Investcorp, a private equity and alternative assets investor that first bought the Woodlands, Tenn.-based automotive supplier with about $204 million of equity in 2006, said the deal unlocked $500 million of proceeds for the firm and its investors. FleetPride had about $475 million of long-term debt as of May 2012, according to a Moody's Investors Service report.
Investcorp said it made a net return of more than 200% on the investment in FleetPride, having supported 31 different add-on acquisitions and building it up into the largest truck and trailer parts distributor in North America. The strategy had strengthened the company's cross-country supply chain and added total acquired sales of over $270 million. It also helped increase the company's Ebitda from $52 million at the time of purchase to a forecast of over $100 million in 2012.
Investcorp's team, headed by Steve Puccinelli, managing director at Investcorp and head of corporate investment for North America, was advised by Bank of America Merrill Lynch, Citigroup Inc. and JPMorgan Chase & Co.
Fort Worth, Texas- and San Francisco-based TPG was advised by Deutsche Bank Securities Inc. and RBC Capital Markets LLC on the deal, and law firm Simpson Thacher & Bartlett LLP. TPG declined to comment Tuesday on the structure of the financing, but The Deal reported last month that the Fort Worth and San Francisco private equity firm was tapping BofA Merrill Lynch as well as Deutsche Bank and RBC for debt financing.
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