Euro Car Parts buys major rival from administrators
TAMWORTH-BASED Euro Car Parts has bought vehicle parts business Andrew Page from administrators in a deal that secures 2,000 jobs.
Andrew Page, which has large sites in Yorkshire, appointed administrators on Monday to complete a pre-pack deal.
Euro Car Parts is owned by US giant LKQ Corporation, which is valued at $10bn on the Nasdaq.
Administrators from PwC completed the pre-pack sale of 102 of Andrew Page’s 109 branches, its national distribution centre and corporate office. The administration affected Andrew Page and its associated companies Solid Auto (UK), Camberley Auto Factors and Colton Parts Company.
Euro Car Parts chief executive Martin Gray said he was “delighted to confirm that the future of the Andrew Page business has been secured”.
He added: “We remain committed to assuring that the iconic Andrew Page brand continues to thrive and will remain separate from Euro Car Parts, but will benefit from our UK infrastructure, inventory and the financial support from the LKQ Corporation.”
Private equity firms Endless and Phoenix Equity Partners invested in Andrew Page in March 2014 when the business was facing a cash crisis. They provided cash to enable the turnaround of the business.
However the effects of a mild winter last year and the pound’s weakness since the EU referendum vote created another cashflow crunch.
Jim Sumner, chairman of Andrew Page, who is standing down after the completion of the deal, said: “The strategic acquisition by LKQ recognises that Andrew Page is a strong business with a historic brand.
“We are pleased at the completion of the sale, which brings the business and its employees into a global group with more than $8 billion in sales.
“The investment also highlights the continuing attractiveness of British businesses for foreign buyers.”
Leeds-based Andrew Page is a major distributor of quality auto parts, workshop equipment, tools and diagnostics, primarily to independent garages.
Founded in 1917, the company had more than 2,000 full time and part time staff. It had sales of £192m in the financial year ending September 2015.
Mark Saunders, chief executive of Andrew Page, said: “This is a great deal for Andrew Page and its employees and puts us in a strong position for the future.
“We are looking forward to working with LKQ at an exciting time for the motor parts sector, which is undergoing consolidation throughout Europe.”
Andrew Page made a number of significant investments in the last financial year, including £1m in a new state-of-the-art telephony system, continued upgrades to its van fleet and new infrastructure at its national distribution centre in Markham Vale. Andrew Page also acquired the Solid Auto brand and business in March 2016.
