Private equity firm HgCapital has sold Parts Alliance, a UK automotive aftermarket parts distributor, to Canadian distributor Uni-Select for a transaction value of £205 million.
The sale is the thirteenth realisation from HgCapital’s 6 fund and delivers a 2.0x investment multiple and a 19% gross IRR. The fund has now delivered overall realised returns of 2.3x and a 24% gross IRR, returning in cash 130% of the original investment made.
The Parts Alliance sale follows the successful exits of Zenith and QUNDIS earlier this year.
Martin Block, Partner at HgCapital, said: “We are delighted with the sale of this very special business to Uni-Select. They will be a fantastic partner for the next phase of Parts Alliance's continued growth and development. As a buy and build in a fragmented and dynamic sector, our management team were able to create a business of scale and real capability through their drive, professionalism and determination. Parts Alliance brings together a high-quality group of distinct brands with a common culture and local identity.”
HgCapital initially invested in Parts Alliance in August 2012. During the investment period the business expanded through a series of HgCapital-led acquisitions to create a broader group of thirteen parts distributors, ten of which are owned by Parts Alliance, with a combined group turnover of around £450 million.
The enlarged group is now one of the largest players in the sector and its customers range from independent garages to multi-branch workshops and fast-fits. They are served by a fleet of over 1000 vehicles and more than 2900 staff.
Peter Sephton, CEO of Parts Alliance, said: “This has been a fantastic journey, building a sector leader in just over four years with 10 acquisitions and driving above average organic growth.”
Henry Buckley, President and CEO at Uni-Select, said: “We are excited to establish a third growth pillar in the large UK parts aftermarket, one of the most fragmented in Europe, with significant potential for consolidation. Parts Alliance is a great organisation, with a market leadership position, a proven growth platform and an experienced management team that has demonstrated its ability to drive profitable growth both organically and through acquisitions. Our two companies are a perfect fit in terms of business profile, customer focus, entrepreneurial culture and commitment to people development.”