HgCapital’s Parts Alliance has partnered with fast growing automotive parts business Andrew Page Ltd (AP) to acquire the business’s assets of Unipart Automotive, one of the UK’s largest suppliers of car parts and workshop consumables, following the announcement it had entered administration. The deal, which is for an undisclosed sum, means that HgCapital’s Parts Alliance will acquire a total of 12 of the former Unipart Automotive 33 branches, with Andrew Page Ltd to acquire the remaining 21 branches, securing 350 jobs.
The Parts Alliance is a central organisation for the UK automotive parts market based in Solihull, West Midlands. It employs over 60 people on behalf of its 12 member companies, who manage all aspects of their businesses from national sales and IT, to product management, marketing and central warehousing. This gives the group national strength whilst still providing a dedication and focus on local service to workshops and fitting stations across UK and Ireland. Annual group turnover stands at over £350 million and customers range from independent garages to multi-branch workshops and fast-fits.
The addition of the 12 Unipart Automotive branches and their experienced workforce will further broaden The Parts Alliance’s national presence, enabling it to better service its current clients, as well as provide access to new customers. This will facilitate HgCapital’s goals to grow gross margin through exposure to new and competitive suppliers and improve EBITDA margin by increasing productivity levels.
Simon Cottle, a Director on HgCapital’s Services Team, said: “The opportunity to add 12 fully staffed and operational sites to HgCapital’s Part’s Alliance branch portfolio, while also ensuring the continued employment of a large part of a highly skilled and professional workforce, was one we were keen to capitalise on and we are pleased to have been able to move swiftly to make this deal happen. The clear synergies the acquisition offers means that already steady revenue growth will receive an immediate boost. We look forward to working with our new employees to continue to grow the business into one of the largest players in the UK automotive parts industry.”
Peter Sephton, CEO of The Parts Alliance, said: ‘’This is a tremendous opportunity to expand our branch network, further service our national account business, and secure the employment of many talented Unipart Automotive Group employees. The Parts Alliance now has the largest network coverage of any UK automotive parts supplier, with 278 branches across the UK and Ireland.”