Private investment firm TPG has entered an agreement to acquire heavy-duty truck and trailer parts supplier FleetPride from Investcorp. The transaction is expected to close in the fourth quarter and is subject to customary conditions, including receipt of applicable regulatory approvals.
Terms were not disclosed.
“We are extremely excited to enter the next phase of our growth strategy with TPG and I am very proud of the teamwork and effort our FleetPride employees across the country have demonstrated in the execution of this strategy,” said W.M. McGee, chairman & CEO of FleetPride.”"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. 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.”
TPG’s portfolio includes American Tire Distributors, one of the largest tire wholesalers in the U.S. with 104 distribution centers in 45 states, and Nexeo Solutions, a global chemicals and plastics distribution company.
“As the leading independent distributor of aftermarket truck and trailer parts in North America, FleetPride has a strong reputation for its broad inventory, parts availability and customer service,” said Kevin Burns, partner at TPG. “The company has demonstrated an impressive track record of growth, which we hope to continue to support in the future.”
The transaction is being financed through 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, TPG said.
Deutsche Bank Securities Inc. and RBC Capital Markets served as financial advisors to TPG in the transaction. Bank of America Merrill Lynch, Citi and J.P. Morgan acted as joint financial advisors to FleetPride in connection with the transaction.