Southfield Capital, a lower middle market private equity firm based in Greenwich, Connecticut, announced Friday it has completed the sale of Fairfield-based Spectrum Automotive Holdings Corp. to Cornell Capital LLC, a private investment firm based in New York, New York.
Spectrum Automotive is an agent, marketer and administrator of finance and insurance for the automobile market.
“Spectrum’s strong relationships and differentiated F&I product portfolio have established the company as a clear market leader,” Henry Cornell, head of Cornell Capital, said. “With impressive growth, a diversified and resilient business model and an exceptionally talented management team, Spectrum embodies the type of business we strive to partner with at Cornell Capital. As the F&I sector continues to grow, we look forward to working with … the team to build on Spectrum’s momentum and capitalize on a range of compelling growth opportunities.”
Southfield Capital said it acquired Spectrum Automotive in 2015 in partnership with Spectrum’s management team. Over a four year investment period, Spectrum realized significant growth, more than quadrupling its earnings by expanding its sales platform, executing five acquisitions and broadening its product offerings.
Under terms of the deal, Spectrum’s management team will continue as shareholders in partnership with Cornell Capital.
“Southfield was an outstanding partner,” Jim Polley, CEO, Spectrum Automotive, said. “Everything they said they would do they did and then some. They provided great support as well as great mentorship. They are gentlemen to work with regardless of the situation. They are very open minded, fair and always looking for ways to grow. I would not hesitate to be partners with them again, and I have a great deal of gratitude for all the wonderful things that came of our time and relationship together.”
Sandler O’Neill & Partners L.P. acted as financial advisor, PwC provided transaction advisory services and Finn Dixon & Herling acted as legal advisor to Southfield.
Financial terms were not disclosed.