Redcap&Truss acted as exclusive financial advisor to the ownership of CTP Distributors/Custom Truck Parts Inc. (“CTP”) on its sale to Action Car and Truck Accessories (“Action”).
CTP Distributors Inc. is Western Canada’s largest truck accessory retailer. With a 60,000 sq ft main central distribution warehouse, three additional regional distribution warehouses (totalling 50,000 sq ft), five retail stores located in British Columbia and Alberta and an e-commerce store, CTP has been able to offer a very large and diverse selection of truck, jeep and commercial accessories throughout Canada.
Action Car and Truck Accessories is a leading distributor and retailer of automotive aftermarket accessories with 32 stores from Newfoundland to Saskatchewan, two distribution centres with over 100,000 sq ft of combined space and an e-com store with a head office located in Moncton, New Brunswick.
Redcap&Truss acted as the exclusive financial advisor to CTP’s shareholders and facilitated the sale by:
- Analyzing CTP’s financial statements, asset list and its service offering (both historical and future) and developing an initial estimate of sale value
- Developing a sales strategy, creating the marketing plan and identifying and approaching prospective buyers (both strategic buyers and private equity firms)
- Providing CTP’s shareholders with an analysis of the various proposals offered and making recommendations on the pros and cons of each
- Quarterbacking all due diligence and documentation communications required between all the potential buyers, accountants and lawyers involved in the transaction
- Negotiating the final LOI (letter of intent) and PSA (share purchase and sale agreement) with Action