New York-based private equity firm Falcolnhead Capital announced the acquisition of National Powersport Auctions (NPA).
Terms of the deal were undisclosed, according to the statement.
NPA, founded 13 years ago as a family business, auctions repossessed, recovered and salvaged motorcycles, all-terrain vehicles and personal watercraft exclusively to powersport dealers. The items on the company’s auction block come from lending facilities such as banks that need an agent to dispose of repossessed vehicles. Currently, NPA is only one of two companies to focus on the powersports auction space in the US. In 2003, the company recorded total auction sales of more than $100 million.
Falcolnhead chairman and chief executive officer David Moross said that NPA is the leader in its industry, with a more than 80 percent market share in a fast-growing segment of the $4 billion US consignment industry. Moross said the company has great potential because even in non-recessionary times, when more vehicles are repossessed, powersport repossessions remain stable at between 6 percent and 8 percent. In addition to operating in a large market, he sees potential growth especially in the Midwest region where such services are lacking.
Falconhead was originally founded as a pledge fund in 1998 by IMG, the world's largest sports marketing and management firm; Moross; and Chase Capital Partners. In 2001, after receiving a $122 million committment from the California Public Employees' Retirement Systems (CalPERS), Falconhead became a full-fledged private equity fund and parted ways with Chase Capital. The firm targets leisure-, lifestyle-, media- and sports-related companies. In February 2003 Falconhead bought Maritime Telecommunications Network from publicly traded cell phone tower company American Tower in a $30 million deal.