Genuine Parts Company Announces Sale Of S.P. Richards

Genuine Parts Company Announces Sale Of S.P. Richards

GPC expects to use the net cash proceeds from the transactions to enhance its cash position.

Genuine Parts Company announced recently that it has completed the sale of its S.P. Richards operations through two separate transactions. The company has sold S.P. Richards’ core U.S. operations to an investor group led by industry professionals and has sold S.P. Richards’ Supply Source Enterprises business (SSE), comprised of The Safety Zone and Impact Products operations, to an affiliate of H.I.G. Capital. Both transactions are effective June 30, 2020. GPC expects to use the net cash proceeds from the transactions to enhance its cash position for capital allocation and to repay debt. 

S.P. Richards Co. is a leading national business products wholesaler that distributes more than 98,000 products to 9,000 resellers and distributors throughout the United States from a network of 44 locations. Its core U.S. operations offer products and services in four primary product categories, including general office products, technology products and accessories, office furniture and JanSan and safety supplies, to national and independent business products resellers and janitorial supply distributors. The Safety Zone and Impact Products operations specialize in providing personal protective equipment and janitorial, safety, hygiene and sanitation products to a diversified customer base, including janitorial and sanitation supply distributors, safety products resellers, foodservice and food processing distributors and retailers. 

Paul Donahue, chairman and CEO of GPC, stated, “The sale of S.P. Richards represents the further streamlining of our operations and a significant step forward in our long-term strategy to optimize our portfolio. With this divestiture, we will continue to opportunistically expand our global footprint and strengthen our focus on sustainable, value-driving initiatives associated with our faster growing and higher margin automotive and industrial businesses.”

Donahue added, “On behalf of the GPC board and management team, I want to thank Rick Toppin and the S.P. Richards team, whose hard work and dedication has made these transactions possible. Both the Investor Group and H.I.G. are supported by talented and experienced teams, and we are confident they are the right partners to lead these respective operations into the future. We look forward to working closely with them to support a smooth transition for our employees, customers and supply base, particularly during the ongoing challenges presented by COVID-19.”

Yancey Jones, on behalf of the investor group, said, “Our group comprises several industry leaders who envision a new, industry-changing alignment and partnership among manufacturers, wholesalers and resellers. This represents a shift in the traditional industry supply chain that will eliminate redundant costs and help all partners become more competitive. The acquisition of S.P. Richards’ core U.S. operations represents a major step forward in this process, and we are focused on strengthening our mutually beneficial partnerships and driving long-term, sustainable value creation.”

Rahul Vinnakota, managing director at H.I.G., said, “SSE offers an extensive product portfolio and differentiated value-added services to distributors servicing a wide array of end users across several end markets. We appreciate the loyalty and support of SSE’s strong customer base during these difficult times and look forward to continuing to exceed their expectations in the future. H.I.G. will bring additional expertise and resources to SSE to support management as they continue to broaden SSE’s customer base, expand offerings and enhance services. Importantly, given the critical role of these businesses in the COVID-19 pandemic, we remain committed to ensuring continuity of service to customers while prioritizing the wellbeing of employees.”

J.P. Morgan is acting as financial advisor and Troutman Sanders LLP is acting as legal counsel to GPC. 

B. Riley Financial is acting as financial advisor and Whiteford Taylor Preston, LLP is acting as legal counsel to the investor group. Harris Williams and Robert W. Baird are acting as financial advisors and McDermott, Will & Emery is acting as legal counsel to H.I.G. Capital.

You May Also Like

Aftermarket Data Standards – Beyond ACES

To remain relevant and valuable, the industry standards will continue to evolve and grow. They will never be finished, Scott Luckett affirmed.

Aftermarket-Data-Standards-–-Beyond-ACES

As an industry, the aftermarket is unique and fortunate to have a robust, well-documented set of industry-specific data standards. If you’ve been in the automotive aftermarket since breakfast, you know there are data requirements about the products you sell and the vehicles they fit that are different from anything you’ve seen in any other hard goods industry. Year, Make, Model, Aspiration of the Engine or the Bed Length of your pick-up truck are all critical data to selecting the correct automotive replacement part of one type or another.

The Commercial Tire Market Cautiously Recovering from 2023 Challenges

Pierluigi Cumo, VP of B2B products at Michelin North America, discusses commercial tire expectations for the remainder of the year.

Michelin tires
NexaMotion Group Opens New C&M Location in New Jersey

NMG said the C&M Auto Parts location will offer a complete range of general repair products, catering comprehensively to the diverse needs of the local market.

NexaMotion-Group-Expands-Product-Offering-in-Texas
Advance Auto Parts Offers Race Fans Once-in-a-Lifetime Trip

One winner and a guest will “Do the Double” by attending the Indianapolis 500, before traveling to Charlotte for NASCAR’s 600-mile race.

GPC Acquires Largest NAPA Independent Store Owner in the US

Genuine Parts Company said the acquisition advances its strategic initiative to own more stores in priority markets.

GPC Acquires Largest NAPA Independent Store Owner in the US

Other Posts

HDA’s Colorado Brake & Supply Announces Acquisition

The HDA Truck Pride member has acquired Pueblo Brake & Clutch, Inc.

HDA's Colorado Brake & Supply Announces Acquisition
The Impact of Trade and Tariffs on the Aftermarket

While there are numerous components that make up “landed costs,” duties, taxes and tariffs are a huge factor and can often be a detriment to global trade, says Thomas Cook, managing director at Blue Tiger International.

GPC Reports Q1 2024 Results, Updates Full-Year Outlook

Sales were $5.8B, a 0.3% increase compared to the same period of the prior year.

Fenix Parts Completes Acquisition of Neal Auto Parts

Neal is an automotive recycler servicing the Central Illinois market with a population of approximately 1.3 million people.