Milford auto parts company poised for expansion
Milford-based e-commerce auto-parts company FCP Euro is looking at a hefty expansion following a recent $7 million infusion by a Louisiana investment firm.
Stonehenge Capital announced its new debt investment into the Milford business Wednesday, money that is expected to help FCP improve its inventory, staffing and warehousing operations, among other things.
“We are truly excited to find a capital partner that is aligned with the growth plans and vision of FCP Euro,” said FCP CEO Scott Drozd in a press release. “This investment will help strengthen FCP Euro’s position in the expansive automotive aftermarket.”
FCP Euro sells aftermarket European car parts through its digital site and its brick and mortar facility at 155 Hill St. The business’s online platform caters to do-it-yourself customers, providing products and a collection of instructional videos to walk customers through repairs.
The company also offers dozens of “kits” that provide customers with all necessary parts needed for minor repairs, allowing them to save money compared with bringing their vehicles to repair shops, the site states.
Stonehenge’s investment was completed through the Invest CT program and Insurance Reinvestment Fund Tax Credit program, according to Charles Haberkorn, Managing Director at Stonehenge.
In addition to increasing inventory and expanding its warehouse, the funding will also allow FCP Euro to expand its automation equipment and other needs at its facility.
Hiring at the Milford business is also expected to surge in coming years with full-time employees growing from 82 to 150 people by 2023, according to a press release.
“FCP is a high-growth e-commerce company with a dynamic management team that has demonstrated the ability to drive top-line growth,” Haberkorn said in a press release
Since 1999, Stonehenge Capital has been operating as a finance services firm and has focused on community development projects, tax credit programs and growth capital funding for projects nationwide.
The company reportedly manages more than $3 billion worth of investments.
FCP Euro has been in business since 1986, starting as a bricks-and-mortar auto parts store in Groton. The business eventually started its online platform under Drozd and president Nick Bauer, who later developed the platform to what it is today.
The company relocated to Milford in 2008 and has continued its growth.
FCP has become a regular on the Inc. 5000 fastest growing companies in the country. The e-commerce business was ranked 4,750 last year, reporting $30.3 million in revenue in 2017 and a three-year growth of 65 percent.
That, ultimately, caught Haberkorn’s attention he said.
“It’s just a tremendous growth story,” he said, adding FCP Euro had outstripped its borrowing capacity with its prior lenders with no signs of slowing.
Haberkorn said the company stands to double its revenue this year, surpassing expectations.
“Originally we had projected revenue of about $77 million for 2019, but the way Q1 has gone, I think the company may touch $100 million,” he said.