LOS ANGELES, Nov. 1, 2022 – Kingswood Capital Management, LP (together with its affiliates, “Kingswood”) announced today that it has completed an investment in Turbo Wholesale Tires (“Turbo” or the “Company”), an industry-leading, designer, supplier, and wholesaler of proprietary and third-party branded tires. Kingswood is partnering with Sarkis Sepetjian and the Sepetjian family, who are retaining significant ownership in the Company and joining Kingswood on the board of directors. Veteran tire executives, Phillip Kane and Larry Jeffries, have been appointed leadership roles at the Company and will serve as Chief Executive Officer and President, respectively.
Since 1983, Turbo has been a trusted tire supplier, leading the industry with a keen focus and understanding of the independent tire dealer. The Company has evolved into a national and international supplier of its proprietary and third-party brands, while continuing to stay true to its service roots. The industry’s proliferation of sizes and specialty fitments has required a broader and deeper inventory commitment by tire suppliers, which Turbo continues to demonstrate. With over a half million square feet of combined warehouse space in the United States, Turbo has the tires its customers need, when they need them.
“We are thrilled to be partnering with Sarkis and the Sepetjian family, who have done an excellent job growing Turbo’s business over the last decade and building an impressive portfolio of brands, including the Company’s proprietary Lexani, Lionhart, and RBP owned brands,” said Michael Niegsch, Partner of Kingswood. “The investment of growth capital and the additions of Phillip Kane and Larry Jeffries to the Turbo management team position the Company well to pursue accelerated growth and offer customers additional products and services.”
“The Turbo transaction represents another example of Kingswood’s expertise in partnering with family and owner-operated businesses,” said Alex Wolf, Managing Partner of Kingswood. “The success we and our partners have had in these situations is an important part of Kingswood’s strategy. We are excited about investing in and supporting Turbo’s continued growth and look forward to our partnership with Sarkis and the Sepetjian family.”
“With the Kingswood partnership and the addition of Phillip Kane and Larry Jeffries to our management team, we are ready to drive the next phase of growth at Turbo,” said Sarkis Sepetjian, Founder of Turbo. “The capital and support provided by Kingswood give us the opportunity to execute upon and realize the additional growth initiatives we have long wanted to pursue. It was critically important to our family to pick a partner that would care for our employees, customers, and supplier partners the way we do and support us in continuing to do things the right way. Kingswood will do just that.”
Cerberus Business Finance provided the Company with a new debt facility as part of the transaction. McDermott Will & Emery LLP and Configure Partners advised Kingswood on the investment. Buchalter and Kroll Securities advised Turbo on the investment.
About Turbo Wholesale Tires
Since 1983, Turbo has been a trusted tire supplier, leading the industry with a keen focus and understanding of the independent tire dealer. The Company has evolved into a national and international supplier of its proprietary and third-party brands, while continuing to stay true to its service roots. The industry’s proliferation of sizes and specialty fitments has required a broader and deeper inventory commitment by tire suppliers, which Turbo continues to demonstrate. With over a half million square feet of combined warehouse space in the United States, Turbo has the tires its customers need, when they need them. For more information, please refer to the Turbo website at turbotires.net/.
About Kingswood Capital Management, LP
Kingswood Capital Management, LP is a private investment firm primarily focused on investing in businesses in transition. In addition to access to capital, Kingswood brings relevant industry relationships and a broad network of internal and external operating resources that can strengthen the businesses it partners with and enhance value. Kingswood has extensive experience with complex transactions where it provides tailored solutions that ensure the best outcome for all constituents. For more information, please refer to the Kingswood website at www.kingswood-capital.com.