Summit Partners has acquired a majority stake in Parts Town. No financial terms were disclosed. Bill Reedy and Steve Snower, who serve as Parts Town’s founder and CEO respectively, will retain their “sizeable” interests in the company. Metronome Partners served as financial advisor to Parts Town on the transaction. Parts Town is a provider of restaurant equipment parts for the foodservice industry.
ADDISON, IL and BOSTON, MA and MENLO PARK, CA–(Marketwired – Jan 15, 2014) – Growth equity investor Summit Partners today announced a majority investment in Parts Town LLC, the leading distributor of genuine OEM repair and maintenance equipment parts for the restaurant and foodservice equipment sectors. Parts Town’s founder Bill Reedy, CEO Steve Snower, and the management team will remain sizeable shareholders in the company. Additional terms of the investment were not disclosed.
Founded in 1987, Parts Town is the leading national firm focused on the marketing and distribution of genuine OEM restaurant equipment parts. Additionally, Parts Town provides field service and technical service support. Parts Town partners with original equipment manufacturers to drive customer satisfaction, improve the parts supply chain, and grow OEM parts market share. The company’s mission is to change the restaurant equipment parts market by setting extraordinary new standards in customer experience, web-based solutions and supply chain partnership. Parts Town has been recognized by Inc. Magazine as one of America’s fastest-growing private companies for five consecutive years.
“We welcome this partnership with Summit Partners,” said Parts Town CEO Steve Snower. “Our company prides itself on a culture of change, innovation, and accomplishment. Summit shares our core values and the ambition we have for this business. Our new investors bring decades of experience building, growing, and leading world-class companies. I look forward to partnering with them to scale Parts Town to new levels of success.”
Founder Bill Reedy states, “I am very proud of what Parts Town has achieved to this point, and I truly believe that this next chapter, in partnership with Summit, will be even more exciting.”
“We are very pleased to complete this investment in Parts Town,” said Jay Pauley, a Principal with Summit Partners. “We have closely followed Parts Town’s rapid growth over the years and admired its technology-focused business model and innovative management team.”
Parts Town has been at the forefront of investing in technology to support its customer and manufacturer partners. This includes partstown.com, the industry’s leading website; the industry’s first mobile app; and PartSPIN, a 360-degree imaging technology that allows customers to see a part from every angle and viewpoint. These features provide customers unprecedented access to Parts Town’s inventory, allowing them to plan their service operations more efficiently.
Joe Trustey, a Managing Director with Summit Partners added, “Parts Town is changing the distribution channel by providing manufacturing partners with technology, customer service and logistical support to improve sales and customer retention.” In connection with the investment, Joe Trustey and Jay Pauley will join Bill Reedy and Steve Snower on the Parts Town Board of Directors.
Weil Gotshal & Manges LLP provided legal counsel and Ernst & Young LLP provided accounting services to Summit Partners. Kirkland & Ellis LLP served as legal counsel and Metronome Partners provided financial advisory services to Parts Town.
About Parts Town
Parts Town is a leading distributor of genuine OEM restaurant equipment parts for the foodservice industry. Focused on delivering a unique customer service experience and website, Parts Town customizes solutions for both chain restaurants and food equipment service companies. Founded in 1987, Parts Town partners closely with the leading manufacturers of commercial cooking, refrigeration, ice, and beverage equipment to improve their parts supply chain, delight their customers, and grow genuine parts sales. For more information visit www.partstown.com or follow on Twitter at @PartsTown.
About Summit Partners
Founded in 1984, Summit Partners is a growth equity firm that has raised nearly $15 billion in capital, and provides equity and credit for growth, recapitalizations, and management buyouts. Summit has invested in more than 380 companies in technology, healthcare and other growth sectors. These companies have completed more than 130 public offerings, and more than 135 have been acquired through strategic mergers and sales. Notable technology-enabled business services companies financed by Summit Partners include Access Information Management, Aramsco, and Systems Maintenance Services. Summit maintains offices in North America and Europe, and invests in companies around the world. For more information, visit www.summitpartners.com or follow on Twitter at @SummitPartners.