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You Can’t Slow Down FleetPride

Investcorp is on a roll. Since buying heavy-duty parts distributer FleetPride in 2006, the buyout firm has led the company through thirteen add-on acquisitions. Thirteen! That’s as many companies as most firms have in their portfolio.

Including today’s deal for Angelo Fleet & Industrial Supply, FleetPride has announced five deals in just this year, which is certainly more than most middle market buyout firms have done. I assume these deals are small, as they are almost all family-owned businesses which never disclose a price. But FleetPride itself is not small.

Investcorp purchased the company from Aurora Capital Group and Brentwood Associates in 2006 for $506 million. Bank of America also participated in the deal, which included $160 million term loan B, a $40 million first lien revolver, and $150 million senior bridge loan.

At the time, the company was the country’s largest independent distributor of heavy-duty truck and trailer parts with 156 distribution centers. Thirteen deals later, and FleetPride has 189 locations.

Everyone loves a fragmented market, so why is no one competing with FleetPride for these deals?

(For its part, Investcorp loves the trucking industry so much it purchased Randall-Reilly Publishing Co., a publisher of trucking and construction magazines, in 2008.)

So here’s the breakdown of the most extensive roll-up plan I’ve ever seen:

FleetPride has purchased five companies this year:

Oct 19, 2009:  Angelo Fleet & Industrial Supply, Inc.
Jul 20, 2009: Panhandle Truck Parts, LTD
Jul 13, 2009: Fleet Supply of Tallahassee, Inc.
Mar 30, 2009: Pro Truck & Trailer Supply, Inc. and Opens 15th Location in Texas
Feb 23, 2009: Multibearings Service Co., Inc.

Last year, the company did seven deals:

Feb 26, 2008: Oklahoma Truck Supply
Mar 17, 2008: Truck & Industrial Supply Co, Inc.
Apr 28, 2008: Keller Truck Parts, Inc.
Aug 04, 2008: Truck & Trailer Supply, Inc.
Sep 22, 2008: Bound Brook Safety Equipment Co.
Nov 10, 2008: E.H. Burrell Co., Inc.
Nov 17, 2008: Automotive Brake Co. of Newburgh, Inc.

In 2007, FleetPride remained on the sidelines.

In 2006, the company purchased one business.

Nov 20, 2006: E&E Parts & Equipment