ATLANTA and MELBOURNE, Australia — Genuine Parts Company (GPC) and the Exego Group announced today that they have entered into a definitive strategic agreement whereby Exego will issue new shares to Genuine Parts Co., representing a 30 percent stake in Exego for approximately $150 million (U.S.) in cash.
Exego, headquartered in Melbourne, Australia, is a leading aftermarket distributor of automotive replacement parts and accessories in Australasia, with annual revenues of approximately $1 billion (U.S.) and a company-owned store footprint of more than 430 locations across Australia and New Zealand. Subject to regulatory approvals, the effective date of the investment is expected to be on or around Dec. 1.
GPC will have the option to acquire the remaining shares of the Exego Group at a later date, subject to Exego meeting certain earnings thresholds.
Thomas Gallagher, chairman, president and CEO of Genuine Parts Co., stated, "With this investment, Genuine Parts is well positioned to participate in the significant long-term growth opportunities in the Australasian aftermarket and the potential for targeted growth in Asia. Utilizing an initial minority investment in Exego, we are able to align ourselves with a company that has a leading market position and a long and successful history approaching almost 90 years in the automotive business. Exego is a familiar partner to us, as we have had the benefit of an informal relationship with their team for the last 20 years. The structure of this agreement will truly benefit our shareholders over the long-term and allow us to participate in one of the fastest-growing automotive aftermarkets in the world in a disciplined manner."
Exego Group Managing Director John Moller, added, "We have built a long-standing relationship with GPC and its NAPA group over the past 20 years and we are excited about the expertise and experience we can share between our businesses. NAPA’s broad range of automotive products and strong focus on providing value to its customers align very well with the Exego Group. Genuine Parts Company is a natural long-term owner with a commitment to growth in this industry, and we intend to use the injected funds to pursue this objective."
