Kian Portfolio Exit Announcement — Motor City Industrial

Kian Capital Partners (“Kian”) and Oakland Standard, two middle-market focused private investment firms, are pleased to announce the recent exit of their investment in Motor City Industrial (“Motor City”) through a sale to AFC Industries (“AFC”), a portfolio company of Bertram Capital. Genuine partnership, mutual commitment and strong alignment led to the transformation of an established family-owned business to a market-leading platform of national scale within the value-added distribution industry. Terms of the transaction were not disclosed.

Motor City is a value-added distributor of fasteners and other consumable industrial products. For more than 50 years, the company has served as a vital supply chain partner to its customers, providing rapid fulfillment of mission-critical products. Motor City’s broad assortment of SKUs and skilled sales force with deep application expertise enables the company to solve the procurement challenges of its customers. Additionally, Motor City has developed a proprietary suite of technology, assisting customers in containing costs through process mapping and detailed consumption reports.

“Kian and Oakland Standard were true partners, providing critical guidance as we navigated meaningful growth and a challenging operating environment brought on by COVID,” said Joe Stephens, CEO of Motor City. “They showed unwavering support for our company and people, investing the capital and time needed to maximize Motor City’s potential, seize opportunities and fortify the business. This support, combined with the team’s hard work, led to a successful outcome for the company’s stakeholders and a new partnership with AFC that I am confident will bring even more value to our customers.”

Motor City underwent a major transformation under the ownership of Kian and Oakland Standard, transitioning from a family-owned business into a professionalized organization capable of generating consistent growth and adding scale in an incredibly fast-growing and dynamic market. Primary areas of focus were augmenting the management team with key senior hires, executing a targeted buy-and-build strategy and implementing new technology. The addition of several talented individuals—Joe Stephens (CEO), Tim Hopman (CFO) and Jason Brown (CRO)—was instrumental in taking Motor City to the next level. Kian and Oakland Standard worked with the management team to close three acquisitions, which broadened Motor City’s footprint, expanded its product line and service offerings and brought the company into new end markets. Additionally, the team deployed new technology at customer sites to complement its existing value-added vendor-managed inventory and kitting services. Ultimately, these initiatives enabled Motor City to more than double EBITDA during the partnership.

“We are passionate about helping companies create sustainable, long-term success and drive to persevere despite the inevitable challenges that come along the way,” said Rick Cravey, Co-Founder and Partner at Kian Capital. “The Motor City of today is the result of a significant team effort showcasing the true meaning of genuine partnership. We want to thank all of our partners in the deal, particularly Joe Stephens and the rest of the management team, who helped transform the company into the professionalized business it has become. We are proud of the milestones we achieved together and wish them all continued success as they begin the next chapter with AFC.”

Bryan Tolles, Founder and Managing Partner at Oakland Standard, added, “We have been proud to partner with Motor City’s team to help drive growth and position the company for long-term success. AFC’s purchase of Motor City is the culmination of years of hard work by the entire team and a testament to the caliber of business we have all created. We are excited to see what AFC and Motor City will accomplish together.”

TM Capital served as Motor City’s exclusive financial advisor. Honigman and Robinson Bradshaw provided legal advice.