Private equity-led deal sees Midlands car part firms merge

PRIVATE equity firm HgCapital has expanded its car parts empire by buying Birmingham-based German, Swedish & French Car Parts (GSF) for an undisclosed sum.

HgCapital already counts Solihull-based The Parts Alliance as one of its investments and GSF will now join the network.

GSF is the UK’s largest independent distributor of car parts, originally established 38 years ago by chairman Stan West.

HgCapital is a UK based mid-market private equity firm. The addition of GSF’s 75 branches brings the total number in The Parts Alliance network to well over 300, giving the business increased coverage in the UK and Ireland.

GSF will continue under the chairmanship of West and his current management team. West will also join the board of The Parts Alliance.

West said: “This is a great new chapter in the evolution of the company that I founded in 1977.

“GSF’s merger with The Parts Alliance and HgCapital’s investment allows us to maintain our culture and brand and helps to create a true market leader.”

Peter Sephton, chief executive of The Parts Alliance, said: “This is a hugely significant acquisition which strengthens the product choice, service, value and expertise that we offer to our independent and national customers alike.

“GSF is a dynamic and successful business and I’m delighted to welcome Stan West and his 1,000 colleagues to our growing group. It’s a great match. We share the same values and both believe in building lasting relationships with customers and suppliers.

“This deal gives us unrivalled coverage: ensuring delivery on the ground to national and independent garages and workshops by people who really understand their local market.”

PwC in the Midlands acted as lead sell-side advisor to GSF on the deal.

Sarah Taylor, who led the PwC team, said: “As a family-owned business, GSF is a real Midlands success story.

“The company has created an iconic brand in the industry and developed a nationwide network of branches. Its growth into one of the UK’s leading players in the sector is testimony to the innovation and drive of Stan and his team.  

A Wragge Lawrence Graham & Co team, led by head of enterprise Andy Lawton Smith, provided long-standing client GSF with legal advice on employment, property, tax and corporate issues.