CarParts.com Secures $35.7M Investment to Fuel Growth and Enhance Operational Capabilities

CarParts.com has secured a $35.7 million strategic investment from ZongTeng Group, A-Premium, and CDH Investments. The investment aims to enhance product range, customer experience, and operational improvements, driving growth and profitability. However, the company faces financial challenges, including negative earnings per share, declining revenue per share, and a moderate debt-to-equity ratio. CarParts.com must navigate the competitive vehicles and parts industry, focusing on online sales channels and innovation to capture the e-commerce trend.

CarParts.com, Inc. (NASDAQ: PRTS), a leading e-commerce provider of automotive parts and accessories, has secured a strategic investment of $35.7 million from ZongTeng Group, A-Premium, and CDH Investments. The investment aims to enhance the company's product range, customer experience, and operational improvements, thereby driving growth and profitability.

The investment comes at a critical time for CarParts.com, which has been facing financial challenges, including negative earnings per share, declining revenue per share, and a moderate debt-to-equity ratio. The strategic partners, ZongTeng Group, A-Premium, and CDH Investments, are collectively investing in CarParts.com to strengthen its market position and growth trajectory.

ZongTeng Group, known for its world-class distribution and logistics capabilities, will bring significant expertise to CarParts.com. A-Premium, a recognized global leader in mechanical parts procurement, marketing, and e-commerce, will provide access to over 150,000 additional products, including proprietary kits and bundles. CDH Investments, an asset manager with a focus on value-oriented investments, will contribute strategic resources to support the company's growth.

CarParts.com will leverage this capital infusion to expand its product assortment, enhance customer experience, and accelerate key operational improvements. The partnership with A-Premium will offer CarParts.com customers a broader and more complete solution for their automotive needs, positioning the company as a one-stop destination for both DIY customers and professional installers.

The transaction concludes CarParts.com's strategic alternatives review process, which was announced in March 2025. The company's Board of Directors unanimously concluded that this investment best positions CarParts.com to deliver significant, near-term shareholder value while allowing for investment to accelerate growth.

The investment is structured to issue approximately 10.3 million new common shares at $1.04 per share, representing an 18% premium to CarParts.com's 90-day volume-weighted average price. Additionally, CarParts.com is issuing convertible notes to ZongTeng Group and CDH Investments in an aggregate principal amount of $25 million with a three-year term, a two percent annual interest rate, and a conversion price of $1.20 per common share. This structure provides immediate growth capital while aligning CarParts.com's partners and shareholders around building long-term, sustainable value for the company.

CarParts.com must navigate the competitive vehicles and parts industry, focusing on online sales channels and innovation to capture the e-commerce trend. The company's strategic partners will play a crucial role in helping CarParts.com achieve its growth objectives and overcome its current financial challenges.

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CarParts.com Secures Strategic Investment from Global ...^[1] https://www.prnewswire.com/news-releases/carpartscom-secures-strategic-investment-from-global-industry-leaders-zongteng-group-a-premium-and-cdh-investments-302550111.html