Advance Auto Parts to acquire General Parts International for $2.04 billion
Advance Auto Parts, Inc., a provider of automotive aftermarket parts, accessories, batteries, and maintenance items, announced that it has entered into a definitive agreement to acquire General Parts International Inc. (GPII), a privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands.
The all-cash transaction has an enterprise value of $2.04 billion. The transaction has been approved by the boards of directors of both companies.
“This strategic transaction presents an exciting opportunity for value creation and Advance is dedicated to delivering on the compelling financial potential this combination creates while remaining committed to maintaining our investment grade credit rating,” the company said in a statement.
The transaction creates the largest automotive aftermarket parts provider in North America, with annual sales of over $9.2 billion and more than 70,000 employees. The strong combined financial profile allows for an all-cash transaction and supports Advance’s commitment to maintain its investment grade rating.