Genuine Parts Co. Announces Sale Of Electrical Specialties Group To Audax Private Equity

Genuine Parts Co. Announces Sale Of Electrical Specialties Group To Audax Private Equity

GPC says the sale represents the next step forward in its portfolio optimization strategy.

 

Genuine Parts Co. (GPC) announced today that it has entered into a definitive agreement to sell its wholly owned subsidiary EIS Inc. (EIS), the Electrical Specialties Group of Motion Industries, to Audax Private Equity (Audax).

GPC said it intends to use the net cash proceeds from the transaction in accordance with its disciplined capital allocation strategy. The use of these funds may include potential investments for both organic and acquisitive growth, reinvestments in the business, share repurchases and the repayment of debt. The transaction is expected to close by the end of September 2019, subject to the satisfaction of customary closing conditions.

EIS is a well-established and growing North American fabricator, converter and distributor of electrical process materials, wire, cable and assemblies serving end-user segments in electrical power and related markets. It provides more than 110,000 SKUs from 38 branches and four fabrication facilities to more than 20,000 customers across North America.  

Paul Donahue, chairman and CEO of GPC, stated, “The sale of EIS represents the further streamlining of our operations and another step forward in our strategy to optimize our portfolio and strengthen our focus on sustainable, value-driving initiatives. Consistent with our ongoing acquisition strategy, we continue to execute on our capital allocation priorities to prudently expand our global footprint and capitalize on the growth prospects for our core businesses, while maintaining a strong balance sheet.”

Donahue continued, “I want to thank the entire EIS team, whose hard work and dedication has made this transaction possible. Given Audax’s experience in leading industrial companies to their next stages of growth, I am confident that it is the right partner for EIS, and we look forward to working with Audax to ensure a smooth, successful transition for our employees, customers and supply base.”

Don Bramley, managing director of Audax, added, “We believe EIS is a quality organization with an experienced management team, loyal customer base, strong partnerships and a proven M&A platform that will complement our portfolio of industry leading companies. Audax will provide the expertise and resources to support the EIS leadership team as it continues to broaden its customer base, expand its offerings to adjacent markets and enhance service and support programs for the benefit of all EIS stakeholders.”

J.P. Morgan is acting as financial adviser and Troutman Sanders LLP is acting as legal counsel to GPC. Kirkland & Ellis LLP is serving as legal counsel to Audax.

 

 

 

You May Also Like

APH Expands with Iowa Location

Kurt Croell’s Auto Parts store in New Hampton, Iowa, joined APH and now operates under the name Auto Value of New Hampton.

Auto-Parts-Headquarters-IOwa-

Kurt Croell's Auto Parts store in New Hampton, Iowa, has joined APH's network of independently-owned stores and will now operate under the name Auto Value of New Hampton. Originally established in 1956 as Western Auto, the business underwent several name changes over the years. Most recently, it was known as CARQUEST. In 2008, Kurt Croell took ownership of the store. Managed by Marv Eiler and Kevin Fisher, it has since become a staple in the New Hampton community, APH said.

Fenix Parts Acquires Pacific Rim Auto Parts

Pacific is a specialty automotive recycler focused on eCommerce part listings and sales.

Fenix Parts Acquires Pacific Rim Auto Parts
Advance Auto Parts Announces ‘National Battery Day’ Promo

DieHard battery giveaways and complimentary battery testing will be part of nationwide festivities held on Feb. 18.

Advance Auto Parts Announces Promo for National Battery Day
NPW Welcomes Automotive Installers Warehouse to Its Network

Automotive Installers Warehouse has been an NPW customer since 2013 and has merged with NPW as part of its ongoing expansion.

National Performance auto Parts Warehouse_
Automotive Parts Associates Welcomes Accel Auto Parts

Founded in 2023, Accel is the newest TruStar member of the APA family.

Automotive Parts Associates Welcomes Accel Auto Parts

Other Posts

Federated Upgrades Car Care Center Program

The enhanced program features updated signage, marketing support, image-enhancing tools, wearables, business management assistance and other information to help with day-to-day shop operations.

Federated Upgrades Car Care Center Program
Advance Auto Parts, Baker Mayfield Partner for Super Bowl

If there is a false start penalty during Sunday’s Big Game in Las Vegas, fans can win free DieHard batteries for life.

Auto-Wares Group Wins TCED Super Bowl Contest

As part of the grand prize, Auto-Wares winners will be accompanied by TCED President Elise Rozon.

TCED-Auto-Wares-Super-Bowl
NPW’s FAST Expo Comes to Life in Digital Format

The event shifted to a digital platform to connect vendors, retailers and technicians while offering exclusive discounts.

NPW-FAST-Expo-2024-digital