ATLANTA, March 11, 2013 /PRNewswire/ -- Genuine Parts
Company (NYSE: GPC) announced today that it has entered into a
definitive agreement to acquire the remaining 70% stake of Exego
Group, headquartered in Melbourne,
Australia, for a total purchase price of approximately
$800 million (US$), including the
assumption of certain debt.
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The Company had previously purchased a 30% stake in the Exego
Group on January 1, 2012, and held
the option to acquire the remaining shares of the Exego Group at a
later date, subject to Exego meeting certain earnings
thresholds. The Company expects to finance the balance of the
purchase using a combination of cash and borrowings. Subject
to the satisfaction of customary closing conditions and applicable
regulatory approvals, the acquisition is expected to close on
April 1, 2013.
Exego Group, established in 1922, is a leading aftermarket
distributor of automotive replacement parts and accessories in
Australasia, with annual revenues of more than $1 billion (US$) and a company-owned store
footprint of more than 430 locations across Australia and New
Zealand.
Tom Gallagher, Chairman and Chief
Executive Officer of Genuine Parts Company, stated, "We are very
pleased to enter the final phase of our Exego Group
acquisition. The Exego team exceeded our expectations for
meeting the growth and earnings thresholds outlined in our original
agreement, thus, we were presented with the opportunity to move
forward with our investment earlier than expected. 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."
The Exego Group Managing Director, John
Moller, said, "As we complete the sale of our company, we
are excited to join the Genuine Parts and NAPA family and further
build on our well established relationship. Our business
philosophies and focus on providing value to our customers while
growing the business have aligned very well and served to enhance
our operating performance and financial results. We couldn't
be more pleased by the tremendous commitment of GPC to support our
growth and market leadership position in the Australasian
aftermarket."
Conference Call
Genuine Parts Company will hold a conference call today at
1:00 p.m. ET to discuss the
acquisition and our updated guidance for 2013. Interested parties
may listen to the call on the Company's website, www.genpt.com, by
clicking "Investor Services", or by dialing 877-331-5106,
conference ID 19411375. A replay will also be available on the
Company's website or at 855-859-2056, conference ID 19411375, two
hours after the completion of the call until 12:00 a.m. Eastern time on March 25, 2013.
Forward Looking Statements
Some statements in this report, including, without limitation,
those related to the anticipated closing date of the acquisition,
the financing of the acquisition and the growth opportunities in
the Australasian aftermarket and our ability to participate in
those opportunities as a results of the acquisition, as well as in
other materials we file with the Securities and Exchange Commission
(SEC) or otherwise release to the public and in materials that
we make available on our website, constitute forward-looking
statements that are subject to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Senior officers
may also make verbal statements to analysts, investors, the media
and others that are forward-looking. Forward-looking statements may
relate, for example, to future operations, prospects, strategies,
financial condition, economic performance (including growth and
earnings), industry conditions and demand for our products and
services. The Company cautions that its forward-looking statements
involve risks and uncertainties, and while we believe that our
expectations for the future are reasonable in view of currently
available information, you are cautioned not to place undue
reliance on our forward-looking statements. Actual results or
events may differ materially from those indicated as a result of
various important factors. Such factors may include, among other
things, the inability to complete the acquisition due to failure to
satisfy the customary closing conditions to complete the
acquisition, including the receipt of all regulatory approvals
related to the acquisition, slowing demand for the Company's
products, changes in the Australasian aftermarket, changes in
general economic conditions, including, unemployment, inflation or
deflation, high energy costs, uncertain credit markets and other
macro-economic conditions, the ability to maintain favorable vendor
arrangements and relationships, disruptions in our vendors'
operations, competitive product, service and pricing pressures, the
Company's ability to successfully implement its business
initiatives in each of its four business segments, the Company's
ability to successfully integrate its acquired businesses, the
uncertainties and costs of litigation, as well as other risks and
uncertainties discussed in the Company's Annual Report on Form 10-K
for 2012 and from time to time in the Company's subsequent filings
with the SEC.
Forward-looking statements are only as of the date they are
made, and the Company undertakes no duty to update its
forward-looking statements except as required by law. You are
advised, however, to review any further disclosures we make on
related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other
reports to the SEC.
About Genuine Parts Company
Genuine Parts Company is a distributor of automotive replacement
parts and accessories in the U.S., Canada and Mexico. The Company also distributes
industrial replacement parts in the U.S., Canada and Mexico through its Motion Industries
subsidiary. S. P. Richards Company, the Office Products
Group, distributes business products nationwide in the U.S. and in
Canada. The
Electrical/Electronic Group, EIS, Inc., distributes electrical and
electronic components throughout the U.S., Canada and Mexico. Genuine Parts Company
had 2012 revenues of $13.0
billion.
About Exego Group
Exego Group is the largest automotive aftermarket parts and
accessories supplier in Australia
and New Zealand; reselling and
distributing automotive replacement parts, accessories, and related
automotive tools and equipment through a network of more than 430
stores and a team of more than 4,000 dedicated staff. The
company services both commercial and retail customers.
Established in 1922, Exego Group's predecessor businesses first
began supplying automotive parts and equipment to trade customers
in 1926 and entered the New
Zealand market in the early 1980s. With over 90 years
of operational experience, Exego Group brands are synonymous with
automotive aftermarket products and have a high level of brand
recognition among its commercial and retail customers in
Australia and New Zealand, with more than 175,000 SKUs in
its product range and more than 36,000 commercial customers.
Due to its market leadership and scale, Exego Group has underlying
competitive advantages in branding, procurement and logistics.
SOURCE Genuine Parts Company