Parts Town Grows Significantly Beyond Foodservice With Latest Bolt-On

The rapidly-growing distributor suddenly has a strong foothold in OEM home products after acquiring Emcompass Supply Chain Solutions.
Parts Town 2

After numerous acquisitions in recent years, Parts Town wasn’t sneaking up on anyone. But the OEM parts distributor to the foodservice industry still found a way to turn heads this week by announcing a significant bolt-on.

On April 5, the Addison, Illinois-based company said that it had acquired Encompass Supply Chain Solutions, an Atlanta-area-based distributor of OEM repair parts for the home. It marks a considerable market grab for Parts Town, which had catered almost exclusively to foodservice/food retail/commercial kitchen customers prior to 2021.

Parts Town said Encompass brings nearly $200 million in added revenue. It also adds six distribution facilities, nearly 250 employees and over 200 supplier relationships.

It’s not Parts Town’s first foray into the residential parts market, but it’s certainly its biggest. In April 2021, the company announced the acquisition of Dayton Appliance Parts Co., adding a dozen locations across Ohio, Indiana and West Virginia. Terms likewise weren’t disclosed for that deal.

David Webner, group president of Parts Town’s parent company, PT Holdings, said that Parts Town has been “thrilled” with the growth opportunities and supplier partnerships that have emerged from the recent residential parts market entry and that the company is eager to take another step forward with Encompass.

The Encompass acquisition comes about five months after Parts Town gained significant investment from Leonard Green & Partners, L.P., while Berkshire Partners has retained its majority stake in the company. In announcing that added capital this past Nov. 3, Parts Town said the funding would support its rapid international expansion and vision to extend into other mission-critical parts categories that include residential appliance parts, HVAC and laundry parts.

And before that, Parts Town launched its Parts Town Marketplace last September, offering customers a one-stop shopping e-commerce platform for all its current and future product categories, whereas customers previously had to visit multiple websites to make purchases. In hindsight, it was a critical step to expand buying options ahead of the company’s growth into residential.

Parts Town Marketplace

Encompass’ product portfolio covers replacement parts and accessories for and small appliances, consumer electronics, HVAC, personal care, health and wellness, imaging, tools, gaming accessories, auto accessories, home maintenance, PPE, cooking utensils, surface cleaners, installation supplies and more. Its major brands include Sony, Samsung, LG, Whirlpool, GE, Lenovo, Panasonic, Electrolux, Philips and others.

Encompass itself has grown rapidly over the past two years. In March 2022 alone, the company opened its fifth distribution center — a new 50,000-square-foot facility just outside of Cincinnati, Ohio; was appointed an authorized distributor of Bosch home appliance parts; and integrated and connected with Rossware Computing’s business management system for streamlined appliance parts purchasing. Those developments followed a handful of deals Encompass landed for parts supply and support service across leading consumer brands.

The Big Picture

The Encompass and Dayton deals ensure that Parts Town will no longer be known just for its foodservice products and services. With added financial backing, a sleek e-commerce marketplace platform and a whole new residential market to serve, expect to see the distributor gain considerable market share in the years ahead.

We’ll be watching specifically to see if Parts Town explores expansion into any other product categories, such as industrial MRO, which seems like a logical complement to its current portfolio. Some of its products are already in tangential categories of plumbing, HVAC, JanSan, HVAC and tools.

Related Posts

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access