Hicks, Muse, Tate & Furst, General Parts, O'Reilly Auto Parts and CCI/Triad Establish Internet Autoparts, Inc.
7 August 2000
Creates the First Industry-Sponsored, Web-Based Automotive Aftermarket Parts Procurement and Communications Company
DALLAS - Hicks, Muse, Tate & Furst Incorporated, General Parts, Inc., O'Reilly Automotive, Inc. and Cooperative Computing, Inc. today announced the formation of Internet Autoparts, Inc., a new Internet company that will provide the automotive aftermarket's first industry-sponsored, Web-based parts ordering and communications platform linking automotive service providers and the wholesale distributors who supply them with the automotive parts they need.IAP is owned by leading companies in the automotive aftermarket industry, including GPI, O'Reilly and Middle Atlantic Warehouse Distributor, Inc.; by CCI/Triad, the leading provider of technology solutions to that industry; and by financial investors led by HMTF, a leading private investment firm and CCI/Triad's majority investor. Additional terms of the transaction forming IAP were not disclosed.
GPI, O'Reilly, MAWDI and other automotive parts companies (including all of the CARQUEST group and certain members of the Aftermarket Auto Parts Alliance and Parts Plus programmed distribution groups) have directly invested in IAP and have committed to use IAP for their Web-based parts ordering and communications throughout North America. The founding auto parts companies operate more than 125 distribution centers and supply more than 8,500 auto parts stores in the United States and Canada. In addition, IAP will publish open standards and invite use by other aftermarket companies. The broad base of industry support and the open standards philosophy of IAP will enable IAP to provide the highest-quality service to its customers and partners, by facilitating the seamless procurement of auto parts from the broadest range of aftermarket suppliers.
IAP intends to focus on three major initiatives in the automotive aftermarket parts industry: business-to-business ("B2B") from the professional service dealer to local auto parts stores and warehouses, business-to-consumer ("B2C") from the "do-it-yourselfer" to local auto parts stores and other suppliers; and B2C from the "do-it-for-me" consumer to service dealers. IAP's primary objective is the creation and launch of a quality B2B service.
Jack Furst, an HMTF Partner and a director of CCI/Triad who has been named Chairman of IAP, said: "We're tremendously excited to partner with GPI, O'Reilly, MAWDI, CCI/Triad and other major industry participants, in forming this important new enterprise. IAP will be the first broadly sponsored Internet solution in the automotive aftermarket parts procurement space. We believe we will bring new levels of efficiency and profitability to both auto parts distributors and the service providers they serve. And, with its unique combination of rich database content, state-of-the-art information technology, and exclusive relationships with a broad range of auto parts suppliers, IAP is poised to create significant value for auto parts distributor/retailers, automotive service providers and investors alike."
O. Temple Sloan, Jr., founder and Chairman of General Parts, Inc., the largest member of the CARQUEST program with more than 1,150 company-owned stores, said: "As one of the largest auto parts suppliers in North America, we are always looking for new and better ways to meet the needs of our thousands of service dealer customers through strategically located CARQUEST Auto Parts stores. We expect IAP to significantly improve the speed and accuracy with which parts are ordered."
David O'Reilly, Co-Chairman and Chief Executive Officer of O'Reilly Automotive, a leading member of the Alliance program group, said: "We expect IAP to help us achieve even higher levels of customer service, efficiency and profitability as we continue to add stores to our network and continue to reduce operating costs while maintaining gross profit margins. IAP is an idea whose time has come, and we're delighted to be involved with its formation."
IAP will be powered by CCI/Triad's industry-leading, Web-based parts catalog, ePartExpert, and will have access to CCI/Triad's recently announced communications gateway, Aftermarket ConneX, which will provide seamless communications among the various CCI/Triad business platforms, already in use by much of the parts distributor industry, and third-party management systems.
General Parts, Inc., which currently ranks fifth among the top 50 in Aftermarket Business's Auto Chain Report, is an employee-owned company, serving the automotive service dealer, fleet and farm markets. It is the largest member of the CARQUEST program, owning about 1,150 of the nearly 4,000 CARQUEST Auto Parts stores across North America.
O'Reilly Automotive is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional installer markets. Founded in 1957 by the O'Reilly family, the company currently operates 635 stores within the states of Texas, Missouri, Oklahoma, Kansas, Iowa, Arkansas, Louisiana, Nebraska and Illinois as of July 31, 2000.
CCI/Triad is the automotive division of Cooperative Computing Inc. For more than 25 years, CCI/Triad has been a leading provider of computerized management systems, information services, and business consulting for aftermarket parts distributors, service dealers and automotive recyclers. CCI/Triad is headquartered in Austin, Texas, and has operations in Livermore, Calif.; Denver, Colo.; Brooklyn Park, Minn.; Newton, N.J.; San Antonio, Texas; and internationally in Canada, France, Ireland and the United Kingdom.
Since its formation in 1989, Hicks, Muse, Tate & Furst Incorporated has completed or currently has pending more than 370 transactions with an aggregate capital value of more than $47 billion. Its principal office is in Dallas with additional offices in New York City, London and Buenos Aires.