Investcorp to sell truck and trailer part distributor, FleetPride

9 Nov 2012

Investcorp, the international alternative asset manager, today announced that it has entered into an agreement to sell North America’s largest distributor of truck and trailer parts, FleetPride, to TPG. Investcorp, along with its minority partner Ridgemont Equity Partners, acquired FleetPride in 2006.

FleetPride was established in 1999 as a result of the merger of Quality Distribution Service Partners and HDA Parts System, Inc. Since then, FleetPride has grown to become an active participant in the $22 billion U.S. truck and trailer part aftermarket, and is now the largest truck and trailer parts distributor in North America with a presence in key commercial and economic hubs throughout the U.S.

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, with total acquired sales of more than $270 million. With nearly 3,000 employees, FleetPride now boasts an expansive geographic footprint in the U.S. with operations in 45 states.

Steve Puccinelli, Managing Director at Investcorp and Head of Corporate Investment for North America and Europe said: “When Investcorp acquired FleetPride in 2006 we were keenly aware of the company’s growth potential. In partnership with management, we were able to execute our strategic plan to grow the company organically, effect accretive acquisitions, as well as streamline operations to enhance FleetPride’s economies of scale in spite of the 2008 global recession. This exit is a testament to the efforts of the Corporate Investment team at Investcorp, and reflects the value we strive to deliver for our investors and each of our portfolio companies alike.”

Mr. Puccinelli went on to say: “It has been a pleasure to support and work alongside FleetPride’s management over the past six years, and I congratulate them on having grown the company so successfully.”

Bank of America Merrill Lynch, Citi and J.P. Morgan co-advised on the transaction.