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Date Jul 29, 2014
Source TA

TA Associates Announces Majority Investment in THI

BOSTON - TA Associates, a leading global growth private equity firm, today announced it has completed a majority investment in Tectum Holdings, Inc. (“THI”), a leading manufacturer of pickup truck accessories. Additional terms of the investment were not disclosed. TA acquired its stake from shareholders, including Kinderhook Industries, which retained a minority interest in the company.

Based in Ann Arbor, Michigan, THI manufactures soft and hard bed covers, also known as tonneau covers, for light duty pickup trucks. Designed for security and cargo protection, the covers are available in a variety of soft and rigid materials such as vinyl, plastic and metal, and numerous styles, including retractable, folding, roll-up and snap-on units. The company also manufactures cushioned and carpeted protective liners for truck beds. THI products are sold through independent retailers such as truck accessory stores, new and used vehicle dealerships and e-commerce websites. The company sells products under market leading brands, including Extang, TruXedo, UnderCover, Retrax, BAK and Advantage. THI operates manufacturing facilities in California, Michigan, Missouri, North Dakota, South Dakota and Tennessee.

“THI is a leading provider in the U.S. tonneau cover market,” said Michael S. Berk, a Managing Director at TA Associates who will join THI’s Board of Directors. “The company has completed a number of strategic acquisitions over the past several years that have complemented its organic growth and helped solidify its market position. We are pleased to complete our investment in this dynamic company and will focus on helping THI continue and accelerate its strong financial performance.”

“We welcome TA Associates as an investor and THI Board member,” said Bill Reminder, CEO of THI. “With their impressive history of building additional value in successful businesses, TA is an ideal partner for THI. Our growth strategy will focus on product innovation and new product introductions, as well as possible additional product categories, and we will work closely with TA in these endeavors.”

“THI has been growing organically much faster than the overall market, with impressive profitability,” said Jeffrey S. Barber, a Managing Director at TA Associates who will also join THI’s Board of Directors. “Among the industry’s growth drivers are new truck sales and a high penetration rate of tonneau cover sales for new and used vehicles, driven in part by product innovation. We anticipate that THI’s addressable market will provide for steady growth in the years ahead.”

Goodwin Procter LLP served as legal counsel to TA Associates. Robert W. Baird & Co. served as financial adviser and Kirkland & Ellis LLP served as legal counsel to THI and Kinderhook.

About Tectum Holdings, Inc.
THI is the holding company for the Extang, TruXedo, UnderCover, Advantage Truck Accessories, Retrax and BAK Industries brands, leading manufacturers of tonneau covers for light duty trucks, and BedRug, a pioneer in the development of bed liners. Today, THI’s brands are recognized as the top brands in the U.S. light duty truck aftermarket and leaders in product innovation. For more information, please visit www.thicorp.com

About TA Associates
TA Associates is one of the largest and most experienced global growth private equity firms. The firm has invested in more than 440 companies around the world and has raised $18 billion in capital. With offices in Boston, Menlo Park, London, Mumbai and Hong Kong, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. More information about TA Associates can be found at www.ta.com.