ROANOKE, VA — Advance Auto Parts, Inc. announced that it has acquired all the stock of Sharon, MA-based Autopart International, Inc. (AI) in an all-cash transaction that closed on Thursday.
Highly successful AI provides replacement automotive parts to the growing Do-It-For-Me commercial market, as well as to warehouse distributors and jobbers. In 2004, AI generated annual sales of approximately $90 million. Advance expects this transaction to be immaterial to its financial performance for the third and fourth quarters of 2005.
Privately held AI’s 61 auto parts stores throughout New England and New York state complement Advance’s growing presence in the Northeast. Including the 61 stores acquired in this transaction, Advance now expects its total new store count for 2005 to be in the range of 220 to 230 stores, compared to prior guidance of 150 to 175 stores.
“The commercial market represents an excellent growth opportunity for Advance,” said Jim Wade, executive vice president, business development. “The acquisition of AI augments Advance’s share of the still highly fragmented commercial market.
“AI’s commitment to exceptional quality, prompt service and competitive prices is exactly aligned with our value proposition, making this a terrific fit,” continued Wade. “It is a pleasure to welcome AI’s team members and customers to the Advance Auto Parts family.”
Following a thorough assessment of AI’s business, Advance believes AI’s commercially oriented model and strong brand awareness will benefit by remaining under the AI brand name. AI’s experienced management team, headed by CEO Roger Patkin, will continue to lead AI. He joined AI in 1990, and has served as a member of the Automotive Aftermarket Industry Association’s Board of Directors.
“We are enthusiastic about joining the Advance team,” Patkin said. “AI has been very successful as a private company serving the growing commercial aftermarket and we will now have the resources as part of Advance to realize our full potential.”
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