Gas Station TV Acquired By Detroit PE Firm

June 3, 2014 by Dave Haynes

Michigan-based Gas Station TV (aka GSTV) has been acquired another Michigan company, Detroit-based Rockbridge Growth Equity, as well as a group of smaller investors.

The deal gets special attention because the big name involved is Dan Gilbert, who has made a serious fortune founding and growing Quicken Loans. Gilbert has pumped a lot of money into Detroit to get the troubled city back on its feet.

GSTV bills itself as America’s No. 1 video network at the gas pump, with 50 million monthly viewers. GSTV has grown its gas station network from a five-station pilot in Dallas, says the news release, to more than 2,600 stations in 42 states. The company has increased its revenues 35 percent annually since 2009.  In addition, GSTV has tripled its advertiser base and counts numerous Fortune 500 companies in the automotive, retail, consumer packaged goods, and personal finance industries among its clients.

Rockbridge was founded in 2007 by partners Brian Hermelin, Kevin Prokop and Gilbert. The firm invests in companies that specialize in financial and technology services, as well as digital media and consumer-direct marketing.

“Investing in an industry-leading and growing company like GSTV is a natural fit for Rockbridge,” said Prokop, who also serves as managing director.  “GSTV’s management team have proven video at the pump to be a successful media growth category, and GSTV has emerged as the clear leader in the space.” GSTV CEO David Leider keeps his desk, as does Stephen Kuehn, CFO and COO, and Mo Alcaptan, Executive Vice President.

The deal announcement does not include any dollar numbers or other terms. It comes a few months after the OTHER gas station guys, Outcast Media, was acquired by gas pump maker Gilbarco.