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.

Results for AAP
Ward Anders
16 Apr 14 08:04:40
Should you buy $AAP $HON $LPI $GAIN #StockMarket http://t.co/AeuLRc2FhB
Esau Braxton
16 Apr 14 07:21:45
Small-cap stocks making 52-wk highs $AAP $CA $CVI $OPK View now http://t.co/pWaVfkBw16
Gaige Gelsonya
16 Apr 14 07:05:52
Get Free research on $DTE $AAP $WEC $BWP Give it a try http://t.co/QqBo55tFKL
Crew Dailyoxj
16 Apr 14 06:12:58
Todays Stocks you should be watching $NTRS $HP $AAP $USD Click http://t.co/gF5pLqWPll
Braylin McQuillen
16 Apr 14 05:49:37
Awesome #Stock #Research $AAP $JLL $TEX $GLD #liquidity http://t.co/ZMgnz4JfFb
Maksim Latimer
16 Apr 14 05:43:06
$AAP Pep Boys Breaks Even in Q4, Misses Ests http://t.co/O8EmZNwOE4
Luther Cox
16 Apr 14 05:39:38
Todays Stocks you should Watch $SEIC $VMW $AAP $WTW #investing http://t.co/mwCYtdlLAB
Kermit Bailey
16 Apr 14 03:43:18
$PH #Pennystock Research on $AAP $IACI $DF #financial http://t.co/6h2InxIBdw
Esau Braxton
16 Apr 14 03:17:47
$AAP Pep Boys Breaks Even in Q4, Misses Ests http://t.co/nKIxbgOpEf
Gordeon Gecko
16 Apr 14 02:22:26
Small-cap stocks breaking 52-wk high prices $AAP $FTI $SCI $GAIN #newsletter http://t.co/IuefE7nbOj
Ansel Galvan
16 Apr 14 02:07:06
$EXPD Seeking the next hot #pennystock $AAP $DHR $CAG #StockMarket http://t.co/qrg5WndNk1
Octavio Van
16 Apr 14 02:05:00
Stocks I'm keeping my Eye on...should you? $WDC $AAP $CDNS $RT Worth a look http://t.co/ejKLnXDID0
Maxx Leatherby
16 Apr 14 00:13:07
$YHOO Are you hanging on to $AAP $DHR $IBM #liquidity http://t.co/Gp7TDDOA6l
Prescott Lewis
16 Apr 14 00:03:12
Are you looking for winners like $WSM $PLD $AAP $YOD I suggest http://t.co/VTFs18CvP7
Mari Keith
15 Apr 14 23:56:48
Stocks I'm keeping my Eye on...should you? $AAP $DHR $ATK $S #money http://t.co/KMfOaicdgj
Wiser Picker
15 Apr 14 23:04:17
Is it breakout time on $STR $KORS $AAP $GRPN #Research http://t.co/a6SNEQHg4U
Brecken Khamba
15 Apr 14 20:55:17
$BR Should you buy $AAP $IBM $GRPN #financial http://t.co/O9m6syUmBQ
Thor Edeson
15 Apr 14 19:29:08
$CNH Some Stocks to Watch $AAP $SEAS $CLF Goto http://t.co/qGGVBypabd
Darryl Kendal
15 Apr 14 19:06:59
Stocks to Watch this week $AAP $LLL $AMTD $CADX #wealthmanagement http://t.co/3B1IbsYjwE
Kamren Martinez
15 Apr 14 18:58:56
Whats going on with $AAP $PANW $CLX $CAG #investing http://t.co/cCcvFLCQNh
Franco Cox
15 Apr 14 18:20:10
Should you hold or add to $AAP $SEAS $AWI $RT #financialnews http://t.co/GD0cmznCtS
15 Apr 14 16:48:33
$AAP Meet the Stars of the NHRA Mello Yello Series http://t.co/JEKq8erkAR
15 Apr 14 14:56:04
$AAP Raffles, other promotional events boost retail sector in Dubai http://t.co/x8RS6c7CIB
Alfred Jaxon
15 Apr 14 14:11:46
This weeks Stocks you should Watch $AAP $PCG $WRB $QLYS Goto http://t.co/2VzxOkNUOO
Sky Grady
15 Apr 14 13:21:40
Get research on $EW $JBL $AAP $LIVE #economy http://t.co/8xVz7HRC58
Stock Market News
15 Apr 14 13:15:29
Is it breakout time on $AAP $GXP $CTSH $DUST View now http://t.co/69H526HXPl
15 Apr 14 13:08:04
$AAP Raffles, other promotional events boost retail sector in Dubai http://t.co/UuwZm8yuxO
Lynn Flaherty
15 Apr 14 12:11:57
Buy or sell? $AAP $CFX $TIF $ISRG #personalfinance http://t.co/9N9R38wHbV
Ray Showpay
15 Apr 14 11:37:56
RT @zerosum24: I am encourage how $AAP has held up in the carnage, but needs to get a clean break of 52 to 54 to give us a chance at a much…
roberto pedone
15 Apr 14 11:30:28
I am encourage how $AAP has held up in the carnage, but needs to get a clean break of 52 to 54 to give us a chance at a much bigger run.
Calloway Domville
15 Apr 14 11:25:24
Is it breakout time on $NATI $NKE $AAP $FB #personalfinance http://t.co/6BNxas4OFh
Brick Brocky
15 Apr 14 11:23:06
#Best #Pennystock research $AAP $CDNS $SWI $CBM #economy http://t.co/vXJmZEAJ2B
Ray Showpay
15 Apr 14 10:30:04
@rossgreenspan @biggercapital I see the same stupid tweet that buffet doesn't like the $aap CEO lol so lame
Josiah Balderasne
15 Apr 14 10:24:18
Are you considering selling $AAP $DLB $SCI $CLF #Stock http://t.co/0Tr1j4RWOi
Darryl Kendal
15 Apr 14 10:22:37
$AAP Pep Boys Breaks Even in Q4, Misses Ests http://t.co/kSjWdtlJgi
Jaycob Keating
15 Apr 14 09:46:31
$DPZ Are you considering selling $AAP $CVX $IGN Try this http://t.co/7Gv3JwFvJf
Ansel Carson
15 Apr 14 09:11:59
Is it breakout time on $AM $BR $AAP $OPK Give it a try http://t.co/qudW6Ebtl7
Arnulfo Adamson
15 Apr 14 09:10:14
Awesome #Stock #Research $AAP $CVX $UHAL $IR #Stock http://t.co/orFd1uYznm
Insider Trade Alerts
15 Apr 14 08:59:38
$AAP Pep Boys Breaks Even in Q4, Misses Ests http://t.co/Ip8oqDgykt
15 Apr 14 08:56:07
$AAP: Pep Boys Breaks Even in Q4, Misses Ests http://t.co/6s7IKaqkYq
Braylin McQuillen
15 Apr 14 08:55:13
Seeking the next hot #pennystock $SLB $DTE $AAP $PCLN Give it a try http://t.co/t98zO2n3sz
15 Apr 14 08:36:29
$AAP - Pep Boys Breaks Even in Q4, Misses Ests -> http://t.co/h3arwUyI62 #stock #stocks #stockaction
Financial Alerts
15 Apr 14 08:26:44
Insider Trading updates on $CCK $JOE $AAP $CADX #equity http://t.co/yCsb3xaSSC
Maddie Messina
15 Apr 14 08:18:22
#Stock Watchlist. Dont be left behind $AAP $KO $ABBV $AIG Goto http://t.co/i762WRGZze
Rob McGavern
15 Apr 14 07:58:00
Wow. Great #Stock #Research on $JCP $ALLE $AAP $LGND Must have http://t.co/CBA0h9rQir
Jaron Baker
15 Apr 14 06:45:45
Stocks to Watch this week $GS $SE $AAP $FXY I suggest http://t.co/AA1emWX0UT
Market Int Center
15 Apr 14 06:35:30
Advance Auto Parts $AAP Showing Support Near $114.38 ( http://t.co/HKK14w9ot8 )
Dimitri Anderson
15 Apr 14 06:29:22
Avoid mistakes like $AAP $AIG $MDU $RT #NSE http://t.co/3jepyiMcyA
Cinthia Booker
15 Apr 14 06:14:33
Are you thinking of selling $CIT $SLH $AAP $DO Give it a try http://t.co/9Zuta5JB50
15 Apr 14 06:10:36
$AAP Pep Boys Breaks Even in Q4, Misses Ests http://t.co/FcdePrB4H0
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.