Genuine Parts Company and Inenco have entered into an agreement where Inenco will issue new shares to Genuine Parts Company, representing a 35% stake in Inenco for approximately $70 million (US) in cash. The effective date of the investment is April 3, 2017.
Inenco Group, founded in 1954 and headquartered in Sydney, Australia, is one of Australasia's leading industrial distributors of key product categories such as bearings, power transmission and seals. It has 161 locations across Australia and New Zealand as well as an emerging presence in Asia, and generates estimated annual revenues of approximately $325 million (US).
The parties have agreed to a structure by which Genuine Parts Company will have the opportunity to acquire the remaining 65% stake in Inenco at a later date, subject to certain conditions being satisfied.
Paul Donahue, President and Chief Executive Officer, said, "The Inenco investment offers Genuine Parts Company the opportunity to build on its presence in Australasia and join with a leading industrial distributor in the large and growing Australasian marketplace. Led by an experienced and talented management team, Inenco is a market leader with a long and successful history, world class supplier partners and an extensive and diverse customer base. We are excited for both the automotive and industrial growth prospects in this geography and are confident that our investment in Inenco will serve to benefit our shareholders over the long-term."
Mitchel Martin-Weber, Director of Inenco, said, "We are very pleased to partner with Genuine Parts Company as they expand their industrial footprint into Australasia. Their value based sales philosophy, understanding of our industry and commitment to future growth align well with the goals and values at Inenco, and we look forward to growing our business together."
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