Investcorp seals $1bn FleetPride exit to TPG

The Bahrain-based investment group has sealed its third exit of a busy year that has also seen it make seven new private equity investments, excluding bolt-ons.

Investcorp has bagged a return of more than 2.1x following the sale of truck and trailer parts distributer FleetPride to US buyout firm TPG for over $1 billion, it said in a statement. The deal also provides an exit for Ridgemont Equity Partners, which invested alongside Investcorp.

The company grew earnings before interest, tax, depreciation and amortisation from $52 million when Investcorp bought the business for $500 million in 2006, to more than $100 million (forecasted) this year. Investcorp oversaw 31 bolt-on acquisitions to strengthen the company’s pan-US network, which now stands at 248 branches (up from 155 in 2006) in 45 US states. Investcorp claims it is now the largest truck and trailer parts distributor in North America.

Steve Puccinelli, managing director at Investcorp and head of corporate investment for North America and Europe, said: “When we acquired FleetPride in 2006 we were keenly aware of the company's growth potential. In partnership with management, we were able to execute our strategic plan to grow the company organically, effect accretive acquisitions, as well as streamline operations to enhance FleetPride's economies of scale in spite of the 2008 global recession.

“FleetPride represents the type of core, mid-market corporate investment that we typically target in the US. We worked closely with the management team from a very early stage to successfully implement strategic growth plans,” he added.

Bank of America Merrill Lynch, Citi and JPMorgan co-advised on the transaction. BoAML ran the auction process, which took about a month, sources said.

The deal is Investcorp’s third exit this year, following an initial public offering of Fleetmatics on the New York Stock Exchange in October, and the sale of Redington International Holdings in February.

With additional reporting by Yolanda Bobeldijk