Code Hennessy & Simmons LLC (“CHS”) announced
today that it has made a majority equity investment in TruckPro,
Inc. (“TruckPro”). Headquartered in Memphis,
Tennessee, TruckPro is a leading independent distributor
of aftermarket parts and accessories for heavy-duty vehicles
with the leading market share in the 16-state region in which
it competes. CHS’ investment in TruckPro represents
a partnership between CHS, senior management of TruckPro
and the former majority shareholder, Cravey Green and Wahlen
Incorporated.
Through
60 branch locations and a centrally located distribution center
in Memphis, TruckPro serves a highly diversified customer
base of over 35,000 active customers. Its comprehensive product
offering of 22,000 SKUs from over 200 vendors covers every
major category of repair and maintenance parts for heavy-duty
trucks and other vehicles. Over 85% of TruckPro’s sales
volume is received at the central distribution center in Memphis
and redistributed to branch locations. Its centralized distribution
infrastructure differentiates TruckPro and results in superior
service with average in-stock positions exceeding 96% and
low-cost distribution.
“Our goal at TruckPro is customer satisfaction,” said
Mick Baird, President of TruckPro. “With the resources
and industry expertise of CHS, we will be better positioned
to provide efficient distribution of the most comprehensive
line of repair and maintenance parts in the industry. We
look forward to joining the CHS network of leading distribution
companies.”
Rich Lobo, Partner at CHS, said, “We
are eager to work with Mick Baird and the senior management
team of
TruckPro. With an uncompromising focus on customer service,
Mick and his team have generated outstanding financial
performance over the past several years. Going forward,
we believe TruckPro can maximize value to manufacturers
and customers by leveraging its centralized distribution
center over a larger branch network and using sophisticated
distribution technology to offer the most cost-effective
service in the industry.”
The investment in TruckPro complements CHS’ portfolio
of investments in the distribution industry, which currently
includes Beacon Roofing Supply, Inc. (Nasdaq: BECN), a distributor
of residential and commercial roofing products; The Hillman
Group, a distributor of fasteners, key blanks, signage and
other small hardware components; Hoboken Wood Flooring Corporation,
a distributor of hard surface flooring; Home Acres Building
Supply Co., a distributor of gypsum wallboard in the Upper
Midwest; Houston Wire and Cable Company (Nasdaq: HWCC), a
distributor of specialty wire and cable; and SunSource, a
distributor of fluid power products and systems.
CHS is a Chicago-based private equity firm
specializing in private
equity investments and recapitalizations of middle market
companies in
partnership with management. CHS has formed five private
equity funds
and currently manages over $2.5 billion of capital. Funds
for CHS'
investment in TruckPro come from CHS Private Equity V LP,
a $1.3 billion
investment fund formed in 2005.
For more information on TruckPro, please refer to the company’s
Web site at www.truckpro.com.
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