By purchasing Parts Alliance Group, the second-largest distributor in the United Kingdom, the Canadian Uni-Sélect signs its entry into an increasingly competitive and international European market.

The globalization of the automotive aftermarket is accelerating. Indeed, after the eruption in 2011 of the American group LKQ, which never ceases to grow ever since, it is the turn of the Canadian Uni-Select to take a position on the European market of the spare part.

As the American, the Canadian operator has set his sights on the UK for a successful entry in the Old Continent. It has just announced the acquisition of The Parts Alliance, which was part of the HgCapital investment fund.

The second largest independent distributor in the United Kingdom, following a series of 10 acquisitions since 2012, it has 161 corporate stores and a network of 38 affiliated stores in England, Scotland, Wales and Ireland.

Parts Alliance has a market share of around 7% and serves more than 23,000 customers through the coverage of almost 85% of the country. The distributor is worth 264.9 million pounds in turnover.
The potential of the UK market

The amount of the transaction is valued approximately at 205 million pounds (approximately 236 million Euros). The closing of the transaction is expected to be finalized in the third quarter of 2017.
"We are delighted to establish a third growth driver in the UK's large aftermarket of automotive products, which is expected to have an immediate positive impact on the company's profitability," said Henry Buckley, President and Chief Executive Officer Uni-Select.

This market has great growth potential linked to future consolidation opportunities. Parts Alliance is an excellent organization, having a leading position in this market nationwide, a proven growth platform and experienced management team that has demonstrated its ability to drive profitable growth ».

Over 1 billion Euros in sales

Still unknown in Europe, Uni-Select is a major player in the North American spare parts market, equipment and aftermarket products, where it counts a network of 14 distribution centers and 270 stores and over 1,100 independent wholesalers. It has 22,000 customers and generated sales of 1.095 billion Euros in its last financial year.

The Canadian operator arrives on "the fourth largest car fleet in Europe", estimated at 4.1 billion pounds, and also one of the most fragmented.

 "Over the next few years, the market should continue to grow, mainly due to the aging of the car fleet and government regulations requiring a full inspection of all vehicles that have reached three years of wear and tear," concludes Uni-Select.

Original Source : pro.largus.fr

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