Mexican private equity fund manager Alta Growth Capital has announced the exit of Mexican trailer manufacturer Fruehauf in a sale to Fultra, a Mexican conglomerate. This represents Alta’s first exit of its Fund II.
(Press Release) Alta Growth Capital announced that it completed the sale of Fruehauf, the leading trailer manufacturer in Mexico, to Fultra, a highly recognized Mexican conglomerate focused on the heavy-duty truck industry. This is Alta’s first exit from its second fund which helps capture a portion of the superior returns it is generating for its investors.
Fruehauf was founded in 1918 in Detroit after August Fruehauf, an Automotive Hall of Fame Inductee, created the semi-trailer and launched a new industry. Until 1997, Fruehauf was the leading semi-trailer manufacturer worldwide. Alta acquired Fruehauf in 2015.
“Together with the management team, we were able to surpass our goals for this investment,” said Alta Partner Javier García-Teruel. “Fruehauf saw a considerable expansion of its customer base, entered key markets, and generated significant cost efficiencies. Today, Fruehauf’s products are leaders in quality and customer satisfaction.”
During Alta’s investment, Fruehauf sales and EBITDA more than doubled and the 53’ dry van was relaunched and successfully positioned in the market. Fruehauf is today the leading semi-trailer manufacturer in Mexico and has successfully re-entered the U.S. market after 20 years of absence.
“It has been an honor to bring the Fruehauf brand back to the U.S., and to be a part of the amazing legacy that August Fruehauf started,” said Alta Partner Scott McDonough. “We are certain that Fultra will continue to support and grow the company and ensure that Fruehauf remains a leader in the semi-trailer industry.”
During its ownership, Alta brought in CEO Carlos Porragas to lead Fruehauf. Mr. Porragas was effective in transforming the company given his extensive senior leadership experience in related industries and track record of generating value. Together with Alta, Mr. Porragas reinforced key positions within the management team and revamped the company’s commercial strategy.
“It has been a pleasure being at the forefront with Alta in this great success,” said Mr. Porragas. “Together, we have pushed Fruehauf forward to a leading position in the Mexican trailer market. I look forward to continuing this success story under Fultra’s ownership”.
“Alta is definitely a best in class growth fund in the region that applied the right strategy and resources to successfully expand Fruehauf’s potential,” said Jorge Martinez, CEO of Fultra. “We are committed to continuing this legacy of success for years to come.”