Sukhpal Singh Ahluwalia has sold his majority shareholding in commercial vehicle parts distributor Digraph to LKQ Corporation following the successful national roll-out of the business.
The acquisition of the company by LKQ Corp for an undisclosed sum caps off a journey that started in 2017, when Ahluwalia became its majority owner. Over the last five years, Ahluwalia has served as the company’s Chairman and overseen its growth strategy.The expansion of the business has reportedly been paired with strategic investments in quicker delivery speeds, market-leading customer service, and an increased product range. Over recent years, Digraph also apparently introduced mezzanine floors in a number of its existing branches to increase stock capacity.Specialising in HGV, coach and bus parts, Digraph is said to have originally been founded in 1976 from a single portakabin in Derbyshire. It now claims to operate more than 20 warehouses across the UK, with in excess of 300,000 deliveries to more than 4,000 customers annually.The deal marks Ahluwalia’s most recent successful exit from a business in the UK autoparts industry. In 1978, Sukhpal Singh Ahluwalia founded car parts retailer Euro Car Parts from an alleged single store before growing it into what is now claimed to be the largest car parts distributor in the UK and one of the largest in Europe. The business was sold to LKQ Corporation in 2011, supposedly for £280 million.Over recent years, Ahluwalia is said to have continued to invest in UK businesses through his family office whilst also scaling up his business and investment activity in India. As he continues to prepare for his retirement to India, he is now apparently considering new investments in the autoparts industry in India. The Ahluwalia family reportedly also continues to be an active investor in real estate, hotels and hospitality, student accommodation, and other businesses.
Sukhpal Singh Ahluwalia said: “When I first looked closely at the Digraph business five years ago, I was immediately struck by its huge growth potential. The business had solid fundamentals with a loyal customer base and a strong brand, which made it a perfect business for an ambitious and aggressive roll-out.“At the time, there was a desperate need for a new national retailer of commercial vehicles parts across the UK that could offer customers a better range of parts at a more competitive price point.“That is what we have achieved over the last 5 years, with the business now serving more customers than ever before. This success has been a direct result of the company’s talented leadership team, and the business has clearly flourished under its CEO James Rawson and my partner in the business Neil Brown.“The success of this deal is all the more impressive because of the short timeline. I originally set an aggressive timetable for the expansion of the business to align with my plans to spend more time in India before eventually retiring to the country.“I want to thank all the team for the fantastic job that they have done in scaling this business. Every member of the team, whether they work in our HQ, warehouses, or anywhere else, has been instrumental in its success, and it’s something that everyone should be truly proud of.“While this might be the end of my involvement in this particular business, I’m still keen to play an active role in the global vehicle parts industry and I am particularly attracted by the massive opportunity in the Indian market at the moment.”
