Hci Equity Partners has announced the formation of Driven Distribution Group, a new platform focused on the automotive aftermarket distribution sector, marking a significant expansion in their investment portfolio. This strategic move is highlighted by Driven Distribution Group’s acquisition of Chicago Parts & Sound (CPS), a leading auto parts and accessories distributor. This acquisition follows HCI’s recapitalization of Tri-State Enterprises in late 2023, further solidifying their commitment to building a robust automotive aftermarket platform. The financial details of the CPS transaction remain undisclosed.
The creation of Driven Distribution Group, backed by HCI Equity Partners, aims to establish a dominant force in the automotive aftermarket. By integrating CPS and Tri-State, HCI Equity Partners envisions a platform that leverages shared resources, strategic insights, investment capital, and cutting-edge technology. This synergy is designed to empower its portfolio companies to enhance customer service and operational efficiency. Both CPS and Tri-State will maintain their distinct brand identities while benefiting from the collaborative advantages offered by the Driven Distribution Group.
Scott Gibaratz, a Partner at HCI Equity Partners, expressed enthusiasm about the latest acquisition, stating, “We are delighted to welcome Chicago Parts & Sound to the Driven Distribution platform. CPS’s strong presence in the Midwest is strategically invaluable and perfectly complements Tri-State’s existing strengths in product offerings. We are excited to collaborate and realize our shared growth objectives.”
Chicago Parts & Sound, headquartered in Elk Grove Village, Illinois, operates additional locations across Illinois and Wisconsin. The company specializes in distributing a wide array of automotive aftermarket parts, including batteries, consumables, and accessories. CPS caters to a diverse clientele, including auto dealerships, independent repair shops, government entities, and corporate fleets.
Founded in 1978, Chicago Parts & Sound was acquired by Bob and Jackie Lederer in 2002. Under their leadership, CPS has consistently delivered strong performance through value-added products, exceptional service, and strategic expansions via acquisitions. Demonstrating their confidence in the new platform, Bob and Jackie Lederer are reinvesting in Driven Distribution Group. They will continue to independently manage Police Department Systems, specializing in police and emergency vehicle upfitting, and Coachcraft & Precision Services, known for specialty auto restoration services.
Bob Lederer, Co-Owner of CPS, commented on the synergy between the businesses: “The growth trajectory of Tri-State Enterprises mirrors that of CPS, albeit in different geographical areas. Combining companies with such similar foundations, cultures, and customer-centric approaches is logical and beneficial for all stakeholders.”
Tristan Taylor, CEO of Tri-State, also noted the positive implications of this integration: “We are deeply impressed by the exceptional business and strong market reputation that Bob and Jackie Lederer have cultivated at CPS over the past two decades. The integration of CPS and Tri-State under the Driven Distribution Group platform, supported by HCI Equity Partners, will significantly expand our resources and capabilities, ultimately enhancing our service to both our employees and our valued customers.”
Dickinson Wright PLLC provided legal counsel to HCI Equity Partners and Driven Distribution in this transaction.
About HCI Equity Partners
HCI Equity Partners is a leading private equity firm focused on the lower middle market. They specialize in partnering with family and founder-owned businesses within the distribution, manufacturing, and service sectors. Headquartered in Washington, DC, HCI Equity Partners is dedicated to fostering growth and building long-term value in its portfolio companies. For more information, please visit www.hciequity.com.
About Driven Distribution Group
Driven Distribution Group, backed by HCI Equity Partners, operates as a robust warehouse distributor in the automotive aftermarket. Their focus is on hard parts, consumables, and accessories. The platform is committed to operational excellence, superior customer service, and promoting a culture of innovation and growth. By consolidating strong brands, Driven Distribution Group, with the strategic support of HCI Equity Partners, aims to become a premier platform in the automotive aftermarket industry. For further details, please visit www.drivendistributiongroup.com.
