Genuine Parts Co. (GPC) agreed to buy the 70% stake of the
Australia-based automotive aftermarket-parts supplier Exego Group
it doesn't already own for $800 million, including the assumption
of certain debt.
In January 2012, Genuine Parts paid roughly $150 million for a
30% stake in Exego, and held the option to acquire the remaining
shares if Exego met certain earnings thresholds.
"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," said Genuine Parts Chairman and
Chief Executive Tom Gallagher.
The company expects to close the latest deal on April 1.
Genuine Parts plans to discuss the acquisition and provide
updated 2013 guidance during a conference call scheduled for Monday
at 1 p.m. EDT.
The operator of the NAPA auto-parts chain has continued to post
sales growth as uneven economic recovery caused more people to keep
their cars longer, increasing demand for aftermarket parts. Last
month, Genuine Parts reported its fourth-quarter earnings rose 19%
amid lower overhead costs and a 3.5% rise in revenue.
Shares closed Friday at $73.93 and were inactive premarket. The
stock has climbed 18% over the past year.
Write to Melodie Warner at melodie.warner@dowjones.com.
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