Investcorp is selling heavy-duty truck and trailer parts retailer FleetPride Inc. to global investment firm TPG.
FleetPride, based in The Woodlands, Texas, was established in 1999 as a result of the merger of Quality Distribution Service Partners and HDA Parts System Inc. It was bought by Bahrain-based Investcorp in 2006.
Under Investcorp's ownership, FleetPride's branch count has increased by 93 new branches to a total of 248 branches nationwide. During that same period, Investcorp has supported 31 different FleetPride add-on acquisitions, strengthening the company's cross-country supply chain, and it now has operations in 45 states.
TPG has extensive expertise in industrial distribution and the vehicle aftermarket sector in particular. Its portfolio companies include American Tire Distributors, one of the largest tire wholesalers in the U.S. with 104 distribution centers in 45 states, and Nexeo Solutions (formerly Ashland Distribution), a global chemicals and plastics distribution company.
The transaction has fully committed financing, consisting of a combination of equity to be invested by TPG and debt financing to be provided by certain affiliates of Deutsche Bank Securities Inc., Bank of America Merrill Lynch, and RBC Capital Markets.
The transaction is expected to close in the fourth quarter of 2012 and is subject to customary conditions, including receipt of applicable regulatory approvals. Terms were not disclosed.