New York firm buys stake in Louisville-based Bestop with eye on growth

LOUISVILLE — New York private-equity firm Kinderhook Industries LLC has purchased a stake in Bestop Inc., with the aim of helping the Louisville-based company expand its offerings within the Jeep and 4×4 accessories market.

Specific terms of the deal were not disclosed.

Bestop, which employs roughly 150 people in Louisville, will stay in town, with added hiring likely over the next couple of years, Bestop director of sales and marketing Jim Chick said.

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Bestop, a six-decade-old company with roots in the Longmont area, has been owned by Toronto-based automotive supplier Magna International since 1996. With the new deal, Kinderhook and Magna have equal stakes in a new joint venture that has purchased Bestop from Magna.

John Larson — former CEO of radar-detection device-maker Escort Inc., who also brings senior management experience from his days at General Motors — has been hired to fill the newly created position of chief executive of Bestop. Rick Sabourin, who had led Bestop as general manager, will remain with the company.

Bestop has been the original equipment manufacturer of soft tops for Jeep Wranglers since 1986. But the company also manufactures things such as bumpers and interior accessories, as well as truck accessories like tonneau covers.

Chick said the Kinderhook investment could lead to further acquisitions both under the Bestop umbrella and alongside Bestop under the new Kinderhook/Magna joint venture.

“This gives us some opportunities with Kinderhook’s backing to get into other product channels and new markets,” Chick said.

Bestop, which doesn’t disclose revenue, moved its headquarters from Broomfield to Louisville a year ago, leasing about 118,000 square feet at 333 Centennial Parkway. Sales, marketing, administration, finance, accounting, distribution and product engineering are all based at the site. The company also has an engineering operation near Detroit. The company moved its manufacturing from Broomfield to Mexico in 2010.

“We are excited to partner with Magna to execute an organic and acquisition-led growth strategy in the Jeep aftermarket,” Kinderhook managing director Tom Tuttle said in a prepared statement. “The combination of Bestop’s leading market position, the resources and operational expertise of Magna, coupled with Kinderhook’s extensive experience and relationships in the automotive aftermarket uniquely position Bestop to lead a successful consolidation in the Jeep aftermarket.  Continued investment in brand development and aggressive product innovation will accelerate Bestop’s growth and facilitate its extension into new and exciting markets and product categories.”