IRVINE, Calif. — Portfolio Group, which provides financial services to automotive dealerships, announced that Frontenac has completed recapitalization of the company in partnership with its founding owners, management and CEO1st partner Thomas Dattilo. Terms of the private transaction were not disclosed.
Portfolio Group said its partnership with the Chicago-based private equity firm will give the company additional resources and capabilities to continue to grow its business and build revenues for its clients. The company’s current management team, led by President and CEO Steve Burke, will continue to manage the day-to-day operations of the business, and shareholders will retain significant equity ownership positions.
Dattilo, a 37-year automotive industry veteran, joins the company’s board of directors as non-executive chairman. He formerly served as chairman, president, and CEO of Cooper Tire & Rubber.
Prior to his leadership at Cooper Tire, Dattilo spent many years in senior positions with Dana Corp., including his last position as group president of Global Sealing and Distribution. He is also chairman of the board for Harris Corporation, a Fortune 500 information and technology company, and a director at Haworth Inc.
“We have enjoyed tremendous growth over the past few years as dealers nationwide have recognized the unique value of owning a reinsurance or risk transfer company managed by our company,” said Burke. “We have found the ideal partner in Frontenac due to their strategy of working with seasoned executives, their patient capital approach, and their track record of successfully growing closely-held enterprises like ours.”
Ron Kuehl, principal at Frontenac, added, “Auto dealers have relied more and more upon financial products and other services in order to maximize the success of their operations. Portfolio Group is unmatched in the industry for high service levels and the degree of ownership and control it provides to its dealer clients. We believe this will continue to be a winning formula and look forward to working with Portfolio Group’s leadership to grow their national presence and to take advantage of new opportunities in the marketplace.”