Boston, MA 10\/18\/2013 (wallstreetpr) –\u00a0Delware-based Advance Auto Parts, Inc. (NYSE:AAP), will shortly acquire competitor General Parts International (GPI) for $2.04 billion.\u00a0 The announcement has not only led to 17% surge in share prices but also an \u2018unsecured\u2019 Baa3 senior rating by Moody\u2019s Investor Services.\u00a0 According to Moody\u2019s Investor Service Vice President Charlie OShea, \u201cAdvance’s acquisition of GPI is a value-adding and sensibly-priced transaction.”<\/p>\n
GPI operates Carquest repair chain<\/b><\/p>\n
General Parts is one of the largest operator of Carquest, the chain of auto repair spare parts shops, besides owning WorldPac, the imported auto replacement parts brand with an annual sale figures of $2.9 billion.<\/p>\n
Currently, AAP annual sales are $9.2 billion; matching EPS guidance of $5.30 to $5.45 for 2013.<\/p>\n
The revival of US auto industry in June this year, post turnaround in global recession, has led to the growth of the auto spare parts industry in the country.\u00a0 One of the primary beneficiaries from this economic turnaround has been Advance Automotive.<\/p>\n
Where traditionally AAP has been an auto repair\/spare parts store chain, the acquisition now provides the company an entry into the more \u2018elite\u2019 commercial automotive repair segment, considering the fact that, 85% of Caquest sales are in the commercial repair segment.<\/p>\n
AAP acquisition will push AutoZone to second spot<\/b><\/p>\n
Currently, the largest players in the automotive spare parts segment in US is AutoZone Inc (AZO) with an adjusted sales figure of $9billion for year ending August 31. Following the acquisition of the privately-held GPI, AAP will grow to be the largest \u2018automotive aftermarket parts, accessories and batteries\u2019 provider in North America with combined assets of $160 million. The annual sales for the combined company are predicted to be $9.2billion.<\/p>\n
Advance Auto, has also disclosed that the recent acquisition of BWP Distributors has led to 4.3 percent rise in sales.<\/p>\n
Advance Auto recorded 16%rise in shares closing at $95.63 on the NYSE on Wednesday.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 10\/18\/2013 (wallstreetpr) –\u00a0Delware-based Advance Auto Parts, Inc. (NYSE:AAP), will shortly acquire competitor General Parts International (GPI) for $2.04 billion.\u00a0 The announcement has not […]<\/p>\n","protected":false},"author":10,"featured_media":10441,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2018],"tags":[3482,3481,3479,3480],"stock_ticker":[],"class_list":["post-10440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-automobile","tag-aap","tag-advance-auto-parts-inc","tag-advance-auto-parts-inc-nyseaap","tag-nyseaap","entry"],"acf":[],"yoast_head":"\n