Audax Private Equity and ISN management retained BlackArch Partners to assist in realizing a return on their investment in Integrated Supply Network (“ISN” or the “Company”) and to find a new partner positioned to capitalize on the Company’s organic growth opportunities and robust acquisition pipeline.
BlackArch designed a tailored marketing process that targeted financial sponsors and strategic acquirors with experience in the automotive aftermarket. ISN possessed a unique combination of factors that are sought by investors in the aftermarket: a defensible supply chain position that is highly recession resistant, a 30-year history of above-market organic growth and a proven acquisition strategy. The BlackArch team presented ISN’s position in the aftermarket supply chain as a critical link between more than 500 tool and equipment suppliers and 20,000 professional automotive resellers that ultimately sell to automotive mechanics and technicians. ISN’s international network of warehouses and a broad array of products, backed by customer service leadership, innovative use of technology and multi-step pull-through marketing capabilities, created a critical value proposition for both customers and suppliers. BlackArch visited a small group of potential acquirors for in-person meetings to ensure consistent positioning of key themes. To help interested parties understand the Company’s value-added business model, marketing materials included price, volume and contribution margin by customer segment and individual SKU.
ISN received significant interest from financial sponsors and strategic acquirors. ISN was acquired by Freeman Spogli & Co., a private equity firm dedicated exclusively to investing in and partnering with management in consumer and distribution companies. The ISN management team reinvested a significant portion of their proceeds in the Company.