Roanoke, Va. -- Advance Auto Parts will acquire General Parts International, a privately held parts maker. The all-cash deal has an enterprise value of $2.04 billion.
Based in Raleigh, N.C., General Parts, which owns the Carquest brand, has 1,246 company operated stores in North America. It also operates 1,418 independently owned Carquest locations primarily in the United States and Canada.
The transaction will create the largest automotive aftermarket parts provider in North America, with annual sales of more than $9.2 billion and more than 70,000 employees. The combined company will be headquartered in Roanoke, Va., and will maintain a presence in Raleigh, N.C.
O. Temple Sloan III, president of General Parts, will continue to serve as president of the company. He will report to Darren Jackson, CEO of Advance Auto Parts, and is expected to join the Advance Auto Parts board of directors.
“This transformational transaction provides a compelling strategic opportunity for Advance to expand our geographic presence and commercial capabilities to better serve customers,” said Jackson. “The addition of 1,246 company-operated stores and 1,418 independently owned Carquest locations provides us with an immediate platform and scale across North America, full market coverage and the opportunity to position ourselves as the market leader in the commercial business. We believe the combination of the two companies is a great fit and the synergy of GPII’s assets with our capabilities will allow us to capitalize on market opportunities that will create value for our shareholders and provide even better service to our customers. We welcome and look forward to working with the talented leaders and team members from GPII.”
The transaction is subject to regulatory approvals and customary closing conditions and is expected to close by late 2013 or early 2014.