Kadel’s Auto Body is on the move throughout the Great Northwest. The company has recapitalized itself to obtain additional investment funds earmarked for pending expansion endeavors.

Founded in 1954, Kadel’s has 12 shops throughout Oregon, Washington and Idaho along with a corporate headquarters in Tigard, Ore. It is the 10th largest independently owned collision repair business in the United States, according to marketing manager Kerry Glass, who says more locations are being pursued.

The recent outside investment transaction has “brought us the ability to bring our company to the next level,” he says.

“We have lots of opportunity for expansion right in our backyard,” Glass tells ABRN. Oregon, Washington and Idaho are each experiencing ongoing population growth and creating new neighborhoods in need of additional body shop services.

“There are lots of new pockets of development that we can’t reach” within the existing Kadel’s marketing spheres of 5 to 10 miles per location, he said. Added sites are being pursued either through acquisitions of existing businesses or building new facilities from the ground up. Details have not been disclosed.

“We’ve been stagnant for about the past year-and-a-half,” he says, referring to the latest expansion in March of 2006 when Kadel’s purchased an existing shop in North Salem and remodeled the structure.

The newly renovated facility, equipped with “cutting edge repair technology,” has transformed the operation “from old and tattered to an opulent and rich environment,” says shop manager Bob Bachmeier. “The customers and surrounding businesses enjoy the new look. The customers love this location because it is close to where they work and live and they don’t have to commute into South Salem to get full-service collision repair.”

Glass said the new investment dollars will drive similar projects. “We’re ready to expand, so it’s a timely transaction.”

The recapitalization comes with the assistance of KCB Management Inc., a family-owned investment firm based in Pasadena, Calif.

Kadel’s current management team has maintained “a significant equity stake” in the body shop chain, retaining operational autonomy and day-to-day management control as KCB provides added funding.

“Their mission is not to run the company; their mission is capital investment,” says Glass, noting how the arrangement between the two entities is “a good fit” for both parties. “This is the result of a good year’s search and planning for the most effective way for us to expand.”

“We are excited about this partnership,” says Don Braden, Kadel’s president. “Our management team will be able to continue to operate the company just as we do today. Having KCB as a partner will provide us with additional financial expertise and capital to continue expanding our business.”

KCBs other holdings include HomeUSA Warehouse, a retailer of discount furniture in the Northwest, Salt Lake City and Phoenix markets; 49 skilled nursing facilities located in eight states and a significant portfolio of retail shopping centers and multi-family housing.

“They look for companies like ours where you have a good business model and a good track record,” according to Glass.

“Toby Wiltse, Don Braden and the Kadel’s management team have built a strong company providing quality repairs and customer service; we are proud to be associated with them,” says KCB president Harvey Knell.

“KCB is a long-term, control investor in growing small- to medium-sized businesses. Our long-term investment perspective and commitment of personal capital rather than third-party capital differentiate us from traditional private equity firms,” Knell says. “We offer sellers significant liquidity today while providing long-term continuity to their businesses. This philosophy allows KCB to build strong relationships with management and nurture solid growing portfolio companies without the pressures of a short-exit timeframe.”