Tri-State Enterprises, Inc., a Fort Smith, Arkansas-based distributor of automotive aftermarket parts and accessories, has announced a recapitalization of the company in partnership with HCI Equity Partners and its management team. The financial specifics of the transaction have not been disclosed.
The company, which was founded in 1977, distributes automotive aftermarket hard parts, consumables, accessories and paint to service centers, independent stores, e-commerce retailers and business fleets. It also maintains a network of company-owned stores. Tristan Taylor, a long-time employee, acquired the company in 2015, and under his leadership, Tri-State has grown, including with the acquisition of WM Automotive in 2021.
“Since the acquisition of WM Automotive and the opening of our 492,000-square-foot Arlington warehouse, the Tri-State team has had its eye on several new territories and further product line expansion to better serve its customer base,” Taylor, CEO of Tri-State, said. “HCI is the perfect partner to help us accelerate that growth.”
Scot Gibaratz, partner at HCI, expressed enthusiasm about the partnership: “HCI is excited to partner with the management team of Tri-State. We share a common vision for the future and will support the Tri-State team with our resources and expertise to help them continue their extraordinary growth and best-in-class customer service.”
Taylor said shared values and cultural fit led Tri-State to select HCI as a financing partner.
Legal counsel for the transaction was provided by Mitchell, Williams, Selig, Gates & Woodyard, PLLC for Tri-State and by Dickinson Wright PLLC for HCI Equity Partners.
