Parts Town, the US-based OEM spares giant and parent company of the UK’s First Choice Group, is recapitalising the business after attracting new investors.
The company confirmed that Los Angeles-based growth investment firm Leonard Green & Partners has made a “significant investment” in the company.
Existing investor Berkshire Partners will retain its majority stake in the company, reinvesting alongside the Parts Town management team and Leonard Green.
Parts Town said the investments will enable it to accelerate innovation across its supply chain, distribution and ecommerce operations while further investing in its team to drive sustained high growth.
The transaction will also support the company’s rapid international expansion and its vision to extend into other mission critical parts categories including residential appliance parts, HVAC parts and laundry parts.
Steve Snower, CEO of Parts Town, said: “We are thrilled that Berkshire Partners has reinvested in Parts Town and will continue to partner with us for years to come. We are also incredibly excited to welcome Leonard Green & Partners to the team.
“We have huge growth ambitions and the combination of Berkshire and Leonard Green positions us to rapidly scale and further differentiate. We are committed to accelerating innovation, providing a unique customer experience, and acting with complete integrity. We are delighted to have partners who share both our values and our ambition.”
Jonathan Seiffer, senior partner at Leonard Green, said the business invests in companies “that win with people, have a differentiated culture and are market leaders with multiple ways to grow”.
He commented: “[Parts Town’s] customer-first mission and employee-centric values perfectly align with what we believe at Leonard Green.
“We have admired Parts Town for a long time and are excited to be partnering with Parts Town management and Berkshire Partners to support the next phase of the company’s growth.”
Parts Town has grown from five team members in 2004 to over 2,500 today, with over $1bn annual revenue, and has been named to the Inc. 5000 list of fastest-growing US companies for 13 consecutive years.