Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?


Advanced Auto Parts Spends $2 Billion to Become Biggest Auto Parts Retailer in North America

By  +Follow October 16, 2013 8:43AM
Tickers Mentioned:

Advanced Auto Parts (AAP) is making a move to become the biggest player in the North American auto parts industry, saying on Wednesday that it has agreed to acquire privately held General Parts International, Inc. in an all-cash deal with an enterprise value of $2.04 billion. With the purchase, Advanced Auto Parts will add 1,246 corporate-owned stores and 1.418 independently owned Carquest locations, giving it a platform and scale across the continent. General Parts also owns Worldpac, a supplier of replacement parts for imported vehicle brands.

The merge company will have annual sales of $9.2 billion, edging past current leader AutoZone Inc. (AZO) , which recorded about $9 billion in sales for the year ended August 31.

Advanced expects the acquisition will result in about $160 million in annual run-rate synergies that will be realized three years after closing.  The company also expects increased free cash flow and deliver estimated fiscal 2014 earnings per share accretion in excess of 20 percent, less one-time expenses.

Both boards have approved the transaction, which is expected to close late this year or early in 2014.

O. Temple Sloan, III, is expected to join the board at Advanced Auto Parts and will retain his position as president of General Parts, reporting to Advanced chief executive Darren Jackson. The combined company will remain headquartered in Roanoke, Virginia, the current home of Advanced, although it will keep its presence in Raleigh, North Carolina (General’s headquarters) as well.

“This transformational transaction provides a compelling strategic opportunity for Advanced to expand our geographic presence and commercial capabilities to better serve customers,” said Jackson in a statement this morning.

“The combination with Advance Auto Parts is the next logical step in our company’s evolution. Advance’s retail presence, strong capability infrastructure and acquisition integration experience combined with GPII’s leadership in the commercial, independent and import segments creates a powerful platform to drive profitable growth,” added Sloan.

Advanced has bought its way to become the biggest auto parts player in North America to offset tepid sales as booming auto sales are keeping fewer people from needing replacement parts.  In December the company bought BWP Distributors for an undisclosed cash amount.  As part of that deal, Advanced picked-up 124 BWP company-owned stores transferred the rights to distribute to 92 independently owned locations to an affiliate of General Parts.

Wall Street is cheering the acquisition, sending shares of AAP roaring ahead 16 percent to $96 in morning trading, including printing a new to all-time high at $99.30.  Through Tuesday’s close at $82.50, shares were up about 15 percent so far in 2013.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for AAP
the fernando
22 Nov 14 18:48:11
RT @DigDugTrader: Got Profits? :)) Toss a few into our take on the coming Snowmageddon. The lift tickets... $AAP $CAB $D $DECK $GNRC $GT $M…
Dave & Poohdog
22 Nov 14 10:21:37
Got Profits? :)) Toss a few into our take on the coming Snowmageddon. The lift tickets... $AAP $CAB $D $DECK $GNRC $GT $MTN $PLOW $UA $WWW
PennyStock Zone
22 Nov 14 09:59:49
Review of Super_Trades service - see what all his subs are raving about! http://t.co/Vt78WtDQYa $BAH $GLNG $AAP #trading
Suzy Runyon
22 Nov 14 09:00:44
#Stocks you might want to hold onto $NVR $EGN $AAP $SSO #wealthmanagement http://t.co/2x3oKhuMea
Ben Silverberg
22 Nov 14 05:36:23
Bad winter weather typically implies more car accidents which lead to more repairs, consider $PBY +3.2% $AAP +0.2% $MNRO +4.3% $PRTS +1.1%
Ruth Patrick
22 Nov 14 02:12:20
Great #Stock Newsletter you must have $BEAV $PH $AAP $CBM #NASDAQ http://t.co/40k4SAWjCF
Alesia Quick
22 Nov 14 00:55:19
Awesome #Stock #Research on $AAP $ROST $WCRX $GRPN Try this http://t.co/wRtddaBh7e
PennyStock Zone
22 Nov 14 00:33:16
Review of Super_Trades service - see what all his subs are raving about! http://t.co/Vt78WtDQYa $BAH $GLNG $AAP #trading
Terisa Moseley
21 Nov 14 22:51:10
Great #Stock Newsletter you must have $ADS $AAP $RES $DO #singedinvestor http://t.co/9M9A4f47GO
Kohen Birch
21 Nov 14 22:51:08
#Stock Market Reports you need on $VMW $AAP $USM $CSIQ #NSE http://t.co/wUXX7MeYOv
Mauro Atwood
21 Nov 14 16:36:42
Looking for the next $ROK $NSR $AAP $BWP #investing http://t.co/bLWxuwIcP3
Lanelle Fultz
21 Nov 14 15:05:07
Get #Pennystock Research on $JBL $AAP $TYC $CSIQ #financial http://t.co/eRK4Cqp8yz
21 Nov 14 14:45:35
$AAP Lawmaker and Former Delhi Speaker MS Dhir Joins #BJP http://t.co/JujiFESVFC
Clair Voight
21 Nov 14 14:32:18
$AAP Advance Auto Parts Earnings Rise 17% http://t.co/6EMI9Sfg4b
Carlyn Mccloskey
21 Nov 14 13:38:24
Looking for research on $WMB $TSCO $AAP $FEYE Visit http://t.co/2ONId5V2vC
Shaquita Foy
21 Nov 14 12:41:45
#Stocks you might want to hold onto $ROC $LRCX $AAP $RAX #wealthmanagement http://t.co/RmIuUBrKGd
PennyStock Zone
21 Nov 14 12:31:34
Review of Super_Trades service - see what all his subs are raving about! http://t.co/Vt78WtDQYa $BAH $GLNG $AAP #trading
Tara White
21 Nov 14 12:18:50
Could be breaktout time on $BKW $AES $AAP $S Give it a try http://t.co/b1bD7YcOKF
Gussie Robinette
21 Nov 14 10:49:02
#Stocks you might want to buy $BMR $DTE $AAP $CSIQ #liquidity http://t.co/88zR4yxBIu
Mellissa Fuentes
21 Nov 14 10:00:42
Are you looking for more winners like $VOYA $AAP $ADM $ISRG Visit http://t.co/TbMAGK0mZe
John Ablemann
21 Nov 14 09:01:43
$AAP Advance Auto Parts Earnings Rise 17% http://t.co/MtOBiJ57PQ
Irma Doucet
21 Nov 14 08:02:35
$AAP Advance Auto Parts Earnings Rise 17% http://t.co/96p2RcKVeH
Clair Voight
21 Nov 14 08:02:35
$AAP Insider Selling: Advance Auto Parts SVP Unloads 2031 Shares of Stock (AAP) http://t.co/gyGDfHu2ze
Market Int Center
21 Nov 14 06:51:01
Potential Advance Auto Parts $AAP Trade Has 3.03% Downside Protection ( http://t.co/psjxGf78I7 )
Terisa Moseley
21 Nov 14 06:31:04
Did you lose money on $AAP $NSM $NOC $CSIQ #NSE http://t.co/xHS0UHpYDe
Octavius Chandler
21 Nov 14 05:31:45
Are you looking for more winners like $AAP $JLL $SCI $ABX Visit http://t.co/qctOQ5Lepr
Ali Tyree
21 Nov 14 04:21:57
Find out the latest on $AAP $DHR $L $CSIQ #investing http://t.co/m7JrDeRYlk
Michelle Emery
21 Nov 14 03:40:06
Latest information on #stocks like $CPN $TSCO $AAP $CI #StockMarket http://t.co/C62Y9v8oYQ
Nga Fortenberry
21 Nov 14 02:39:16
Shoud you sell or hold stocks like $RAI $AAP $DDS $RAX Goto http://t.co/YvymJUjFQV
Cinda Mock
21 Nov 14 02:20:52
Bearish or Bullish on these #stocks $ROC $ATVI $AAP $SSO #wealthmanagement ACCOUNT_SUSPENDED
Merideth Walling
21 Nov 14 02:07:15
Are you looking to buy $CHD $LPNT $AAP $AAPL #money ACCOUNT_SUSPENDED
Ali Tyree
21 Nov 14 01:38:05
Looking for the next winners like $AAP $MDLZ $UHAL $QLYS #money http://t.co/2HTCK9TLlX
Elma Becnel
21 Nov 14 00:18:05
Get great research on stocks $CIT $AAPL $AAP $SLW #Stock ACCOUNT_SUSPENDED
Albert Davies
20 Nov 14 23:20:12
Are you putting your money in $RF $LNC $AAP $LGND Try this http://t.co/FClLyVuyuv
Horacio Coronado
20 Nov 14 23:19:42
$EXPD Great #Stock Newsletter on $AAP $CRL $CRAY #singedinvestor ACCOUNT_SUSPENDED
Michelle Emery
20 Nov 14 21:50:06
Looking for the next winners like $AAP $PC $MDU $IBM #economy http://t.co/j6A70UQmJQ
Audrey Machado
20 Nov 14 21:49:54
Todays movers to research $APC $AAP $PPL $RAX #personalfinance http://t.co/ztOZjuTQ70
Mercedes Bullard
20 Nov 14 20:31:20
Whats going on with $AAP $RHT $CL $AMZN I suggest http://t.co/LpvBU0Lo8b
Carina Mata
20 Nov 14 19:57:50
$VOYA Todays Stocks you should Watch $AAP $CRL $IR #wealthmanagement ACCOUNT_SUSPENDED
Tamra Hidalgo
20 Nov 14 19:33:14
#Stocks you might want to sell $AAP $GWW $M $GOOG #wallstreet ACCOUNT_SUSPENDED
Mauro Atwood
20 Nov 14 19:10:39
Bad #Invesments like got you down $AAP $IBM $CVI $GAIN Visit http://t.co/WSCr8vGbDK
Elma Becnel
20 Nov 14 19:03:17
Great #Stock Newsletter on $AAP $PANW $MDU $TRLA Try this ACCOUNT_SUSPENDED
Albert Davies
20 Nov 14 18:39:29
Todays Stocks you should be watching $ROC $ALLE $AAP $CAG #NSE http://t.co/sWUhFS6563
Thad Bowens
20 Nov 14 18:24:55
$SIVB Buying or selling? $AAP $CVX $CHTP #investing ACCOUNT_SUSPENDED
Evan Gillette
20 Nov 14 17:22:45
$NVE Small-cap stocks making 52-wk highs $AAP $MWV $TRLA I suggest ACCOUNT_SUSPENDED
20 Nov 14 17:07:10
Insider Selling: Advance Auto Parts SVP Unloads 2,031 Shares of Stock $AAP http://t.co/0PmNn77qN3
Dot Doe
20 Nov 14 17:02:58
Cheyenne Ingalls
20 Nov 14 17:01:28
Should you buy $AAP $DDS $MET $CLF #Research ACCOUNT_SUSPENDED
Opal Metzler
20 Nov 14 16:43:21
$CERN Get research on $AAP $ELS $GRPN #Research ACCOUNT_SUSPENDED
Margarite Mott
20 Nov 14 16:42:01
$EXPD Are you looking for winners like $AAP $EIX $PCLN I suggest ACCOUNT_SUSPENDED
By  +Follow October 16, 2013 8:43AM



blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.