CarParts.com Inc. has landed a $35.7 million investment from a group of global partners, closing a six-month strategic review that explored potential buyers and other options for the online auto parts retailer.

The funding comes from an investor group of three companies. The investor group will purchase about 10.3 million new shares at $1.04 each. That’s an 18% premium to CarParts.com’s 90-day average stock price. The deal also includes $25 million in convertible notes carrying a 2% annual interest rate and a conversion price of $1.20 per share.

The investor group includes:

  • ZongTeng Group, a logistics and distribution provider.
  • A-Premium, a global supplier of mechanical parts.
  • CDH Investments, a private equity firm.

“We are excited to leverage the expertise of ZongTeng, A-Premium and CDH Investments to help scale CarParts.com’s operations and unlock new growth opportunities in the $300 billion U.S. auto parts industry,” he said.

CarParts.com is No. 168 in the Top 2000 Database. The Top 2000 ranks North American online retailers by their annual ecommerce sales and more.

How CarParts.com will use its investment funding

The company said it will use the capital to:

  • Expand its product lineup.
  • Upgrade the customer experience.
  • Improve operational efficiency.

CEO David Meniane called the deal “an inflection point” for CarParts.com.

CarParts.com will also deepen ties with its new partners. A-Premium is entering a long-term commercial partnership that will add roughly 150,000 products to CarParts.com’s catalog, including proprietary kits and bundles. ZongTeng will work with the company to improve delivery speed and lower fulfillment costs by tapping into its global logistics network.

The investors underscored the growth potential they see in the platform.

“Our investment reflects our belief that the market hasn’t fully recognized CarParts.com’s competitive advantages,” said Leon Chen, investment principal at ZongTeng.

Aaron Gong of A-Premium said the partnership provides “tens of millions of U.S. customers” access to its parts catalog, while CDH’s Chase Zheng described the company as a rare mix of “operational excellence and untapped market potential.”

The deal concludes a review CarParts.com launched in March after receiving unsolicited interest from potential buyers. The board considered a full sale but determined that the investment provided stronger near-term value while keeping long-term upside for shareholders.

“This transaction stood out due to its immediate value recognition, retained upside potential for our shareholders, and transformational sourcing and operational capabilities,” Meniane said.

CarParts.com serves more than 2.5 million customers annually and operates distribution centers that provide two-day delivery to 95% of the U.S.

Craig-Hallum Capital Group advised CarParts.com, while Wilson Sonsini Goodrich & Rosati served as legal counsel. White & Case represented the investor group.

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