#USA #River Associates #Chattanooga #Aftermarket Parts #Horsepower Automotive

River Associates' Strategic Acquisition of Horsepower Automotive Group

On July 8, 2026, River Associates Investments, L.P., known for its focus on the lower middle market, announced a significant development in the automotive aftermarket sector with the acquisition of Horsepower Automotive Group. This acquisition, which finalized on June 11, 2026, marks River Associates' third platform in the automotive aftermarket industry.

About Horsepower Automotive Group

Headquartered in Chandler, Arizona, Horsepower Automotive Group operates a portfolio of recognized aftermarket brands that cater to enthusiasts across various vehicle platforms, including popular names like Ford, Mercedes, Jeep, Chevrolet, Toyota, and more. The company specializes in designing, manufacturing, and distributing a wide range of performance parts and accessories aimed at enhancing the functionality of off-road, adventure, and adventure vehicles.

Their product offerings include bumpers, armor, suspension components, racks, storage systems, and exterior accessories, collectively aimed at meeting the needs of a diverse group of vehicle owners, upfitters, distributors, and OEM accessory programs. Some notable brands under Horsepower's umbrella include Flatline Van Co. (FVCO), DV8 Off-Road, Addictive Desert Designs (ADD), C4 Fabrication, and Rago Fabrication.

Partnership for Growth

Chris York, CEO of Horsepower Automotive Group, commented on the acquisition: "Throughout the process, River Associates stood out as the right partner for Horsepower Automotive Group due to their thoughtful approach and extensive experience working with automotive aftermarket companies. We are excited to partner with a team that understands our brands, our customers, and the growth opportunities ahead."

The vision shared by both River Associates and Horsepower is one of growth and innovation within the automotive aftermarket. With River's backing, Horsepower is set to continue investing in research and development, focusing on new product launches, expanding capabilities, and solidifying its presence in the off-road and overland aftermarket sector. York emphasized the importance of maintaining the core values and quality that Horsepower's brands have built over the years with automotive enthusiasts.

River Associates’ Commitment

Blake Lewis, a principal at River Associates, expressed enthusiasm about the acquisition, stating: "Horsepower is an excellent platform for River's Fund VIII, featuring premium enthusiast brands, a robust management team, and a scalable operational foundation. We are keen to support Horsepower in enhancing its product development and manufacturing capabilities."

The acquisition was facilitated through equity from River's eighth investment fund, River VIII, L.P. Led by Blake Lewis and Jacob Poe, the transaction also received financing from Abacus Finance Group, LLC, and GMB Capital Partners, while Holland & Knight, LLP provided legal advisory for River Associates. Conversely, Horsepower was guided by Prestwick Partners, LLC, and Honigman Miller Schwartz and Cohn LLP.

Future Aspirations

Looking ahead, River Associates, in collaboration with Horsepower management, aims to pursue strategic add-on acquisitions that will complement and enhance the Horsepower platform. This strategy includes seeking businesses involved in manufacturing, distributing, or supplying parts and accessories for off-road and overland vehicles, thereby expanding their product scope and operational capabilities.

With a history of over 35 years in investing exclusively in the lower middle market, River Associates targets companies with an initial EBITDA ranging from $3 million to $12 million, often focusing on niche manufacturers in various industries. The firm has successfully executed over 125 transactions since its inception in 1989 and continues to build a diverse portfolio that will sustain its growth trajectory in the years to come.

For more insights into River Associates’ strategic investments or potential add-on opportunities, interested parties can reach out to Mark Jones or Kirby Poindexter directly. It’s a crucial moment for River Associates, Horsepower Automotive Group, and their shared vision of innovation in the automotive aftermarket.