Solihull-based automotive aftermarket business The Parts Alliance is poised for growth after reaching an agreement for investors HgCapital to acquire it.
The acquisition of the firm, which also has a central warehouse in Smethwick, was completed on Friday 4 April.
The deal sees Peter Sephton retained as chief executive, who pledged to drive the enhanced business forward with “quick decision-making” and “best in class systems and practices”.
Parts Alliance members trade under local brand names and are organised into the Western Alliance and the Eastern Alliance.
The other member companies (BBC Superfactors, BMS Superfactors, Car Parts & Accessories, Dingbro, Mill Autoquip, Motex and Qualvecom) become associate members.
They will continue to trade as independent businesses and were not part of the acquisition, though remain fully involved in the company’s activities with representation on the board.
At the same time Central Auto Supplies will leave the group and has been granted a six-month notice period.
Mr Sephton said: “From the outset we and our investors, HgCapital, recognised the value and potential of The Parts Alliance as a leading industry organisation.
“This further investment provides scope for enhancing performance further through a more dynamic and unified operating model.”
“This will see us able to deliver even greater value to our members, suppliers and customers, both national accounts and, through our members, independent garages.
“The Parts Alliance is already one of the leading automotive buying and distribution groups in the UK and Ireland and we confidently believe that we can be even better.”
He added: “It is important to underline that although we fully intend to enhance and revitalise elements of the operation, The Parts Alliance will very much remain a consultative business group at its heart, operating with joined-up commercial thinking.
“This deal is a game-changer not just for The Parts Alliance but for the aftermarket. There is much change and uncertainty in the marketplace.
“But here we have an organisation that is powered for growth with HgCapital behind it, expert investors with a £2 billion fund and a heritage of seeking out and backing industry champions.”
Parts Alliance chairman and founder Steve Fulford, who was central to negotiations over the past year, is stepping down but will continue to advise the board.