Advance Auto Parts acquired General Parts International, Inc. for $2.04 billion (enterprise value), a transaction completed in January 2014, structured as all cash.
General Parts International, Inc. operates in Commercial automotive parts distribution, is based in Raleigh, North Carolina (operations across the US and Canada). General Parts International (GPII) was a privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets, operating under the CARQUEST and WORLDPAC brands. The deal added 38 distribution centers, 1,248 company-operated CARQUEST locations across the US and Canada, roughly 1,400 independently owned CARQUEST locations, and WORLDPAC's 105 import-parts facilities. It created the largest automotive aftermarket parts provider in North America, with combined annual sales over $9.3 billion and more than 70,000 team members.
Advance framed the deal as creating the #1 automotive aftermarket parts provider in North America with a balanced DIY and Commercial platform, the #1 distributor of import automotive parts, and the largest B2B e-commerce platform in the sector, while delivering coast-to-coast scale and expanding into new product lines such as paint and heavy duty.
GPII brought commercial and import-parts leadership, a large independent-dealer network, and coast-to-coast distribution that complemented Advance's DIY retail footprint. Approximately $160 million of annual run-rate synergies expected within three years of closing; estimated FY14 Cash EPS accretion of more than 20% excluding one-time costs to achieve synergies. GPII operated as a wholly owned subsidiary; O. Temple Sloan III continued as President of GPII, reporting to the Advance CEO, and was expected to join the Advance board.
This transformational transaction provides a compelling strategic opportunity for Advance to expand our geographic presence and commercial capabilities to better serve customers. The addition of 1,246 company operated stores and 1,418 independently owned CARQUEST locations provides us with an immediate platform and scale across North America, full market coverage and the opportunity to position ourselves as the market leader in the commercial business.Darren R. Jackson, Chief Executive Officer, Advance Auto Parts
We are excited to bring together two highly complementary automotive aftermarket companies. 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.O. Temple Sloan III, President, General Parts International
Advisory firms were not disclosed for this transaction.