Fenix Parts acquires Green Auto, Classic Collision to be bought by TPG Capital
By onAnnouncements | Market Trends
Fenix Parts, a recycler and reseller of OEM automotive parts, has completed its acquisition of Green Auto Parts & Recycling’s assets in Sun Valley, California.
Edgar Akopyan will join Fenix Parts as the director of business development for Southern California.
Green Auto is a full-service automotive recycler in the Los Angeles market. This is Fenix Parts’ first acquisition in California and brings Fenix’s location count to 26 full-service and five self-service locations.
“This acquisition establishes Fenix’s footprint on the West Coast with a location strategically servicing the Los Angeles market,” said Bill Stevens, Fenix Parts CEO, in a news release. “The L.A. market has one of the largest MSAs and highest vehicles per household in the U.S. We expect to expand our West Coast geographic reach with additional acquisitions, increasing both full-service production capacity and customer delivery networks.”
As a publicly traded company, Fenix Parts had dreams of being a “strong No. 2” to LKQ in 2019 but ran into financial and reporting difficulties. It was eventually delisted from NASDAQ and sold on the “Pink Sheets” — speculative, high-risk stocks not traded on traditional major stock markets.
Terms weren’t disclosed when Stellex Capital Partners’ affiliates closed the sale in April 2018, but Fenix said in February 2018 it had accepted an offer of $8.1 million, with Stellex paying 40 cents a share while taking on $33 million in debt and $7 million in other liabilities. At the time, shareholder approval was pending.
In other market acquisition news, TPG, a global alternative asset management firm, announced Wednesday that it had signed a definitive agreement to acquire Classic Collision, a national multi-store operation (MSO).
TPG Capital, the U.S. and European private equity platform of TPG, will acquire the business from New Mountain Capital, according to a news release from the companies. Classic Collision’s management team will remain invested in the company. Terms of the transaction weren’t disclosed.
“Today’s announcement is an exciting milestone for Classic Collision and a great testament to the strength of our team and our collective commitment to providing the highest quality service with integrity,” said Toan Nguyen, CEO of Classic Collision, in the release. “TPG shares our vision, and I believe they are the right partner to help us take Classic to its next level. I also want to thank the New Mountain team for their tremendous support as we’ve grown our platform.”
Classic Collision has 262 locations in 16 states.
“Toan and his team have grown Classic into a leading collision repair platform with best-in-class customer satisfaction, strong insurance partner relationships, differentiated manufacturer certifications, and a proven acquisition and integration playbook,” said Paul Hackwell, TPG partner, in the release. “We are excited to partner with management to grow the company’s market leadership while continuing to empower the distinct culture and passion for problem-solving that distinguishes Classic.”
The transaction is expected to close in Q2 2024. Goldman Sachs & Co. acted as exclusive financial advisor to Classic Collision and New Mountain Capital, and Kirkland & Ellis provided legal counsel. BofA Securities acted as financial advisor to TPG, and Debevoise & Plimpton provided legal counsel.
“Since our initial acquisition, Classic has accelerated investments in people, operations, and innovation for the benefit of its customers,” said Ricardo Gonzalez, New Mountain Capital managing director, in the release. “We thank Toan and the management team for a successful partnership in building a leading, national collision repair platform.”
Robert Mulcare, New Mountain Capital managing director, added “Toan’s vision and ambitions for Classic and the future of auto body repair are differentiated, and we believe there is a bright future ahead for the business.”
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