Investment firm partners with management to grow leading automotive franchise
May 03, 2011 // Franchising.com // INDIANAPOLIS and PALO ALTO, Calif. - J.D. Byrider, the Indianapolis-based leading used car sales and finance business, announced today that it has been acquired by private equity firm Altamont Capital Partners (Altamont).
With a long-term investment horizon, Altamont will provide strategic direction, experienced resources and additional capital to support the company's growth and franchisee expansion initiatives. The acquisition of J.D. Byrider is Altamont's first investment from its $500 million inaugural fund, which closed late last year. The firm is focused on acquiring and building middle-market businesses across a range of industries.
J.D. Byrider's current President of Franchising Steven E. Wedding will assume the role of CEO, and the J.D. Byrider executive team will remain in place. James F. DeVoe, Jr. will remain a member of the board of directors and will serve as a consultant to the company.
"This is a milestone day for J.D. Byrider," said Wedding. "As a result of nurturing the J.D. Byrider brand over 20 years, our company is and has always been the leader of the used car sales and finance industry. We have a unique franchising model, and our proprietary Discover System is the industry's premier software. With this transaction, J.D. Byrider will be able to fully capitalize on existing business opportunities, including a large and fragmented market, and an expanding customer base. The investment will also allow J.D. Byrider to expand franchise-owned stores, add company-owned locations, pursue acquisitions and create additional opportunities for employee advancement."
"This is an opportunity to bring innovation, sharper strategic focus and new capital to a business that is ripe for growth," said Keoni Schwartz, managing director of Altamont. "We are enthusiastic about the opportunity to partner with Steve and his team to continue the work and make the investments required to help the company realize its full potential."
The company expects expansion to occur in several markets, and those interested in acquiring a franchise are encouraged to visit franchise.jdbyrider.com.
"Our business model is proven," said Wedding. "We're eager to team with new franchisees who recognize a tremendous opportunity to join our growing system."
Stephens Inc. served as J.D. Byrider's financial advisor on the transaction.
Founded in 1989 by the late James F. DeVoe, Sr., J.D. Byrider is the nation's leading used car sales and finance enterprise. The company was founded to serve customers with special auto financing needs and to ensure that they receive the same quality service in every J.D. Byrider dealership. With nearly 900,000 consumers matched to quality, affordable vehicles, the company continues its focus on reliability and customer satisfaction. Headquartered near Indianapolis in Carmel, Ind., J.D. Byrider consists of 127 franchised- and company-owned dealerships in 29 states. Visit www.jdbyrider.com to learn more.
Altamont Capital Partners is a private investment firm based in the San Francisco Bay Area with approximately $500 million of capital under management. Altamont is focused on investing in middle market businesses where it can partner with leading management teams to help its portfolio companies reach their full potential. The firm's principals have significant experience building business success stories across a range of industries, including financial services, consumer/retail, industrials, healthcare and business services.