Euro Car Parts has cemented its place as the UK’s second largest independent motor parts supplier with its acquisition of rival LSUK.
AM understands that LSUK was hours away from collapse when ECP’s directors were invited to bid for the business. They outbid two rivals and were able to complete the takeover within 48 hours using company funds.
The takeover rockets ECP’s network of trade parts outlets to more than 110 sites.
Combined turnover is expected to near £200 million, and chairman Sukhpal Singh expects to restore the LSUK businesses into profit within months.
“We’re not trying to change anything that works. It just needs good leadership and motivation. This business is our passion, we’re not in it for a quick buck,” Singh said.
LSUK brings diesel and emissions expertise to ECP’s business, which it was previously lacking, said Singh.
In terms of network size ECP is now in second place behind Unipart Auto-motive, which has 188 outlets.
However, that business has been suffering losses and is still pursuing its recovery plan.
Aftermarket analyst Chris Oakham, of Trend Tracker, said the acquisition should bring added strength to ECP’s operation.
“This broadens its market significantly and we may even see some prices come down due to economies of scale.
“The second benefit is that after the last collapse of
new car sales we saw independent repairers take a larger portion of the car servicing market, and independents like to buy their parts locally from somewhere like ECP, so this acquisition could be well timed,” Oakham added.