AutoZone takes the top spot in this week’s recap of the most-viewed news stories on AMN. The company announced it received board approval to buy back an additional $750 million of the company’s common stock in connection with its ongoing share repurchase program. This follows the June repurchase of $500 million of the company’s stock. Since the inception of the repurchase program in 1998, AutoZone’s board of directors has authorized $11.2 billion in stock repurchases – including this week’s $750 million. In the same announcement, AutoZone reported that Theodore Ullyot has decided not to stand for re-election to the board at the upcoming stockholders’ meeting in December, due to other business and time commitments.
Another big announcement from the distribution segment this week came from Genuine Parts Co., which announced its expansion into Australasia, with an investment in Melbourne, Australia-based Exego Group. Exego 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. The two companies have entered into a definitive strategic agreement whereby Exego will issue new shares to Genuine Parts Co., representing a 30 percent stake in the company for approximately $150 million (U.S.) in cash. 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. The deal is expected to take effect Dec. 1.
Meanwhile, in the manufacturing sector, Federal-Mogul has expanded internationally as well. Through one of its Indian subsidiaries, Federal-Mogul broke ground earlier this year on a 10-acre site for construction of the new, 38,000-square-meter facility to manufacture a broad portfolio of technologically advanced, environmentally friendly brake friction materials for the OE and aftermarket segments in the automotive, construction, railway and industrial markets. Production is scheduled to begin before the end of 2011. Federal-Mogul is investing approximately $15 million in the new Chennai facility, which will initially produce non-asbestos organic disc brake pads for light vehicles, half block linings for commercial vehicles and brake blocks for railway and industrial customers. The company expects to employ approximately 300 people when the facility is in full operation.
In other supplier news, leading friction materials supplier TMD Friction Group SA announced that its shareholders have reached an agreement with Nisshinbo Holdings Inc. (NISH), a Japanese group listed on the Tokyo Stock Exchange, on the terms of a recommended acquisition of the company. Management from TMD says the company has grown rapidly over the past three years, benefitting from strong growth in fast-growing regions such as China, Brazil and the independent aftermarket. The company says it is now well-positioned, having made significant investment in capacity and product development as well as through targeted acquisitions. NISH’s brake business is operated globally by Nisshinbo Brake Inc. (NISB). The two companies say combining TMD with NISB will create one of the world’s largest automotive brake friction manufacturers, with clear technology leadership and an extensive offering for passenger cars and commercial vehicles. The combined companies will have revenues of more than €1 billion and more than 6,000 employees. Once the transaction is complete, NISH will operate TMD as an independent, wholly owned subsidiary.
Last in our recap of the week’s top news, we learn that the North American Automotive Aftermarket Division of Robert Bosch LLC has named Robert “Bobby” Bloom as its new vice president, independent aftermarket sales. Bloom comes to Bosch with more than 17 years of sales and marketing experience in retail, industrial and wholesale distribution channels. Most recently, he was vice president, marketing for Jacuzzi Group Worldwide. Prior to Jacuzzi, Bloom spent 15 years at Black & Decker in various sales and marketing leadership roles with the DeWALT power tools business in the industrial and commercial construction channels. In his new role at Bosch, Bloom is responsible for independent aftermarket sales, customer service and category management in the United States. He is located in Bosch’s Broadview, Ill., office, reporting directly to Odd Joergenrud, regional president, Automotive Aftermarket Division North America.
