Chicago-Based Parts Town and Encompass Join Forces
It takes a lot of moving parts to keep a restaurant running smoothly, literally and figuratively. Beyond the amicable staff and well-equipped facilities, the intricate bits and pieces that power the business are just as essential. Specializing in parts and tech designed for the foodservice industry, Addison-based Parts Town is expanding its marketplace platform with the acquisition of Georgia-based Encompass Supply Chain Solutions.
Operating a marketplace solution that features parts from more than 1,100 manufacturers, Parts Town provides next-day delivery of original equipment manufacturer (OEM) parts for businesses in the restaurant space.
The company announced on Tuesday the addition of Encompass to its ranks, a platform that offers OEM parts for home appliances and electronics. Financial terms of the deal were not disclosed.
Parts Town added residential appliance parts as a new category last year. This latest acquisition will enable it to expand even further into that market.
“Parts Town leverages robotics and automation to improve the customer experience and to ensure that parts are picked, packed and shipped as rapidly as possible,” Robert Coolidge, Encompass’ president and CEO, and David Wenger, group president at PT Holdings, Parts Town’s parent company, told Built In via email. “Encompass will bring the same expertise and innovation to the residential space for Parts Town.”
Serving customers like foodservice providers or service technician companies, Parts Town aims to improve the supply chain, increase sales of genuine OEM parts and keep its customers’ businesses running smoothly. It plans to expand its offerings in several product categories, including residential appliance parts and consumer electronics. It will serve new segments like HVAC and residential appliance parts.
Encompass operates six facilities with a team of almost 250 members. Featuring selections from over 200 manufacturers, it has almost $200 million in annual revenue, according to the company. The acquisition was a good fit for Parts Town since Encompass’ service model is closely aligned with that of its own.
Coolidge will continue to lead the Encompass team with added capital and support from Parts Town. The two operate as separate entities within PT Holdings with a focus on residential parts. The executive leaders hope the two businesses will leverage each other’s expertise as they continue to operate as they do today.
“Parts Town is essential to the foodservice industry. When commercial kitchen equipment goes down, restaurants and foodservice operators stand to lose revenue and can’t service their customers,” Coolidge and Wenger said. “Foodservice operators need to have the confidence that they are ordering the correct part, and that it will arrive quickly to minimize the disruptions caused by broken equipment. Encompass allows customers looking for parts for their home to find and buy the parts they need quickly and efficiently as well.”