and trends and issues affecting the industry.
Technology is disrupting retail with Automotive Aftermarket among the industries seeing double-digit growth in eCommerce sales. Passionate enthusiasts and a growing cache of millennial consumers are increasingly making more automotive purchases online, contributing to the channel’s rapid penetration. More brands are investing in robust direct-to-consumer platforms to bolster sales and accelerate growth.
Private equity firms have taken notice of the growth in aftermarket eCommerce trends and consumer preferences. Newly acquired and existing platforms are on the hunt for highly accretive and synergistic add-on acquisitions. Notable activity in 2017 includes platform investments by Gridiron Capital (Rough Country Suspension Systems), CCMP Capital (Truck Hero), and Kinderhook Industries (Race Winning Brands).
We would welcome the opportunity to speak with you or your relevant relationships to more thoroughly discuss recent trends and attributes of the winners and losers in this changing landscape.