Leonard Green Invests in Parts Town
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Leonard Green Invests in Parts Town

Berkshire Partners will retain its majority stake in the company in partnership with Leonard Green

Parts Town is the world’s largest distributor of OEM foodservice equipment parts with annual revenues of more than $1 billion.

SOURCE: Parts Town

Leonard Green & Partners has made an investment in Parts Town, a distributor of OEM foodservice equipment parts, and a portfolio company of Berkshire Partners. Berkshire will retain its majority stake in the company in partnership with Leonard Green and the senior management team of Parts Town.

Parts Town is a technology-focused global distributor of OEM parts used by foodservice operators and service companies to repair, maintain, and improve foodservice equipment. The company, led by CEO Steve Snower, stocks parts from more than 1,100 foodservice manufacturers.

According to Leonard Green, Parts Town is the world’s largest distributor of OEM foodservice equipment parts with annual revenues of more than $1 billion. The company was founded in 1987 as a restaurant equipment parts distributor for local service companies. Today, Parts Town has more than 2,500 employees and has been named to the Inc. 5000 list of fastest-growing US companies for 13 consecutive years.

Parts Town’s growth strategy targets international expansion and the addition of new product categories including residential appliance parts, HVAC parts, and laundry parts.

“We have huge growth ambitions, and the combination of Berkshire and Leonard Green positions us to rapidly scale and further differentiate,” said Mr. Snower. “We are committed to accelerating innovation, providing a unique customer experience, and acting with complete integrity. We are delighted to have partners who share both our values and our ambition.”

“We are delighted to be partnering with the exceptional team at Parts Town,” said Jonathan Seiffer, a senior partner at Leonard Green. “We invest in companies that win with people, have a differentiated culture and are market leaders with multiple ways to grow — and Parts Town is the perfect example. The company’s customer-first mission and employee-centric values perfectly align with what we believe at Leonard Green. We have admired Parts Town for a long time and are excited to be partnering with Parts Town management and Berkshire Partners to support the next phase of the company’s growth.”

Los Angeles-based Leonard Green invests in service companies operating in the consumer, business, healthcare, retail, distribution, and industrial sectors. In December 2019, Leonard Green held final hard cap closings of its eighth private equity fund, Green Equity Investors VIII LP, with $12 billion of capital; and its inaugural dedicated middle-market fund, Jade Equity Investors LP, with $2.75 billion of capital.

“Parts Town is an incredibly special company. Steve and the entire team are passionate about developing best-in-class technology to serve their suppliers and customers,” said Larry Hamelsky, a managing director of Berkshire Partners. “We are deeply proud of our long-standing partnership with this team, and we are excited to collaborate with Parts Town and Leonard Green to support the next chapter of innovation and growth.”

Boston-based Berkshire makes majority or minority equity investments of $100 million to $1 billion in companies with enterprise values from $200 million to $2 billion. Sectors of interest include consumer, business services and technology, industrials, communications, and healthcare. Berkshire focuses primarily on North American companies however it will pursue select international opportunities as well.

© 2021 Private Equity Professional | November 4, 2021

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