Thirteenth realisation from Hg6 Fund, delivering a c. 2.0x investment multiple and c. 19% gross IRR

Hg has returned over £1.5 billion to clients over the last twelve months with eight exits and multiple portfolio re-financings since the Brexit vote

Third realisation by Hg in the last 5 months, delivering an aggregate investment multiple of 2.9x

Hg is pleased to announce that it has agreed the sale of Parts Alliance, a UK automotive aftermarket parts distributor, to Uni-Select Inc., a listed Canadian distributor of automotive refinish and industrial paint products and aftermarket parts, for a transaction value of £205 million.

Hg initially invested in Parts Alliance in August 2012. Over the course of the investment period, the group has expanded through a series of Hg-led acquisitions in the space, ultimately creating a broader group of thirteen parts distributors (ten of which are owned by Parts Alliance), with a combined group turnover of c.£450 million.  Customers range from independent garages to multi-branch workshops and fast-fits, and they are served by a fleet of over 1,000 vehicles and more than 2,900 staff across the group membership.

The enlarged group is now one of the largest players in the sector, which helped to materially increase Parts Alliance’s appeal to both European and North American buyers seeking a scale, platform asset to enter the UK aftermarket car parts sector.

The realisation of Parts Alliance represents the thirteenth realisation from the Hg6 Fund (2009), which has now delivered overall realised returns of 2.3x and a 24% gross IRR. The Fund has now returned in cash 130% of the original investment made. This sale follows the successful exits of Zenith (2.9x / 47% IRR) and QUNDIS (3.5x / 30% IRR) which completed earlier this year, and a number of further realisations from Hg6 are anticipated over 2017.

Martin Block, Partner, Hg, 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.  We wish both the team and the new owners every success for the future.”

Peter Sephton, CEO at Parts Alliance commented: “This has been a fantastic journey, building a sector leader in just over 4 years with 10 acquisitions and driving above average organic growth. I and our management team would like to thank Hg for all their support as I and our 2,900 colleagues look forward to continuing that journey with Uni-Select, helping build a great international auto parts business together with the Uni-Select leadership team.”

Henry Buckley, President and CEO at Uni-Select Inc. added: “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 organization, 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.”

Hg were advised by Baird and White & Case LLP.