Stellex Capital Closes Fenix Parts Refinancing

Stellex Capital Management has recently concluded the final closing of a single-asset continuation vehicle, acquiring interests in Fenix Parts, a notable player in the automotive parts industry. The aim of this transaction is to inject follow-on capital into Fenix, facilitating organic growth initiatives, supporting ongoing M&A activities, and leveraging strategic initiatives. Although the financial specifics were not disclosed, the transaction marks a significant milestone for both parties.

Established in 2014 and based in Hurst, Texas, Fenix specializes in recycling and reselling original equipment manufacturer (OEM) automotive parts, boasting an extensive network of 32 sites nationwide. Since Stellex’s acquisition in 2018, Fenix has substantially expanded its distribution network and geographic presence, integrating 19 add-on acquisitions into its operations. Under Stellex’s stewardship, Fenix has emerged as a prominent player in the recycled OEM automotive parts sector, with a strong presence in key regions across the US.

Bill Stevens, CEO of Fenix Parts, expressed enthusiasm about the partnership with Stellex, highlighting the opportunity to enhance regional coverage and better serve customers nationwide. Stevens emphasized the transaction’s benefits for family-owned businesses seeking ownership transitions, as well as for employees looking for career advancement within a larger organization. Customers stand to gain from access to an expanded inventory of top-quality recycled parts and improved service capabilities as Fenix expands its footprint.

Michael Stewart, Managing Partner at Stellex, commended Fenix’s remarkable progress under the firm’s ownership, expressing anticipation for the company’s next phase of growth. Michael Livanos, Managing Director at Stellex, praised Fenix’s evolution and highlighted its robust acquisition pipeline and integration capabilities, positioning the company as a preferred consolidator in the industry. The additional capital infusion is expected to fuel Fenix’s expansion efforts and bolster its position as a leading provider of recycled OEM parts nationwide.

Catherine DeMarco, Vice President at Stellex, lauded Fenix’s execution of strategic initiatives and operational improvements, expressing eagerness to continue the partnership to further solidify the company’s market leadership.

Evercore provided financial advisory services, while Kirkland & Ellis served as legal counsel for the transaction. Additionally, Fenix refinanced its debt capital structure, with TCW Private Credit Group leading the financing and Evercore and Greenberg Traurig providing advisory and legal support, respectively.

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