M&A Trends Affecting the Aftermarket with Rick Schwartz of Schwartz Advisors

As MEMA commemorates its 120th anniversary, it's an opportunity to reflect on the organization's profound impact on the automotive aftermarket industry. Founded on March 2, 1904, MEMA has evolved from a modest gathering of parts manufacturers in Cleveland, to a pivotal force in the global automotive landscape. In this episode of AMN Drivetime, sponsored by AISIN, Bill Long, president and chief executive officer, discusses MEMA's recent reorganization to better serve its members amidst industry transformations, reflected on his 11 years at MEMA and highlighted efforts in advocacy, sustainability, U.S. manufacturing competitiveness, and global trade expansion. • Introduction to MEMA's 120th anniversary, the founding of MEMA in 1904, and its original directors and members. (00:56)
• Expansion of MEMA's membership and the evolution of its purpose, highlighting key historical moments and contributions to the automotive industry. (02:56)
• Significant milestones in MEMA's history, including the introduction of credit reporting services, co-sponsoring the automotive service industry show, opening the DC office, and the formation of various market segments within MEMA. (04:53)
• Reflections on personal experiences and meaningful moments within MEMA over the past 11 years. (08:05)
• Discussion on the organizational changes in MEMA, aimed at better positioning the association for the future. (11:03)
• Future plans and focus areas for MEMA, including strengthening the supplier voice in Washington DC, addressing manufacturing competitiveness, and expanding global trade. (14:21)
• The "Lightning Round" of quick questions. (19:00)

Serendipity led Jon Owens, national sales manager for Epicor, to find the automotive aftermarket. Jon started out in sales for Timken Roller Bearing in Canton, Ohio, and describes finding the aftermarket after graduating from college as being in the right place at the right time. However, it wasn’t until he took over the NAPA Auto Parts account for Timken and started going to meetings, such as the AWDA Conference, where he truly recognized the power of volunteering for industry committees.

“You’re exposed to industry icons and you just can’t beat that kind of exposure,” said Owens, who just began his two-year stint as president of the Automotive Aftermarket Charitable Foundation (AACF), and arguably, has become an industry icon himself. “For me, it all began at AWDA. I was smitten with it and convinced that industry volunteerism benefited not only the industry, but also benefited me personally and whatever company I was going to represent.”

Since then, the list of organizations and committees Owens has served on is too long to publish here. Yet in his time at various automotive aftermarket companies, he has always been sure to remain involved outside of his 9-to-5 and has learned many lessons in business and life from the aftermarket professionals he has volunteered with. In this episode of AMN Drivetime, sponsored by AISIN, Owens delves into those lessons as well as his career trajectory from Timken to Epicor and describes his vision for AACF.

EPISODE OVERVIEW

• How Owens found the automotive aftermarket (0:58)
• His college football career and what he learned most from playing the sport at a high level (3:46)
• Owens’s mentors in the automotive aftermarket (5:06)
• His involvement in the automotive aftermarket organizations and what makes our industry different when it comes to service outside of your day job (10:48)
• His biggest lessons from his involvement in aftermarket committees and organizations (16:32)
• Owens describes his vision for AACF as president for the next two years (22:45)
• How you can help with the AACF’s mission today (29:54)

Jeff Koviak describes his “master’s degree” in the automotive aftermarket as owning two muffler shops in Port Huron, Michigan, for a few years. He was at the ripe, young age of 24 and this stint came after he served as a Walker Exhaust territory manager with Tenneco in Detroit.

Koviak calls that his first official job in the aftermarket, but in reality, his first experience in our industry dates back to his days in vocational auto mechanics class in high school. At the time, Koviak told his teacher he wanted to be involved in cars but didn’t want to work at a dealership or be a technician. That’s when his teacher reached out to Northwood University, where Koviak found a great fit in their automotive aftermarket management program. Since then, Koviak has spent his career in the aftermarket, navigating the changes Tenneco has experienced throughout the years.

Today, Koviak serves as vice president of sales, customer service and sales operations, the Americas, at DRiV, and in this episode of AMN Drivetime, sponsored by AISIN, he delves into how his role and the company’s strategies have shifted, especially when Tenneco merged with Federal-Mogul in 2018 and formed DRiV, as well as how the company has changed since being bought by private equity in November 2022. EPISODE OVERVIEW

• Koviak’s career trajectory in the automotive aftermarket (0:39);
• Koviak’s thoughts on the “transformational” merger of Tenneco and Federal-Mogul and how he played a role in combining the two businesses (8:01);
• Changes Tenneco/DRiV have experienced since being acquired by private equity and how the company is able to make quicker decisions (11:42)
• DRiV’s plans for 2024- new products and a focus on improved fill rates (15:07)
• Koviak delves into the strategic direction of some of Tenneco’s storied brands and what to expect from them in the future (19:32)
• The importance of giving back to the industry and Koviak’s continued connection to Northwood (25:31)
• Lightening Round questions⚡ (28:57)

Watch more episodes of AMN Drivetime here.

In its 81 years in business, MANN+HUMMEL has prided itself on being family-owned, remaining steadfast to its mission: separating the useful from the harmful with its filtration products. Yet, over the years, its products have evolved as the company has innovated to meet the demands of its customers. About 25 years ago, the innovation and heritage of MANN+HUMMEL attracted its current president and CEO to the company and he hasn't looked back.

Kurk Wilks joined the company in 1998 on the OE side of the business as a senior account manager. Then, he transitioned into sales and took on a global role managing the General Motors account. Over the years, he has held director roles in the areas of sales, engineering and operations on local, regional and global levels. Finally in December 2018, he was named president and general manager of the company's OE business.

"Then, in 2020 I was asked by our chairman to become the CEO. So it's unique. I'm the first American CEO of this German, family-owned business," he explained. "But I think with my 25 years of experience, the deep respect I have for our heritage of what it means to be family-owned and be technology driven, I'm able to take those assets with our people, our most important asset, and make something different for our customers to experience."

Today, MANN+HUMMEL calls itself the leader in filtration, as it continues to invest in R&D, engineering, digitalization and advanced technology.

"We use analytics tools, AI and other processes now to really bolt on and streamline how we run the business," he said. "But in the end, for me it's about reliability and trust that when customers use our product, it'll make their asset perform as desired and as needed." In this episode of AMN Drivetime, presented by AISIN, Wilks delves into:

• His first roles in the automotive aftermarket and what attracted him to MANN+HUMMEL (0:51)
• His career trajectory at the company (2:30)
• Experiences that have shaped his view on the business (4:18)
• How MANN+HUMMEL has benefitted from its expanded distribution strategy after opening a distribution center on the West Coast (8:16)
• The ways the company is innovating in filtration through digital solutions and the importance of its digital hubs (10:12)
• Additional opportunities for the company's growth (14:12)
• What he's seeing as the state of the automotive aftermarket with his role as vice chairman of MEMA (15:01)
• The Lightening Round ⚡

This episode is sponsored by AISIN. To watch more episodes of AMN Drivetime, click here.

When Mike Palm tells you he's a jack of all trades at CRP Industries, he's not lying. Just look at his resume. He started with the company in 1986 as a graduate of Shippensburg University, just outside of Harrisburg, Pennsylvania. He found a marketing assistant job at CRP through a newspaper ad. In the early days, he became involved in product development, digging into vehicles to look at parts that CRP could create. He also dipped his toe in cataloging, sales support and supplier development in CRP's early years.

"I even learned how to drive a forklift," Palm says laughing, recalling the memories of his various roles at CRP.

After 10 years of working his way up at the company, Palm asked himself, "What's next?" His marketing mastery led him to find a role at Berlitz, a global supplier of language instruction, cross-cultural training and other educational materials, as its director of worldwide marketing. There, he gained experience in consumer marketing, yet always kept in touch with his CRP colleagues. After a decade at Berlitz, Palm, as he describes it, was lured back to the aftermarket by Daniel Schlidge, president and CEO of CRP, who presented a future-looking vision to Mike and told him how he could play a role in developing it.

Since 2005, Mike has been a staple at CRP working his way up to vice president of sales and marketing, leading the company’s aftermarket product management efforts and ensuring that CRP remains a respected brand in the industry.

In this episode of AMN Drivetime, presented by AISIN, find out how Mike and his team are doing that by getting close to the customer and looking ahead at innovations the company will need to produce down the line.

In this episode, Mike shares:

• How he started at CRP Industries and his experiences working at the company in "the early days" (0:40)
• Why he decided to leave the automotive aftermarket and what brought back to CRP from this experience (4:26)
• Why he returned to CRP and why he "wakes up everyday enjoying what I do" (9:18)
• The way his role as vice president of sales and marketing has changed and how he deals with change management both at CRP and in the industry (12:22)
• How CRP's Innovation Council has spurred multiple product innovations for the company (15:09)
• The value that the Innovation Council has brought to CRP's supply chain (19:39)
• Big opportunities for CRP to serve the marketplace in the near future (24:13)
• The Lightening Round ⚡

AMN Drivetime is sponsored by AISIN. Find more episodes here: https://www.aftermarketnews.com/category/podcasts/amn-drivetime-podcast/

When you’ve worked for a company for more than 40 years, you certainly know “where the bodies are buried,” as they say. But more fascinating, you’re a walking history book, seeing the company through its ups and downs, successes and flops and stellar innovations that have defined the next generation of the aftermarket.

Jeff Kritzer, president and CEO of BendPak, is one of those guys.Kritzer started at BendPak, a California-based company best known for its car lifts and wheel service equipment, when he was a 20-something recent college grad. As he describes it, he found out about the job thanks to family connections: Owner Don Henthorn’s daughter was best friends with Jeff’s sister at the time. He knew Jeff was in search of a job, and Jeff soon started in the company’s shipping and receiving department. Thanks to his innovative thinking and hard work, Jeff worked his way up in the company, seeing through dozens of brands, products and industry firsts over the years.

In the latest episode of AMN Drivetime, sponsored by AISIN, Jeff delves into:

• His “rags to riches” career trajectory at BendPak (1:10)
• Advice and good business practices Jeff has learned from his mentors, including Henthorn (2:54);
• How BenPak’s product lines have evolved over time to meet market demand (4:52);
• How the BendPak name was born and its offerings for the aftermarket today (6:00);
• Innovations around BendPak’s CoolBoss product line (11:51);
• Why BendPak recently opened an industrial complex in Alabama and how it feeds into the company’s strategy (14:17);
• Potetial growth Jeff sees for BendPak and its aftermarket brands (15:51);
• Reasons why the company purchased a new California HQ and wants employees to come into the office each day (17:13);
• How EVs are affecting lifts and wheel service equipment (20:03)
• Rapid Fire Questions (22:23)

AMN Drivetime is sponsored by AISIN. Find more episodes here.

As a 30-plus-year automotive aftermarket veteran, Ted Hughes has seen change after change in the industry. He's experienced countless technological improvements. During his almost 24 years as head of marketing for MAHLE, he charged head-first into the digital era -- embracing digital media, e-commerce and a "data is king" mindset. Yet despite the evolution of the industry, one aspect has remained true: nothing beats the solid relationships that form long-lasting business partnerships and make this industry strong.

About a year ago, he joined the Auto Care Association as executive director of the Aftermarket Warehouse Distributors Association (AWDA) and also took on the role of senior director of community engagement for the association, putting his love for the industry and his expertise for creating industry engagement to work. Although challenges abound, Ted looks at them as opportunities.

In this episode of AMN Drivetime with Bill Babcox, presented by AISIN, Ted delves into:

• Making the change to association work and its biggest rewards (0:54);
• How he was fitted for skates at a young age and what playing hockey and other sports taught him that he takes into his career (3:13);
• Ted's career trajectory and how he found the automotive aftermarket (6:54);
• Shifts in the overall business that impacted Ted's roles and how he and his team addressed them (10:36)
• The future of AWDA (15:47);
• The importance of face-to-face interaction (18:39);
• Rapid Fire Questions (24:40)

AMN Drivetime is sponsored by AISIN. Find more episodes here.

The Schwartz name is synonymous with the automotive aftermarket. It started with Mort Schwartz, an engineer by training who served as chairman and CEO of four different automotive aftermarket companies from the 60s to the 90s. Mort's service to the aftermarket, including as a member and chair of various aftermarket committees, spans more than 40 years, and now his son, Rick, is following in his footsteps to make the Schwartz name a leader in M&A advising and business growth strategies in the industry.

Rick received his MBA from USC's Marshall School of Business, and while his father grew and ran companies in the aftermarket, Rick's career spans multiple industries working in management positions for the likes of Macy's, Nestle and The Upper Deck Company early in his career. He gained C-suite level experience as the COO of a health and fitness company before joining forces with his dad to create Schwartz Advisors, an M&A and growth consultant for companies in the automotive aftermarket.

In 2006, Schwartz Advisors was born, and since then, the firm has added 12 industry experts from different segments to consult on various deals and strategies. In this episode of AMN Drivetime, sponsored by AISIN, Rick delves into:

• The reasons why he initially studied international relations (1:00)
• Lessons he learned from working at large companies in different industries early in his career (1:44)
• How Schwartz Advisors was born (2:54)
• The breadth and depth of Schwartz Advisors' expertise (4:02)
• Trends in M&A in the macroeconomy and the automotive aftermarket (8:02)
• The types of business that are a good fit for the "buy-side" and "sell-side" of acquisitions (10:22)
• Lessons Rick learned from his father, Mort (12:42)
• Rapid Fire questions (14:18)

AMN Drivetime is sponsored by AISIN. Find more episodes here.

Michael Ceritano's resume includes an array of positions from around the aftermarket: marketing manager, car wash consultant, owner of an auto accessory business, aftermarket sales director and now COO. With a career spanning 30-plus years in the automotive aftermarket, Ceritano has used his industry expertise combined with his business savvy and willingness to learn new skills to grow GSP North America's business exponentially in the almost six years he's been with the company.

In this episode of AMN Drivetime, presented by AISIN, Ceritano describes how he worked his way up in the industry, the ways he has helped grow the GSP North America team and what he feels has been integral to the company's success.

Ceritano delves into:

• His forray into the automotive aftermarket with Chrysler (0:30)
• GSP's key product offerings and its history in North America (3:13)
• Why GSP has been "one of the most rewarding places" he has worked and how he has helped build the current team at GSP North America (5:36)
• The four P's that are driving factors of GSP North America's growth (9:37)
• The lessons he and his team learned during COVID with a majority of their production in China (11:32)
• Why GSP has launched value-added services like training for technicians who use its products (14:56)
• Rapid Fire Questions (16:11)

Find more AMN Drivetime episodes here: https://www.aftermarketnews.com/tag/amn-drivetime/

This episode is sponsored by AISIN. Learn more about AISIN here: https://www.aisinworld.com/

Upon celebrating his 80th birthday and 64 years in the automotive aftermarket, Jim Franco is as energized as ever about the business opportunities he sees in the market today. As president and CEO of Autologue Computer Systems, Jim has been in the software industry since the mid-80s and has seen a huge technological evolution–not only on the parts side but also the hardware and software side. While some may lament the changes that have been made, especially over a 64-year-career, Jim approaches it with gusto and believes others should, too.


While Jim boasts that he is building a “rocket ship” with the great people at Autologue, he is quick to acknowledge that the root of this industry is in relationships–buying and selling parts from your local shop and getting them delivered in 30 minutes or less.“Nobody can compete with that,” Franco says. “Amazon is trying to, but they don’t even come close.” In this episode of AMN Drivetime Quick Hits, sponsored by AISIN, Franco delves into:

• Reflections on his 80th birthday and how his business has evolved (0:46)
• His thoughts on the market today including technology and EVs (4:02)
• His plans for Autologue, including how he and his team are taking PartsWatch to a whole new level and building a “rocket ship” (6:06)
• The “Win the Day” Dashboard and why every auto parts distribution manager should use a tool like it (8:13)
• How Jim creates a culture of taking pride in your work at Autologue (10:32)
• Rapid Fire questions (12:53)

AMN Drivetime is sponsored by AISIN. Find more episodes here.