DALLAS, June 3 -- Trust Company of the West, a Los Angeles-based investment group, and the management of Chief Auto Parts Inc. Friday announced an agreement to acquire the auto parts store chain for an undisclosed price.
Dallas-based Chief Auto Parts, which operates about 500 stores in the Southwest and the West, was spun off by Southland Corp. in 1988 and acquired in a management-led buyout for $135 million, spokesman Kenny Cason said.
Cason said the new owners, as part of the agreement, have paid off much of the long-term debt of the company resulting from the original buyout which was financed by General Electric Capital.
'TCW has bought out all of our debt and now we will not be leveraged at all. TCW will be the majority owners and the current management will have some participation,' Cason said.
The company is led by President and CEO David Eisenberg who was not part of the 1988 buyout, Cason said. There are another 15 to 20 members of the current management who are participating in the acquisition, Cason said.
In a prepared statement, Eisenberg, who will continue in his position, said, 'We are very excited about this new financial agreement which enhances Chief's position in the automotive aftermarket and allows us to accelerate our growth plans.'
The transaction is expected to be completed in late June.
Cason said the company will remain in Dallas. There are about 80 people in the corporate staff, he said.
He declined to give details of the company's financial performance since 1988 but said that after 'some mediocre performances' the company has done exceedingly well in recent years.
'We had an outstanding 1993 and are expecting the same for 1994,' he said.NEWLN: ( Harihar Krishnan in Dallas)