EQT to target trade players in Kfzteile24 auction

Gustav Hoejmark-Jensen , Joao Grando and Cristiano Dalla Bona
22 July 2022

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EQT is in a process to exit portfolio business Kfzteile24, a German car parts e-retailer, with Houlihan Lokey guiding on the sale, four sources familiar with the situation said.

The sellside is mainly targeting strategic buyers, two of the sources said, with one of them adding that information memoranda (IM) in connection with the process, dubbed Project KITT, had been distributed to prospective buyers in May.

The business is being marketed off EUR 19m EBITDA and around EUR 200m revenues, budgeted for 2022, two of the sources said.

The IM refers to five strategics directly, namely Japanese automotive part manufacturer Bridgestone Corporation, US-based LKQ, Dutch Stellantis and French automotive focused firms Mobivia Groupe and Parts Holding Europe (PHE), outlining potential synergies with the companies, one of the sources said. Many private equity players have shunned exposure to the automotive sector lately, added a sector banker.

Kfzteile24 was acquired by EQT Mid Market Fund in 2015 from founders Matthias Kieper and Torsten Hainke, who both stayed on as shareholders at the time. Blue Corporate Finance acted as financial advisors to the founders at the time of the sale. In 2016, private equity firm Project A acquired a minority stake for an undisclosed amount.

Founded in 2001, Kfzteile24 is one of the leading full-range online retailers for automotive spare parts and accessories in Germany and employs around 600 people, according to its website. It runs online shops kfzteile24.de and autoteile24.de, which serve the German and Austrian markets, as well as its own brick and mortar branches and workshops. It is also active in France, Denmark and the Netherlands under the carpardoo brand.

The digital platform caters to both private and commercial customers, and in May 2022 the company decided to focus predominantly on commercial clientele. The range includes over 2.5 million products, including original spare parts from well-known brands, according to the website.

EQT and Houlihan Lokey both declined to comment. Kfzeteile24 referred to EQT. Project A did not respond to requests for comment.