Aftermarket truck and trailer parts distributor FleetPride has been sold to U.S.-based TPG Capital, one of the largest private equity investment firms globally, for more than $1 billion.
Bahrain's Investcorp has closed on the previously announced deal. U.S.-based TPG has a history of turning around retailers like U.S. fashion house J. Crew. Some of its other North American holdings include well-known names such as Neiman Marcus, MGM and Burger King.
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., and Nexeo Solutions (formerly Ashland Distribution), a global chemicals and plastics distribution company.
"We welcome our new partner, who shares our commitment to superior customer service and continued growth in the markets that are essential for the country's economic stability," said W.M. McGee, chairman and CEO of FleetPride, in a statement. "TPG's vision for expansion through acquisition and greenfield opportunities will enable FleetPride to better serve our existing customers as we aggressively grow our national footprint."
Investcorp touted the growth FleetPride has experienced under its management.
"FleetPride represents the type of core, mid-market corporate investment that we typically target in the U.S.," says Steve Puccinelli, managing director at Investcorp. "We worked closely with FleetPride's management team from a very early stage in our investment to successfully implement strategic growth plans, thereby enhancing the company's operations."
FleetPride is now the largest truck and trailer parts distributor in North America, with a presence in key commercial and economic hubs throughout the United States.
Since its acquisition of FleetPride in 2006, Investcorp has supported 31 different add-on acquisitions by the company, strengthening its cross-country supply chain and adding total acquired sales of over $270 million. Investcorp helped increase FleetPride's branch count to 248 with operations in 45 U.S. states.
Investcorp's initiatives increased the company's EBITDA from $52 million at the time of purchase in June 2006 to over $100 million forecasted for 2012, helping generate a net return of more than 200% for investors.
