Automotive replacement parts distributor Genuine Parts Co. (GPC: Quote) has agreed to acquire the remaining 70% stake of Exego Group, headquartered in Melbourne, Australia, for about $800 million, including the assumption of certain debt.
Earlier, the company had bought a 30% interest in the Exego Group on January 1, 2012, and held the option to buy the rest of the Exego Group’s shares at a later date, subject to Exego meeting certain earnings thresholds. The company plans to finance the balance of the purchase via a combination of cash and borrowings. The transaction may close on April 1, 2013.
Established in 1922, Exego Group, is an aftermarket distributor of automotive replacement parts and accessories in Australasia, with annual revenues exceeding $1 billion and a company-owned store footprint of over 430 locations across Australia and New Zealand.
Genuine Parts’ Chairman and Chief Executive stated, “Based on our positive experience over the last 14 months with Exego, we believe that 100% ownership of their company best positions us to participate in the ongoing and significant growth opportunities in the Australasian aftermarket. Exego Group, with its growth potential, leading market position and a long and successful 90 year history, is an accretive business investment that will benefit our shareholders in 2013 and over the long-term.”
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by RTT Staff Writer
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