Southfield Capital Sells Spectrum Automotive Holdings Corp.

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Oct 11, 2019, 08:05 ET

GREENWICH, Conn., Oct. 11, 2019 /PRNewswire/ -- Southfield Capital, a premier lower middle market private equity firm, announced today that it has completed the sale of Spectrum Automotive Holdings Corp. ("Spectrum Automotive" or the "Company") to Cornell Capital LLC. Spectrum Automotive is an agent, marketer and administrator of finance and insurance products and services for the automobile market. Spectrum Automotive's clients include over 1,400 automobile dealerships, OEMs and administrators across the US. Terms of the private transaction were not disclosed.

Southfield Capital acquired Spectrum Automotive in 2015 in partnership with the Company's management team. Spectrum Automotive realized significant growth over the 4-year investment period, more than quadrupling the earnings of the business through expanding the sales platform, executing five strategic acquisitions and broadening the product offerings to include an extensive suite of solutions for its clients. The sale represents a highly successful exit for Southfield's investors. The management team is continuing as significant shareholders in partnership with Cornell Capital.

"Southfield was an outstanding partner," said Jim Polley, Spectrum Automotive CEO. "Everything they said they would do they did and then some. They provided great support as well as great mentorship. They are gentlemen to work with regardless of the situation. They are very open minded, fair and always looking for ways to grow. I would not hesitate to be partners with them again, and I have a great deal of gratitude for all the wonderful things that came of our time and relationship together."

Andy Cook, a Partner with Southfield Capital, stated, "Working with Spectrum Automotive's senior leadership over the last few years to strengthen the value proposition and expand the service offering to our clients was a great experience. We are thrilled with the growth achieved in a short period of time and the team's ability to create a truly unique asset in the F&I industry. We wish everyone the best of luck in the next chapter."

Sandler O'Neill & Partners, L.P. served as financial advisor, PwC provided transaction advisory services and Finn Dixon & Herling acted as legal advisor to Southfield in this transaction.

About Spectrum Automotive Holdings Corp.
Founded in 1999, Spectrum Automotive is an agent, marketer and administrator of vehicle service contracts for automobile dealers, OEMs and administrators across the US. It is one of the largest independent F&I agencies in the US and assists dealers with improving profitability, enhancing brand awareness and increasing customer retention.

About Southfield Capital
Southfield Capital is a private equity firm that invests in high-growth, lower middle market companies in the outsourced business services sector. The firm targets companies with $4 - 12 million in EBITDA and partners with management to scale the business through a combination of organic and acquisition growth strategies. For more information, please visit www.southfieldcapital.com.

Our Team
Andy Levison, Managing Partner
Andy Cook, Partner
Heb James, Partner
Tim Lewis, Partner
Brandon Pinderhughes, Principal
Chris Grambling, Vice President
Josh Sylvan, Associate
Logan Vorwerk, Associate
Jon Goldstein, Chief Financial Officer