ROANOKE, Va. – Advance Auto Parts announced it has completed its acquisition of General Parts International Inc. (GPI).
The transaction creates the largest automotive aftermarket parts provider in North America, with annual sales of more than $9.3 billion and more than 70,000 employees. Advance said the strong combined financial profile allowed for an all-cash transaction and supports the company’s commitment to maintaining its investment grade ratings.
According to Advance, the acquisition of General Parts accelerates the company’s growth strategy and enhances shareholder value through a number of strategic benefits. The retailer said that it now becomes the No. 1 aftermarket parts provider in North America with a balanced platform for growth between Do-It-yourself (DIY) and commercial, and also becomes the No. 1 distributor of import automotive parts and the largest automotive aftermarket business-to-business e-commerce platform in North America.
The acquisition also provides Advance with complete coast-to-coast coverage with approximately 5,300 company-operated stores across North America. The company says the move expands Advance’s product and category offerings in both core and new product lines (i.e. paint and heavy-duty), creates new sales channel with independent customers and broadens ability to grow with attractive customer segments such as larger bay garages, import specialists, national accounts, and fleet and government programs.
Another benefit will be Advance’s ability to serve customers through the transfer of CARQUEST’s commercial capabilities and employee parts knowledge into Advance stores while expanding DIY into select company operated CARQUEST stores. Advance said this combination expands key capabilities in customer service through enhanced daily replenishment and customer loyalty programs to a larger truck fleet and a significantly expanded commercial sales team.
“We are excited about the completion of this transaction and the opportunity it presents for our customers and the over 70,000 team members," said Darren Jackson, Advance Auto Parts CEO. "This combination positions Advance as the largest automotive aftermarket provider of parts, accessories, batteries and maintenance items in North America. Strategically, it provides us with a compelling opportunity to expand our geographical presence, channels of distribution and commercial capabilities to better serve customers and deliver value to shareholders.”
As a result of the closing of this transaction, Advance will add to its operations 38 General Parts distribution centers, 1,248 company operated CARQUEST locations across the U.S. and Canada, and will service approximately 1,400 independently owned CARQUEST locations primarily in the U.S. and Canada. Advance also will add WORLDPAC, a leading importer and distributor of original equipment and quality aftermarket replacement automotive parts to import specialists in North America and Puerto Rico operating 105 facilities across the U.S. and Canada, to its operations.
