Stellex Capital Management LLC Closes Continuation Vehicle and Comprehensive Refinancing for Fenix Parts

Stellex Capital Management (“Stellex”), a middle-market private equity firm, announced the final closing of a single-asset continuation vehicle that has acquired interests in Fenix Parts (“Fenix” or the “Company”). The transaction will provide follow-on capital with the aim of driving organic growth initiatives, supporting the continued execution of the Company’s prospective M&A pipeline, and capitalizing on the progress of strategic initiatives. Financial terms of the transaction were not disclosed.

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Founded in 2014 and headquartered in Hurst, Texas, Fenix is a leading recycler and reseller of original equipment manufacturer (“OEM”) automotive parts with 32 full- and self-service sites across the US. Since Stellex’s acquisition in 2018, Fenix has significantly expanded its distribution network and strengthened its geographic density through the successful completion and integration of 19 add-on acquisitions. Under Stellex’s ownership, Fenix has grown to become an industry-leading player of recycled OEM automotive parts, with 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 US,” said Bill Stevens, CEO of Fenix Parts. “We believe this transaction is a win-win for everyone involved - it 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."

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

Michael Livanos, Managing Director at Stellex, commented, "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. This additional capital will enable Fenix to further seek to expand its geographic footprint and enhance its customer service capabilities as a leading nationwide provider of recycled OEM parts. 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."

Catherine DeMarco, Vice President at Stellex, added, "We believe the Fenix team has done an outstanding job executing on the Company's strategic initiatives and driving operational improvements across the platform. 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."

Evercore acted as financial advisor and Kirkland & Ellis served as legal counsel for the transaction.

In conjunction with the transaction, Fenix refinanced its debt capital structure. TCW Private Credit Group acted as lead lender and administrative agent on the financing. Evercore acted as financial advisor and Greenberg Traurig served as debt counsel.

About Fenix Parts

Fenix Parts is a leading recycler and reseller of OEM automotive products. The company’s primary business is auto recycling, which is the recovery and resale of OEM parts, components, and systems reclaimed from damaged, totaled or low value vehicles. Fenix was founded in 2014 to create a network that offers sales, fulfillment, and distribution in key regional markets in the United States. Fenix currently operates locations in the Northeast, Southeast, Southwest, Midwest and Southern California, and the Fenix companies have been in business for more than 25 years on average.

About Stellex Capital Management LLC

With offices in New York, Detroit, Pittsburgh, and London, Stellex Capital is a private equity firm with over $2.8 billion in AUM. Stellex seeks to identify and deploy capital in opportunities that stand to benefit from its operationally focused and hands-on approach to investing. Portfolio companies are supported by Stellex’s industry knowledge, operating capabilities, network of senior executives, strategic insight, and access to capital. Sectors of particular focus include aerospace, defense & government services, transportation & logistics, manufacturing, real economy & business services, food processing and tech-enabled services. Additional information may be found at www.stellexcapital.com.

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