More news of consolidation in the parts retail and distribution segment today. Advance Auto Parts
has just announced that it has entered into a definitive purchase agreement to acquire B.W.P. Distributors, Inc. (BWP) in an all-cash transaction. The deal is expected to close at the end of December, subject to the satisfaction of certain customary conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
This follows yesterday's news that Autopart International (which is owned by Advance) is acquiring New York-based Steinway Auto Parts
. And also yesterday, it was announced that O'Reilly is acquiring the auto parts business of VIP Parts, Tires & Service
Founded in 1962, BWP is a privately held company that supplies, markets and distributes automotive aftermarket parts and products principally to commercial customers. Based in Armonk, N.Y., BWP currently operates or supplies 216 locations in Connecticut, Delaware, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont.
Advance says this acquisition will enable the company to continue its expansion in the Northeast, a strategic growth area for Advance. After completion of this transaction, Advance will operate 124 BWP company-owned stores and will transfer the rights to distribute to 92 independently owned locations to an affiliate of General Parts International Inc. (GPI), a privately held auto supply company. Additionally, Advance will continue to operate two of BWP’s distribution centers in Sutton, Mass., and Delran, N.J. GPI will operate BWP’s other distribution center in Armonk, N.Y.
“We are excited about the combination of our two businesses as it will position us for accelerated growth in the Northeast,” said Darren Jackson, president and CEO of Advance Auto Parts. “This new partnership with BWP is another example of Advance’s commitment to long-term growth and serving commercial customers. With our other investments in parts, technology, systems and people, we have enhanced our ability to improve our profitability and increase value for our shareholders. We are also thrilled that Neil Stockel, BWP president, will continue to collaborate with us as we grow our commercial business.”
“We thank Advance Auto Parts for this exciting new relationship," added Stockel. "Our rich history of serving commercial customers, combined with Advance Auto Parts’ best-in-class commercial capabilities, will allow us to build on our strong service reputation with our customers.”