New owners & execs at GSF Car Parts

The Epiris Fund III of private equity firm Epiris has acquired GSF Car Parts (GSF). This is the fourth investment for Fund III, and Epiris has not disclosed financial terms. The Ahluwalia Family Office has also co-invested in GSF Car Parts alongside Epiris, marking Sukhpal Ahluwalia’s return to the car afterparts market. Sukhpal Ahluwalia becomes executive chairman of GSF and Steve Horne chief executive officer.

The acquisition of GSF by Epiris follows LKQ Corporation’s undertaking to sell the business, given to the UK Competition and Markets Authority in connection with its acquisition of Uni-Select Inc.

“GSF serves a large and resilient market: in the UK there are more than 25 million cars that are over three years old, and all need to be maintained to the standards set by the MOT test. GSF has an established position supplying the myriad products required to maintain these vehicles, with an offering built on customer service, product range and availability. We look forward to building on the strong platform that the GSF team have created,” says Chris Hanna, partner at Epiris.

“This is another classic Epiris deal: a corporate carve-out of a business with a strong position in an attractive, growth market,” adds Alex Fortescue, managing partner at Epiris. “We see the opportunity to grow the business significantly with an acceleration of existing plans coupled with the fresh perspective we are able to bring.”

Ahluwalia & Horne reunited

Having founded Euro Car Parts in 1978, Sukhpal Ahluwalia scaled the company from a single car accessories store in London into the largest car parts distributor and retailer in the UK, with 260 branches nationwide and annual sales of over £1.2 billion. The new appointments to the GSF management team reunite Ahluwalia and Steve Horne, who previously worked together at Euro Car Parts. The team plans to add a significant number of new branches to the business over the coming years, improve the branch experience, strengthen its e-commerce offering, invest in its catalogue and IT, and rejuvenate its delivery fleet. The business will also stake out its leadership on sustainability by extending its range of products for electric vehicles, as well as investing in new technology to reduce the company’s own emissions and energy footprint.

“This is a hugely exciting time for GSF Car Parts, and I look forward to working with all of our valued team members, customers, and global suppliers as we start on this new journey together,” states Sukhpal Ahluwalia. “I have a huge respect for the GSF team, including the business’ hard-working branch team members and head office colleagues. Relationships have always been at the centre of GSF’s success, and that’s something that we’re going to double down on.”

“We will turn the business into a fast-growth, sales-focused company with our customers, suppliers, and team members at its heart,” says Steve Horne. “This growth plan will deliver opportunities across the industry: new sales channels for our valued global suppliers, added convenience for our important customers, and new roles for our knowledgeable team members.”

Major aftermarket supplier

GSF is a leading national distributor of automotive parts for the independent aftermarket in the UK. The business offers 180,000 branded and own-label parts for all makes of petrol, diesel and electric cars and vans as well as workshop equipment and technical support. GSF’s customers include multi-site national chains such as Kwik Fit, Halfords and Green Flag, as well as some 40,000 independent garages and retail customers. With well-located national and regional distribution centres supporting 180 branches across the UK, GSF supplies a comprehensive product range sourced from around 700 global suppliers.