Baird Capital Partners (BCP), the US-based buyout fund of Baird Private Equity, has said that its portfolio company American Auto Auction Group (AAAG) has acquired Texas Lone Star Auto Auction (TLSAA) based in Carrollton, Texas.

AAAG was established in early 2010 in partnership with industry veterans to execute an acquisition platform strategy in the whole car auction market.

Founded by the Dunning family in 2001, Texas Lone Star Auto Auction holds a weekly dealer consignment auction at its facility in Carrollton, Texas.

In early 2010, AAAG acquired two separate auction businesses, Charleston Auto Auction (Moncks Corner, South Carolina) and Rea Brothers Mid-South Auto Auction (Pearl, Mississippi).

Auto auctions create a transaction marketplace for finance companies, fleets, wholesalers, independent dealers, and franchise dealers to sell and purchase vehicles.

BCP partner Randy Mehl said the acquisition of Texas Lone Star Auto Auction fits nicely into AAAG’s strategy of acquiring well run independent whole car auctions.

"We continue to be excited about AAAG’s opportunities in the fragmented auction market. AAAG has a number of attractive businesses in the pipeline and we expect 2011 to be another busy year for our team," Mehl said.