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MPE Partners Announces Strategic Investment in 3D International - MPE Partners

MPE Partners Announces Strategic Investment in 3D International

JULY 19, 2022

Cleveland, OH, and Boston, MA – MPE Partners (“MPE” or “Morgenthaler Private Equity”) along with portfolio company Hi-Tech Industries (“Hi-Tech”), today announced a strategic investment in 3D International, LLC d/b/a 3D Car Care (“3D” or the “Company”), a vertically-integrated designer and manufacturer of premium vehicle care and detailing products sold through professional and consumer channels. 3D offers a comprehensive line of innovative and highly efficacious compounds, polishes, waxes, ceramic coatings, liquid chemicals, and hard good accessories serving customers across the United States and over fifty countries worldwide.

MPE partnered in the transaction with 3D’s founder, Tunch Goren, as well as its management team, led by President Juan De Rada. Nathan Iverson, Chief Executive Officer of Hi-Tech, said, “Tunch and his team have established 3D as an industry leader in product innovation and abrasive technology coupled with a go-to-market strategy that appeals directly to the most highly skilled paint, body, and equipment and detailing professionals as well as discriminating enthusiasts. Hi-Tech is excited to welcome 3D as a sister company in the MPE portfolio.”

Constantine Elefter, Principal at MPE, added, “3D is well positioned for organic growth by capitalizing on historical investments made in branding, new product formulation, omni-channel sales development, and manufacturing capabilities. We are thrilled about extending the foundation laid by Tunch to reach new professional customers and do-it-yourselfers in combination with Hi-Tech.”

Tunch Goren noted, “We are enthusiastic to join with MPE and Hi-Tech and are confident that this strategic partnership will further accelerate 3D’s growth trajectory and continued evolution.”

Apogem Capital provided financing to support the transaction. Jones Day served as legal advisor to MPE. Parcrest Advisors acted as the investment banking advisor to 3D.

About 3D International
Headquartered in Santa Clarita, CA, 3D is a leading manufacturer of car care and detailing products. 3D’s comprehensive line of innovative and high-quality compounds, polishes, ceramic coatings, cleaning supplies, and accessories serves customers across the United States and over fifty countries worldwide.

About Hi-Tech
Headquartered in Farmington, MI, Hi-Tech is a leading provider of innovative car care accessories, appearance liquids, and specialty aerosols. With over 2,300 SKUs sold across eight highly-recognized brands, Hi-Tech is the preeminent one-stop solution in the detailing and reconditioning market.

About MPE Partners
MPE Partners (“MPE” or “Morgenthaler Private Equity”) seeks to be the preferred partner for entrepreneur- and family-owned companies. Based in Cleveland, OH, and Boston, MA, MPE invests in profitable, lower middle market companies with transaction values up to $250 million. MPE has two primary target investment areas: high-value manufacturing and commercial & industrial services.
 
Can I have a cliff note version of all this

I "think" it means a company with alot of money sees a chance to buy into something

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3D’s response on the ceramic wash

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Adds over time and not immediately, yeah that corporate purchase is paying dividends already

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In all honesty...is 3d really that stupid to put out a response like that

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I think the people [us] are seeing and reading THIS and [we] will not be fooled by this, good luck 3D️️

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I wash with Meguiar's Hybrid Ceramic Wash and get crazy beading as I hose it off. I have been enjoying their soap alot since using it.
One would think 3D's soap would be a very similar makeup... I guess not.
 
The response makes no sense.

In order for it to "build up over time" would mean whatever ceramic product is in there is durable enough to survive until the next wash. First, I highly doubt they have anything in their soap durable enough to last more than a weak or two. Second, they are essentially admitting to the fact there is a such a minute amount of ceramic product in the soap it's unnoticeable unless you use it a lot.

If there was any meanfingful ammout of ceramic or polymers to change the water beading of the surface, you'd be able to tell right away.
 
Just my take but it seems 3D was just another little fish in the pond and they wanted to integrate with someone who had a distribution set up. This seems like a shift from a niche market to a commercial market. I'm guessing it will end up like Meguairs with multiple lines that are close but marketed toward different market segments, which means some products will probably get watered down performance.
 
Up here at CT stores they are discontinuing it. I called Meguiars and asked if it was getting cut, and was told yes. Well I like this product, and so with the clearance sales up here I have grabbed a few of them at great prices. It really is a great product, I think anyway. They designed a wash mitt to work with it. It may sound like marketing, but with the two sides of the mitt, wash one side, flip and spread with the other. And it works even better than in the above video. Markus Kleis did a video on it, very good content as always from Markus. And shows how great the product is.
 
Silly Rabbit said:
Also, please do ask about it. I talked on the phone to Megs staff and was told it is getting cut as well as their Hybrid Paint Coat. Would be interesting to hear what they tell you and if they have some replacements coming in mind.
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I don't know how long you've been at this, for Meg's, if a product doesn't sell, they drop it, end of story. I didn't watch the whole video, but I saw two caps on the bottle, and for most people in the market this was targeted to, who can't be bothered to even measure out a regular wash, a wash you have to mix two parts together was never going to fly.

I know this sounds stupid but I think it's all about shelf space, they only get a certain amount of space in the "planogram" there at WalMart/Target/AutoZone etc., and if it doesn't sell they drop and come up with another product they think may sell. I wouldn't hold my breath that they will come out with a "different" ceramic wash and wax.
 
Setec Astronomy said:
I don't know how long you've been at this, for Meg's, if a product doesn't sell, they drop it, end of story. I didn't watch the whole video, but I saw two caps on the bottle, and for most people in the market this was targeted to, who can't be bothered to even measure out a regular wash, a wash you have to mix two parts together was never going to fly.

I know this sounds stupid but I think it's all about shelf space, they only get a certain amount of space in the "planogram" there at WalMart/Target/AutoZone etc., and if it doesn't sell they drop and come up with another product they think may sell. I wouldn't hold my breath that they will come out with a "different" ceramic wash and wax.
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Oh I've been using Megs a long time. I have seen the products that niche people like and the masses overlook and then get dropped. And that is the issue, like you stated. A product doesn't sell, only to the niche customers, and by $$$ it kind of has to drop. For alot of us it's the product and experience, for companies it is a business, so it's all about the money, whatever the company is. Alot of good products/cars/drinks/etc have fallen over the decades.
 
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