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. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Signup for our daily newsletter and get our best articles emailed right to you!

Results for AAP
Bluegrass Capital
6 Oct 15 21:08:30
@BluegrassCap $AAP vs $ORLY: owned stores 15% / 37%; store footprint: 7600 / 7200 sqft; DIFM mix: 57% / 42%; given these comparisons,
Bluegrass Capital
6 Oct 15 20:55:31
@BluegrassCap obvious question here is what is achievable with $AAP's customer mix, asset base, current mgmt.?
Bluegrass Capital
6 Oct 15 20:44:28
Advance Auto CEO outlining structural impediments preventing $AAP from achieving margins in line w peers $ORLY $AZO http://t.co/ZjzhDQVBM9
6 Oct 15 19:11:34
@BluegrassCap Every time you tweet about $AAP, I always think "Why did American Apparel acquire an auto parts co?". It's like stocklexia.
Bluegrass Capital
6 Oct 15 19:09:00
General Parts really was a compelling acquisition for $AAP
6 Oct 15 18:48:10
UGA United States Gasoline Fund, LP Current Price http://t.co/yLkEY8pMg6 $UGA $DNKN $AAP $BCE.TO #UGA #stockmarket #nasdaq
6 Oct 15 18:48:10
SWKS Skyworks Solutions Inc. % Change http://t.co/HPSZAwnCdt $SWKS $XBI $ADBE $AAP #SWKS #tradeideas #tradeideas
6 Oct 15 18:44:32
NUGT Direxion Daily Gold Miners Bull 3x Shares Chart http://t.co/vHx8jLEywQ $NUGT $CHK $AAP $XLE #NUGT #stock #stockmarketNWBO…
Stock Forums
6 Oct 15 18:44:06
NUGT Direxion Daily Gold Miners Bull 3x Shares Chart http://t.co/1JxqIv90J9 $NUGT $CHK $AAP $XLE #NUGT #stock #stockmarketNWBO…
Stock Forums
6 Oct 15 18:44:06
NUGT Direxion Daily Gold Miners Bull 3x Shares Chart http://t.co/qdIt5wAcOg $NUGT $CHK $AAP $XLE #NUGT #stock #stockmarket
6 Oct 15 18:42:36
ITB iShares Dow Jones U.S. Home Construction Last Price http://t.co/MEEuTRqsWy $ITB $AAP $ECA.TO $RSX #ITB #pennystocks #invest
Rosner Stocks
6 Oct 15 18:39:03
FXE Currency Shares Euro Trust EOD Data http://t.co/1eLVKY4jBI $FXE $AAP $RGEN $HSE.TO #FXE #stocks #pennystocks
6 Oct 15 18:38:05
EGYH Energy Holdings Intl, Inc. EOD Data http://t.co/xb3cwYIpqr $EGYH $AAP $XONE $DBO #EGYH #stockmarket #share
Rosner Stocks
6 Oct 15 18:36:37
CJTF Gold & Silver Mining of Nevada Inc. Prev Close http://t.co/6hY5g7U34E $CJTF $TBT $XLF $AAP #CJTF #finance #investing
6 Oct 15 18:32:33
AEZS AEterna Zentaris Inc. Dividend http://t.co/4L2SDLb79h $AEZS $HSE.TO $AAP $EFA #AEZS #stockmarket #stockmarket
Rosner Stocks
6 Oct 15 18:32:08
AAP Advance Auto Parts Inc. Stock Forum http://t.co/1XBjWF5bWX $AAP $CVX $TBT $AVXL #AAP #finance #investing
6 Oct 15 18:32:05
AAP Advance Auto Parts Inc. Stock Message Board http://t.co/D8dHBtV3OK $AAP $INTC $CVX $MYEC #AAP #nasdaq #share
6 Oct 15 18:32:04
AAP Advance Auto Parts Inc. Day Low http://t.co/PfVa8YLDDg $AAP $UGA $WMT $SMN #AAP #stock #stockmarket
6 Oct 15 18:32:04
AAP Advance Auto Parts Inc. E.P.S. http://t.co/MkNzn6WbAL $AAP $EOX $XME $EOX #AAP #pennystocks #tradeideas
6 Oct 15 18:32:03
AAP Advance Auto Parts Inc. Ex-Div Date http://t.co/XT1ObYs0dp $AAP $ADI $BLTA $AEM #AAP #share #stock
My Financial Wisdom
6 Oct 15 15:46:29
$AAP is one of the top 5 strongest stocks relative to the S&P 500 Index. http://t.co/2WVCfmdKU8 http://t.co/TXs4sAKH1E
Ryan Wolfe
6 Oct 15 13:19:58
RT @SPCapitalIQ: September's top 10 #SP500 stocks: $CVC $NKE $AAP $TAP $IRM $HCBK $NVDA $TE $NI $WEC http://t.co/IHFFEsLDb4 http://t.co/KFT…
it assessors
6 Oct 15 13:02:27
September's top 10 #SP500 stocks: $CVC $NKE $AAP $TAP $IRM $HCBK $NVDA $TE $NI $WEC http://t.co/6yOcnsHctQ http://t.co/2MgjpzB3rz
S&P Capital IQ
6 Oct 15 13:01:25
September's top 10 #SP500 stocks: $CVC $NKE $AAP $TAP $IRM $HCBK $NVDA $TE $NI $WEC http://t.co/IHFFEsLDb4 http://t.co/KFT9rLQyrT
Bill Gunderson
6 Oct 15 10:55:24
Solid Chart. $ORLY #20 overall. No position. I own $AAP however.
Insider Monkey News
6 Oct 15 08:25:46
Jeffrey Smith Outlines How This Activist Target Can Turn Itself Around $BCO http://t.co/o1gsb27X3B $AAP, $DRI, $M, $MWV
Insider Monkey
6 Oct 15 08:25:44
Jeffrey Smith Outlines How This Activist Target Can Turn Itself Around $BCO http://t.co/jYx7SRF1Vz $AAP, $DRI, $M, $MWV
6 Oct 15 07:30:30
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/8WvnrVmkBS .. $AAC $AAN $AAP
Bluegrass Capital
6 Oct 15 07:09:32
Can the current $AAP management team get it done? Are they entrenched?
6 Oct 15 06:40:09
$AAP declares bankruptcy, but who's surprised? More → http://t.co/oV6M9aRMBP
6 Oct 15 04:44:12
APDN Applied DNA Sciences Inc. P/E Ratio http://t.co/zMbS0EJ9Dn $APDN $AAP $DHI $PFE #APDN #stock #tradeideas
Sleek Money
6 Oct 15 04:25:56
Investors Buy Advance Auto Parts on Weakness $AAP http://t.co/CVenl75alU
Stocks Live App
6 Oct 15 04:04:26
All Time High via @Stocks_Live $AAP $ACGL $ARTNA $ATO $AWR $BNK $CBOE $CDW $CENTA $COR $CTRV $CUBE $ELS $EPAM $FIZZ http://t.co/hyCGkJTwqE
6 Oct 15 02:44:35
XIV VelocityShares Daily Inverse VIX Short Term ETN Ask http://t.co/aTwEVx2M1E $XIV $GILD $AAP $XLE #XIV #finance #pennystocks
6 Oct 15 02:40:17
RSP Guggenheim S&P 500 Equal Weight ETF Stock Forum http://t.co/XPEacWNbjm $RSP $BP $AAP $DHI #RSP #share #nasdaq
6 Oct 15 02:40:16
RTPIX ProFunds Rising Rates 10 Fund Short Sales http://t.co/2MriMNL7eP $RTPIX $SMN $AMRN $AAP #RTPIX #finance #nasdaq
IH News Desk
6 Oct 15 02:34:04
FOGO Fogo de Chao, Inc. Short Sales http://t.co/9TuMmwLhlb $FOGO $AAP $AAP $ECIG #FOGO #stocks #invest
Investors Hangout
6 Oct 15 02:28:09
AAP Advance Auto Parts Inc. Tick http://t.co/IlRqlHex9p $AAP $BMY $ECIG $NAT #AAP #stocks #nasdaq
zooey m
5 Oct 15 20:32:05
ChaytonFalke: Free Video: Trading Psychology Series: Greed http://t.co/QkvUQ9MTb6 #trading #startups #stock $AAP… http://t.co/X3n8d6GPom
5 Oct 15 19:42:51
AAP 191.17 Advance Auto Parts Inc Stock Charts $AAP Last Updated: 10/05/15 Last price: 191.17 Total volume: 88 http://t.co/gAa5tx1cpl
5 Oct 15 19:32:37
AAP Year to date has changed +20.02% percent. +11.06% in the last 30 days. $AAP Advance Auto Parts Inc Full br http://t.co/UkUvnKndnf
IH News Desk
5 Oct 15 15:33:25
$AAP Financials Updated Monday, October 5, 2015 6:12:58 PM $XLY $EWY $FLO $EHIC http://t.co/WklvnR6oue
5 Oct 15 15:30:07
52 Week High $PSA $LMT $AAP $TYL $STZ $NKE $GPN $CSJ $MCD $WDFC $PRK $SNX $VRSK $OSIS $AIZ $EPAM $HCC $LABL http://t.co/UoaZK20vJ4
5 Oct 15 15:12:38
$EOG News Updated Monday, October 5, 2015 5:07:04 PM $PIN $DUST $AAP $TSLA http://t.co/vFOllpleBL
Rosner Stocks
5 Oct 15 14:14:04
$HMY News Updated Monday, October 5, 2015 4:59:24 PM $TGT $BABA $LLY $AAP http://t.co/aU9D0V6hVC
5 Oct 15 13:59:18
'JBEM' new pick 'CALA'.Details here: https://t.co/HZX7dyge43 $AAP $AAU $ABEO $ACAD $ACAS $ACI $ACNB $ACPW
5 Oct 15 13:48:11
$AAP ALERT: New Advance Auto Parts SEC Filing From our Stock News Alerts App
5 Oct 15 13:45:22
$AAP ALERT: New Advance Auto Parts SEC Filing From our Stock News Alerts App
5 Oct 15 13:42:02
$AAP: New Insider Transaction on AAP by Director: http://t.co/d9y80qomoe
Insider Alerts
5 Oct 15 13:41:32
NEW insider transaction on $AAP reported a moment ago: http://t.co/q81jlwX6mS
By  +Follow October 16, 2013 8:43AM



blog comments powered by Disqus

 Today's Must Reads

Market Got You Down?: Here Are Six Hot Stocks

Global Winners and Losers in the Oil Shakeout

This Bull Market is No Stranger to Big Fourth-Quarter Comebacks

When to Sell and When to Rent an Investment Property

Saving the Small-Cap Market


Small-cap stocks offer investors many benefits, ranging from higher growth potential to overlooked value opportuni... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

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

Login or Register