PE-backed companies team up to buy H2's Unipart

Ellie Pullen
24 July 2014

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HgCapital-backed Parts Alliance has teamed up with Andrew Page, backed by Endless and Phoenix Equity Partners, to acquire part of Unipart Automotive, an H2 Equity Partners portfolio company that has entered administration.

The two businesses will split some of the assets owned by car parts supplier and garage owner Unipart, with Parts Alliance taking over 12 branches and Andrew Page acquiring 21 of Unipart's total 200 branches.

Overall, around 350 jobs will be saved while the bulk of Unipart's workforce – around 1,200-1,300 – will be cut.

Unipart has been holding talks with potential buyers over the last few weeks including turnaround houses Better Capital and R Capital, according to reports.

H2 acquired a 50.1% stake in Unipart in October 2011, according to unquote" data. The company's previous parent, Unipart Group, held onto a 49.9% shareholding. At the time of H2's acquisition, Unipart employed 2,100 people and generated revenues of more than £180m.

Earlier this month, Andrew Page rejoined Parts Alliance as a strategic member after a six year absence, bringing the latter firm's branch network to 248 and increasing its collective turnover to more than £475m.

HgCapital acquired a minority stake in Solihull-based Parts Alliance in August 2012.

Phoenix acquired Andrew Page in March 2010 for an enterprise value of around £125m. The firm backed the business via its £375m Phoenix Equity Partners 2006 fund, according to unquote" data. In July 2012, Phoenix provided Andrew Page with additional capital for the acquisition of Camberley Auto Factors.

In May this year, Endless took a 50% stake in the business, with Phoenix retaining the balance. The Leeds-based business generated around £166m in turnover last year.

Company
Oxford-headquartered Unipart is a supplier of car parts, as well as workshop and garage equipment. Prior to falling into administration, the business had a network of 200 branches under the Unipart Automotive, Partco Autoparts and Express Factors brands.

People
Peter Sephton is the CEO of Parts Alliance, while Jim Sumner is the executive chairman of Andrew Page.