Advance Auto Parts Announces Closing of Acquisition of General Parts International, Inc.
Advance Auto Parts, Inc. announced in early January 2014 that it has completed the acquisition of General Parts International, Inc. (GPII). GPII is a leading privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands.
The transaction creates the largest automotive aftermarket parts provider in North America, with annual sales of more than $9.3 billion and more than 70,000 Team Members. The strong combined financial profile allowed for an all-cash transaction and supports Advance Auto Parts’ commitment to maintaining its investment grade ratings. The acquisition of GPII accelerates Advance’s Auto Parts’ growth strategy and enhances shareholder value through the following strategic benefits:
The acquisition gives Advance Auto Parts a balanced platform for growth between do-it-yourselfers (DIY) and commercial buyers, making them the number one distributor of import automotive parts and the largest automotive aftermarket business-to-business e-commerce platform in North America.
It also gives Advance Auto Parts complete coast-to-coast coverage with approximately 5,300 company operated stores across North America, creating a company with scale, reach and expanded growth opportunities benefiting shareholders, customers and team members. This presence in new markets allows Advance the ability to expand its geographic footprint in an efficient manner.
Advance Auto Parts plans to expand its product and category offerings in both core and new product lines (i.e. paint and heavy duty), creates a new sales channel with independent customers and broaden its ability to grow with attractive customer segments such as larger-bay garages, import specialists, national accounts and fleet and government programs.
The acquisition will also enhance Advance Auto Parts’ ability to serve customers through the transfer of CARQUEST’s commercial capabilities and Team Member parts knowledge into Advance Auto Parts stores while expanding DIY into select company operated CARQUEST stores.
The transaction will add 38 General Parts distribution centers, 1,248 company-operated CARQUEST locations across the United States and Canada and will service approximately 1,400 independently-owned CARQUEST locations primarily in the United States and Canada. Advance will also add WORLDPAC, a leading importer and distributor of original equipment and quality aftermarket replacement automotive parts to import specialists in North America and Puerto Rico operating 105 facilities across the United States and Canada, to its operations.