Advance Auto Parts Inc. announced today 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 over $9.3 billion and more than 70,000 Team Members. The strong combined financial profile allowed for an all-cash transaction and supports Advance’s commitment to maintaining its investment grade ratings. The acquisition of General Parts accelerates Advance’s growth strategy and enhances shareholder value through the following strategic benefits:
• Creates Market Leader – Transforms Advance into the #1 automotive aftermarket parts provider in North America with a balanced platform for growth between Do-It-yourself (DIY) and Commercial, the #1 distributor of import automotive parts and the largest automotive aftermarket business-to-business e-commerce platform in North America.
• Delivers Scale – Provides Advance 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.
• Accelerates Complementary Market Opportunities – Expands Advance’s product and category offerings in both core and new product lines (i.e. paint and heavy duty), creates new sales channel with independent customers and broadens ability to grow with attractive customer segments such as larger bay garages, import specialists, national accounts and fleet and government programs.
• Strengthens Leading Brands and Capabilities – Enhances Advance’s ability to serve customers through the transfer of CARQUEST’s commercial capabilities and Team Member parts knowledge into Advance stores while expanding DIY into select company operated CARQUEST stores. The combination expands key capabilities in customer service through enhanced daily replenishment and customer loyalty programs to a larger truck fleet and a significantly expanded commercial sales team.
“We are excited about the completion of this transaction and the opportunity it presents for our customers and the over 70,000 team members. This combination positions Advance as the largest automotive aftermarket provider of parts, accessories, batteries, and maintenance items in North America. Strategically it provides us with a compelling opportunity to expand our geographical presence, channels of distribution, and commercial capabilities to better serve customers and deliver value to shareholders,” said Darren R. Jackson, Advance Auto Parts Chief Executive Officer.
As a result of the closing of this transaction, Advance will add to its operations 38 General Parts distribution centers, 1,248 company operated CARQUEST locations across the US and Canada and will service approximately 1,400 independently owned CARQUEST locations primarily in the US 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 US and Canada, to its operations.
Mike Norona, Chief Financial Officer of Advance Auto Parts said, “We are pleased to have closed the transaction and are excited about the financial potential of this compelling combination as we leverage our new size and scale to create value for our shareholders, customers and Team Members.”
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