Fort Smith, AR, October 2, 2024 – Driven Distribution, LLC (“Driven Distribution”), a warehouse distributor of automotive aftermarket hard parts, consumables, and accessories backed by HCI Equity Partners (“HCI”) announced that it has acquired the auto parts and accessories distribution business of Chicago Parts & Sound (“CPS” or the “Company”). Financial terms of the transaction were not disclosed. This transaction marks the second transaction in the Driven Distribution platform, following the recapitalization of Tri-State Enterprises, Inc. (“Tri-State”) in November 2023.
Based in Elk Grove Village, IL, with additional locations in Illinois and Wisconsin, Chicago Parts & Sound is a warehouse distributor focused on automotive aftermarket parts, batteries, consumables, and accessories. The Company serves auto dealerships, independent repair shops, municipalities / governments, and company fleets.
Chicago Parts & Sound was founded in 1978 and acquired by Bob and Jackie Lederer in 2002. Since then, CPS has had a tremendous track record of success built by providing excellent, value-added products and services to its clients in addition to completing several acquisitions. Bob and Jackie are reinvesting in the Driven Distribution platform as part of the transaction and will separately continue to own and operate Police Department Systems (police and emergency vehicle upfitting services) and Coachcraft & Precision Services (specialty auto restoration services).
Bob Lederer, Co-Owner of CPS, said, “the history of Tri-State Enterprises is in many ways parallel to that of CPS – just in a different part of the country. Opportunities to combine businesses of such similar backgrounds, ideologies, culture, and customer focus make tremendous sense for all stakeholders in each company.”
“We are extremely impressed with the stellar business and established market reputation Bob and Jackie Lederer have built over the past 22 years. The combination of CPS and Tri-State as part of the Driven Distribution platform will enable us to expand our resources and capabilities to better serve our employees and customers,” said Tristan Taylor, CEO of Tri-State. Scott Gibaratz, Partner at HCI, said “we are thrilled to welcome the CPS team to the Driven Distribution platform. Consistent with our original platform thesis, CPS represents a geographically strategic beachhead in the Midwest and is a great complement to Tri-State’s existing product categories. We look forward to working together to achieve our shared vision for growth.”
Dickinson Wright PLLC served as legal counsel to Driven Distribution and HCI.
Tri-State is an automotive aftermarket distributor headquartered in Fort Smith, Arkansas, with locations throughout Arkansas, Missouri, Oklahoma, and Texas. Tri-State specializes in automotive hard parts, consumables, truck accessories, car audio/electronics, and paint. Operating out of approximately one million square feet of warehouse space, it has partnered with a comprehensive set of the major parts and accessories brands in the industry to best serve its customers. Tri-State is a member of the Pronto Network and the AAM Group. For more information, please visit www.etristate.com.
HCI Equity Partners is a leading lower middle-market private equity firm focused on partnering with family and founder-owned distribution, manufacturing, and service companies. HCI is headquartered in Washington, DC. For more information, please visit www.hciequity.com.
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