Genuine Parts Company announced today an acquisition for its Automotive Parts Group.
GPC Asia Pacific, the company's wholly owned automotive distribution company based in Melbourne, Australia, has entered into a definitive agreement to acquire Covs Parts Pty. Ltd. from its parent company, Automotive Holdings Group.
AHG is a publicly listed automotive retailing and logistics group with operations across Australasia. The transaction is expected to close by October 1, 2015.
Covs Parts, headquartered in Welshpool, Western Australia, is a leading distributor across the state of Western Australia, focused on original equipment and aftermarket automotive parts, mining and industrial consumables and truck products. Covs Parts was established in 1929 and serves its broad and diverse customer base from a 25 branch distribution network. The company expects the acquired business to generate annual revenues of approximately $90 million (U.S.)
Tom Gallagher, Chairman and Chief Executive Officer of Genuine Parts Company, said, "Covs Parts was a very attractive business opportunity for us in the Australasian market. The addition of this business serves to further expand our presence and scale in Western Australia and also builds on our commercial growth strategy. We are pleased to welcome the Covs Parts team into the Asia Pacific and GPC family and expect the combination of our organizations to be a great fit, both financially and strategically. We look forward to the many contributions the Covs Parts team will make in the years ahead."
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