Stellex Capital Management refinances Fenix Parts

Stellex Capital Management, a New York-based middle-market private equity firm, has closed a single-asset continuation vehicle that has acquired interests in Fenix Parts.

The transaction will provide follow-on capital to drive organic growth initiatives, support the continued execution of Fenix’s prospective M&A pipeline and capitalize on the progress of strategic initiatives. Financial terms of the transaction were not disclosed.

Founded in 2014 and headquartered in Hurst, Texas, Fenix is a recycler and reseller of original equipment manufacturer automotive parts with 32 full- and self-service sites across the U.S. Since Stellex’s acquisition in 2018, Fenix has expanded its distribution network and strengthened its geographic density through the completion and integration of 19 add-on acquisitions, giving it sites across the Northeast, Southeast, Midwest and Southwest. 

“We are excited to continue our partnership with Stellex and expand our regional coverage to better serve our customers across the U.S.,” Fenix Parts CEO Bill Stevens says. “We believe this transaction is a win-win for everyone involved—t offers family-owned businesses that are looking to transition ownership with the opportunity to partner with Fenix while providing their employees enhanced career-growth opportunities as part of a larger, thriving organization. Our customers will also benefit from access to an expanded inventory of high-quality recycled parts and enhanced service capabilities as we further build out our nationwide footprint."

"Fenix has made tremendous strides under Stellex's ownership, and we are proud of the company's transformation into an industry-leading platform,” says Michael Stewart, managing partner at Stellex. “We look forward to supporting the team in this next chapter of growth."

Michael Livanos, managing director at Stellex, adds, "It has been remarkable to witness Fenix's evolution over the past few years. The company has not only grown significantly but has also enhanced its sophistication, building a strong and professionalized business. We believe Fenix's robust acquisition pipeline and strong ability to successfully integrate new locations positions the company as the consolidator of choice in the space.”

So far this year, Fenix has acquired Neal Auto Parts’ assets in Peoria, Illinois; Green Auto Parts & Recycling in Sun Valley, California, which expanded the company to the California market; Pacific Rim Auto Parts’ assets in Fort Worth, Texas; and Stafford’s Auto Parts, Montgomery, Illinois.

Livanos says the additional capital will enable Fenix to further expand its geographic footprint and enhance its customer service capabilities. “We have also focused on creating a growth trajectory for high-performing employees to take on expanded roles and responsibilities, which will be key to supporting Fenix's continued success."

“We believe the Fenix team has done an outstanding job executing on the company's strategic initiatives and driving operational improvements across the platform,” says Catherine DeMarco, vice president at Stellex. “We are excited to continue our partnership with Bill and the entire Fenix organization in an effort to further expand the company's market leadership position in the automotive aftermarket space."

In conjunction with the transaction, Fenix refinanced its debt capital structure.