Euro Car Parts sold for £225 millionWed, 05 Oct 2011 00:00:00 -0700
Euro Car Parts Sold for £225 million
There was a time, a very long time ago, where Euro Car Parts was an almost hidden secret, supplying manufacturer standard parts for higher end cars at prices that were much more affordable.
The key to Euro Car Parts success was supplying parts which seemed to be sourced from the same suppliers as the car maker itself, but sold without the same huge margins.
This writer was an avid fan of Euro Car Parts as a struggling young dad with a penchant for cars he couldn’t really afford; Euro Car Parts – and weekends with a toolbox and oily hands – kept a succession of luxury and performance cars on the road on a shoestring, but without compromising quality.
Started in 1978 by Sukhpal Singh – who bought up a bankrupt car parts shop for £5k – Euro Car Parts has now grown to 89 shops round the UK thanks to budget conscious private owners and garages using their parts service; a service which includes almost instant delivery.
And now, 33 years on, Sukhpal has parlayed his original investment in to a £225 million sale to US car parts specialist LKQ. Well done that man. Not only has Sukhpal turned his business in to a mountain of cash for himself, he’s also staying on as Chairman and stands to see another £55 million if he hits targets for growth in the next two years.
That growth includes a plan to push in to Europe – which seems to have been the impetus for the sale to LKQ – and we wouldn’t bet against Euro Car Parts grabbing a big chunk of the currently overpriced European car parts market.
A great success story.
By Cars UK