Michigan-based private equity firm Transportation Resource Partners has acquired Cycle Express (which does business as National Powersport Auctions) from New York private equity firm Falconhead Capital. Terms were not disclosed, but Falconhead’s exit reportedly generated a 4x return on a 2004 investment of about $50 million.
National Powersport Auctions (NPA) auctions repossessed, salvage or consignment vehicles, including speedboats, snowmobiles, motorcycles and other recreation vehicles. The auctions take place live and on the internet. Buyers are typically vehicle dealers looking to meet consumer demand.
David Mitchell, principal of Transportation Resource Partners, said that there were no plans to radically alter NPA’s current growth strategy. Over the life of the investment, he said, they will look for opportunities to expand to other locations, and possibly to other countries.
Transportation Resource Partners currently manages a $265 million fund. Last December, it purchased HomeDirect, an Illinois-based supply chain company providing transportation services, home delivery and assembly of large consumer goods, for an undisclosed sum.