HCI Equity Partners Announces the Launch of Driven Distribution Group and Completes Acquisition of Chicago Parts & Sound, LLC

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Oct 23, 2024, 07:00 ET

Chicago Parts & Sound is the second addition to HCI's new automotive aftermarket distribution platform

WASHINGTON, Oct. 23, 2024 /PRNewswire/ -- HCI Equity Partners ("HCI"), a leading lower middle market private equity firm, today announced the launch of Driven Distribution Group ("Driven Distribution"), a new automotive aftermarket distribution platform. The launch coincides with Driven Distribution Group's acquisition of the auto parts and accessories distribution business of Chicago Parts & Sound ("CPS" or the "Company"), following the recapitalization of Tri-State Enterprises, Inc. ("Tri-State") in November 2023. Financial terms of the transaction were not disclosed.

By bringing together CPS and Tri-State under the Driven Distribution Group umbrella, HCI aims to establish a leading platform in the automotive aftermarket industry by equipping its brands with shared resources, strategic vision, investment, and advanced technology to enable its companies to deliver best-in-class customer service. Both CPS and Tri-State will continue to operate under their respective brands while benefiting from the shared resources of the Driven Distribution Group platform.

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."

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. Under their management, CPS has achieved a track record of success with excellent, value-added products and services and expanded capabilities through several acquisitions. Bob and Jackie Lederer are reinvesting in the Driven Distribution platform as part of the transaction and will 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 growth of Tri-State Enterprises parallels that of CPS – just in a different part of the country. Opportunities to combine businesses of such similar backgrounds, 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 Group platform will enable us to expand our resources and capabilities to better serve our employees and customers," said Tristan Taylor, CEO of Tri-State.

Dickinson Wright PLLC served as legal counsel to HCI and Driven Distribution.

About HCI Equity Partners
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.

About Driven Distribution Group
Backed by HCI Equity Partners, Driven Distribution Group is a warehouse distributor of automotive aftermarket hard parts, consumables, and accessories. The platform focuses on delivering operational excellence, outstanding customer service, and fostering an innovative, growth-oriented environment. By uniting strong brands under one umbrella, Driven Distribution aims to create a leading platform in the automotive aftermarket industry. For more information, please visit www.drivendistributiongroup.com.

Contact
Lambert by LLYC:
Lisa Baker
[email protected]
603-868-1967

SOURCE HCI Equity Partners