NEW YORK, N.Y., August 29, 2006 – Falconhead Capital, a private equity firm specializing in investments in lifestyle, leisure and related businesses, today announced that it has sold its holding in National Powersport Auctions (“NPA”), of Poway, California, to Transportation Resource Partners, LP, in an all-cash transaction completed yesterday. NPA, which Falconhead acquired in February 2004, is the nation’s largest auction company focused on the powersport industry. Financial terms of the transaction were not disclosed.
David Moross, Chairman and Chief Executive Officer of Falconhead Capital, said: “Our investment in NPA provided an opportunity to combine Falconhead’s deep in-house strategic, operational and financial expertise with the skills, knowledge and industry relationships of NPA co-founder, president and CEO Cliff Clifford and his management team. Together, we created significant value for NPA’s customers, dealers and our investors over the past two and a half years, and NPA today is well-positioned for continued growth and success under its new ownership. We wish Cliff and his colleagues the very best on a job well done by and for everyone concerned.”
Mr. Clifford, who co-founded NPA (originally known as Cycle Express, Inc.) with Andy Lomas and several members of the Lomas family, said: “I want to thank David Moross and his colleagues at Falconhead for their valuable support over the past two-plus years. NPA was a strong and successful company when they invested in us, and is even stronger and more successful today. We appreciate the role they played in helping our business achieve its full potential.”
Strategic, operational and financial accomplishments at NPA during the thirty months of Falconhead’s ownership include a major regional expansion through a strategic acquisition; significant additions to an already strong management team; and dramatic growth of the company’s dealer trade-in (consignment) business.
William Blair & Company and Watch Hill Partners LLC were financial advisors to Falconhead with regard to the transaction.
Falconhead Capital, LLC (www.falconheadcapital.com) is a private equity firm established in 1998 to provide investors with significant long-term capital appreciation by investing globally in businesses in the leisure, lifestyle, recreation and related categories. In addition to National Powersport Auctions, Falconhead Capital's current and prior portfolio investments include Growing Family, Inc., Extreme Fitness, Escort, Inc., Premier Salons International, Maritime Telecommunications Network, and ESPN Classic Europe.
Transportation Resource Partners, LP is a $265 million private equity fund that makes leveraged investments in growth-oriented companies operating in the Transportation and Transportation Services Industries. TRP's philosophy is to identify attractive investment situations where it can work in partnership with management to support growth. TRP's principals have extensive operating and investing experience in the Transportation Industry. TRP, along with its predecessor fund, Penske Capital Partners, has been responsible for managing over $600 million of equity capital.