CSK Auto Corporation (NYSE: CAO) was one of the largest specialty retailers of auto parts and accessories in the Western United States, operating under the Checker, Schuck's, Kragen and Murray's brands. Under the merger agreement, CSK shareholders received $11.00 of O'Reilly common stock (subject to a collar) plus $1.00 in cash per share. Each CSK share was converted into 0.4285 of an O'Reilly share plus $1.00 in cash. The combination created the third-largest national auto parts retailer with approximately 3,200 stores and pro forma 2007 revenues of approximately $4.4 billion.
- 01 Highly complementary Western U.S. footprint with minimal geographic overlap
- 02 giving O'Reilly an instant national platform
Today is an exciting day for both O'Reilly and CSK shareholders. As a combined company, we will be even stronger and more competitive, with the ability to better meet the continuing evolution of the automotive aftermarket industry.
The benefits of this transaction are very compelling. After careful consideration of a number of viable alternatives, our Board has determined that partnering with O'Reilly is clearly the best course of action for our shareholders.