4WP - Raleigh Closed?

DSM Turbos

DSM Turbos

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I haven't been paying attention and may have missed it, but does anybody have the details?

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Polaris to Sell Auto Parts Business for $50M | Twin Cities Business

Polaris to Sell Auto Parts Business for $50M​

The Medina-based manufacturer is selling its Transamerican Auto Parts business to focus on its offerings in the powersports and marine markets.
By Dan Niepow
June 20, 2022
Medina-based outdoor equipment maker Polaris Inc. plans to sell off a significant portion of its aftermarket parts business.
Last week, the company announced that it plans to sell its Transamerican Auto Parts (TAP) business – a retail parts division that generated $760 million in revenue for Polaris last year. That’s a substantial part of Polaris’s aftermarket business, which generated $930 million in total in 2021.
The buyer is Colorado-based Wheel Pros, which sells its own line of aftermarket parts for trucks, SUVs, passenger cars, and off-road vehicles. The sale price, not including cash, debt, or other costs, is $50 million.
 
I guess I just assumed they would keep the locations open. It sounds odd they would just reopen the store with a different name under the new parent company?

Wheel Pro's has been on a buying spree, also buying hoonigan
 
Loudmouthbass said:
Last week, the company announced that it plans to sell its Transamerican Auto Parts (TAP) business – a retail parts division that generated $760 million in revenue for Polaris last year. That’s a substantial part of Polaris’s aftermarket business, which generated $930 million in total in 2021.
The buyer is Colorado-based Wheel Pros, which sells its own line of aftermarket parts for trucks, SUVs, passenger cars, and off-road vehicles. The sale price, not including cash, debt, or other costs, is $50 million.
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I'd like to see the full numbers on that. From the outside, it seems like WheelPros got a REALLY good deal.
 
jeepinmatt said:
I'd like to see the full numbers on that. From the outside, it seems like WheelPros got a REALLY good deal.
Click to expand...
The first line says revenue, not profit. I suspect there are low margins, but the prices of sxs parts doesnt suggest that. Sounds kinda like a Carvana deal.
 
paradisePWoffrd said:
The first line says revenue, not profit. I suspect there are low margins, but the prices of sxs parts doesnt suggest that. Sounds kinda like a Carvana deal.
Click to expand...
Sure, but with a revenue of $760mm, assuming a 5-10% margin, it pays for itself within the first year. Plus the assets of the stores alone have to be worth significantly more, and then there's all the warehouses:
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Like I said, I'd like to see the full numbers on it. With the Jeep and truck mod scene being what it is, it has to be a very profitable business.
 
Transamerica I've heard of but not Wheel Pros. I did not reaize Transamerica was owned by Polaris.
 
jeepinmatt said:
Sure, but with a revenue of $760mm, assuming a 5-10% margin, it pays for itself within the first year. Plus the assets of the stores alone have to be worth significantly more, and then there's all the warehouses:
View attachment 385323

Like I said, I'd like to see the full numbers on it. With the Jeep and truck mod scene being what it is, it has to be a very profitable business.
Click to expand...

I dont disagree. Typically, if it seems to good to be true, there is likely something shady going on.
 
What I’ve heard, (through the grapevine, take it with a grain of salt), is that TAW got sold, including all retail and wholesale locations and brands.
Meyer Distributing is taking the wholesale side of things, and Wheel Pros bought the retail side of things; including the 4WP stores and inventory in the warehouses.

The 4WP stores that remain will continue to sell house brands only, but likely many will close. They will sell out the warehouse inventory, then warehouses will get sold or repurposed. Supposedly, Poison Spyder and a few other brands will be sold off in groups to the highest bidder; it’s likely that those bidders are already chosen and deals are in the works.

Greg Adler who sold 4WP many moons ago, had a non-compete clause in the sale contract, so he invested his funds into real estate. When the non-compete clause was up, he started Offroad Warehouse, and it has been suggested that he will buy up the 4WP locations as they close and will expand his OW locations.


AGAIN, it’s all hearsay, I wasn’t involved in those negotiations, but my source has been pretty spot on, even before any of this became public knowledge.
 
Thanks for that info... not really what I was expecting.

Given the revenue that TAP seems to generate, and them potentially not being at Polaris Dealers anymore; I was expecting for the 4WP stores to be converted to selling SXS parts. Selling parts & working on SxS almost seems as profitable as a Harley shop these days.
 
Funny thing happened to me yesterday and I thought about this thread. I booked a load of wheels I was told from Jacksonville, FL - Tamarac, FL. for a great rate. When I get the RC its picking up at Tansamerican Parts and delivering to Wheel Pros. PO is 4WP project.
 
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