Houlihan Lokey Advises Tough Dog

Transaction: Houlihan Lokey Advises Tough Dog

Houlihan Lokey is pleased to announce that 4 Way Suspension Products (trading as Tough Dog) has been acquired by Aeroklas Asia Pacific (Aeroklas), a subsidiary of Eastern Polymer Group (EPG). The transaction completed on 30 June 2022.

Founded in 1985, Tough Dog is a leading provider of vehicle aftermarket products, including a wide variety of shocks, steering stabilisers, springs, torsion bars, bushings, brake hose kits, and 4WD accessories. Tough Dog has built a reputation for providing high-quality products, with high levels of repeat customers and contracts with government and defence agencies. Tough Dog’s products are supported by an in-house research and development team with a pioneering approach to product innovation. Tough Dog has an established domestic sales network that includes agreements with major 4WD aftermarket retailers and long-standing relationships with major independent aftermarket distributors, wholesalers, and online retailers. Tough Dog’s international distribution network currently spans ~50 countries.

Aeroklas designs, manufactures, and distributes 4WD accessories and automotive parts. The acquisition of Tough Dog is the fourth significant purchase by Aeroklas in Australia since 2015 and adds to its growing portfolio of brands, which includes TJM, Flexiglass, and Bocar. Aeroklas is a member of EPG, which has been producing plastic automotive product accessories for more than 35 years.

Houlihan Lokey served as the exclusive financial advisor to Tough Dog’s shareholders and assisted in initiating, structuring, and negotiating the transaction on their behalf:

  • Houlihan Lokey conducted a high-touch, targeted marketing process in order to drive competitive tension and ensure transaction certainty.

  • Leveraging global sector expertise, Houlihan Lokey identified potential international strategic and sponsor buyers.

  • Houlihan Lokey facilitated diligence and assisted the shareholders with the assessment of bids.

  • Upon confirmation of the preferred party (and eventual purchaser of the business), Houlihan Lokey negotiated commercial terms of the deal and assisted with documenting the transaction via a share purchase agreement.

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