D’Ieteren Group, in exclusive negotiations, has issued a binding offer with Bain Capital Private Equity to acquire 100% of Parts Holding Europe (PHE). D’Ieteren Group is one of the owners of Belron, owner of Safelite AutoGlass and Safelite Solutions.
PHE is a western European leader in spare parts distribution and services for vehicles and trucks. PHE is valued at an Enterprise Value of $1.26 billion and an equity value of more than $613 million, a company statement states. The equity value would be financed with D’Ieteren Group’s excess liquidity, and “is subject to an information and consultation process with the PHE’s works councils.” Approval of the proposed transaction is required by relevant competition authorities.
PHE was founded in France in 1962 and “has become a critical omnichannel distribution platform in the independent aftermarket (‘IAM’) for vehicles and trucks spare parts with state-of-the-art sourcing and logistics capabilities,” the company statement shares. PHE has expanded its presence in France, Belgium, Spain, Italy, Luxemburg and The Netherlands, and employs approximately 8,400 people. PHE’s mission is “promoting affordable and sustainable mobility, and helps to reduce the environmental impact of the existing vehicle fleet by providing repair and maintenance solutions at a reasonable price.” PHE also strives to contribute to extending the life of vehicles.
The company statement states that the proposed acquisition “is fully aligned with D’Ieteren Group’s investment criteria and PHE would perfectly fit in D’Ieteren Group’s family of businesses as a new strong leading growth platform which would enable significant value creation with the ambition to generate a meaningful impact.”
Europe’s independent aftermarket is a large and growing fragmented market, the company statement says, with a high degree of predictability and resilience. “PHE’s winning operating model is based on superior scale and sourcing capabilities, logistics excellence and dense distribution network. The omnichannel approach (offline and online) care for an unmatched servicing of both B2B and B2C customers.”
“I look forward to welcoming PHE, a very promising growth platform into an industry we know well,” says Nicolas D’Ieteren, chairman of D’Ieteren Group’s board of directors, in the company statement. “This acquisition would mark a new big step in the long history of D’Ieteren Group and is fully aligned with the Group’s strategy. The prospects for value creation are highly attractive and we are looking forward to supporting PHE’s long-term development.”