HCI Equity Partners (HCI) has 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), following the recapitalization of Tri-State Enterprises Inc. (Tri-State) in November 2023.
Financial terms of the transaction were not disclosed.
“We are extremely impressed with the 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.
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, officials noted. Both CPS and Tri-State will continue to operate under their respective brands while benefiting from the shared resources of the Driven Distribution Group.
“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,” said Scott Gibaratz, partner at HCI. “We look forward to working together to achieve our shared vision for growth.”
Based in Elk Grove Village, Illinois, with additional locations in Illinois and Wisconsin, Chicago Parts & Sound is a warehouse distributor focused on automotive aftermarket parts, batteries, consumables and accessories. CPS 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. The founders 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), officials added.
“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,” said Bob Lederer, co-owner of CPS.
