ATLANTA, Aug. 16, 2019 /PRNewswire/ -- Genuine Parts
Company (NYSE: GPC) announced today that it has entered into a
definitive agreement to sell its wholly-owned subsidiary EIS, Inc.
(EIS), the Electrical Specialties Group of Motion Industries, to
Audax Private Equity (Audax). GPC intends to use the net cash
proceeds from the transaction in accordance with its disciplined
capital allocation strategy. The use of these funds may include
potential investments for both organic and acquisitive growth,
reinvestments in the business, share repurchases and the repayment
of debt. The transaction is expected to close by the end of
September 2019, subject to the
satisfaction of customary closing conditions.
EIS is a well-established and growing North American fabricator,
converter and distributor of electrical process materials, wire,
cable and assemblies serving end-user segments in electrical power
and related markets. It provides more than 110,000 SKUs from 38
branches and four fabrication facilities to more than 20,000
customers across North America.
Paul Donahue, Chairman and Chief
Executive Officer of GPC, stated, "The sale of EIS represents the
further streamlining of our operations and another step forward in
our strategy to optimize our portfolio and strengthen our focus on
sustainable, value-driving initiatives. Consistent with our ongoing
acquisition strategy, we continue to execute on our capital
allocation priorities to prudently expand our global footprint and
capitalize on the growth prospects for our core businesses, while
maintaining a strong balance sheet."
Mr. Donahue continued, "I want to thank the entire EIS team,
whose hard work and dedication has made this transaction possible.
Given Audax's experience in leading industrial companies to their
next stages of growth, I am confident that it is the right partner
for EIS, and we look forward to working with Audax to ensure a
smooth, successful transition for our employees, customers and
supply base."
Don Bramley, Managing Director of
Audax, added, "We believe EIS is a quality organization with an
experienced management team, loyal customer base, strong
partnerships and a proven M&A platform that will complement our
portfolio of industry leading companies. Audax will provide the
expertise and resources to support the EIS leadership team as it
continues to broaden its customer base, expand its offerings to
adjacent markets and enhance service and support programs for the
benefit of all EIS stakeholders."
J.P. Morgan is acting as financial advisor and Troutman Sanders
LLP is acting as legal counsel to GPC. Kirkland & Ellis LLP is
serving as legal counsel to Audax.
Forward Looking Statements
Some statements in this press release, 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. This press release
contains forward-looking statements, including statements regarding
the proposed business transaction between Audax and GPC in which
GPC will sell its Electrical Specialties Group to Audax. From
time to time, oral or written forward-looking statements may also
be included in other information released to the public. These
forward-looking statements are intended to provide management's
current expectations or plans for our future operating and
financial performance, based on assumptions currently believed to
be valid. Forward-looking statements often contain words such as
"expects," "anticipates," "estimates," "intends," "plans,"
"believes," "seeks," "will," "is likely to," "scheduled,"
"positioned to," "continue," "forecast," "predicting,"
"projection," "potential" or similar expressions. Forward looking
statements may include references to goals, plans, strategies,
objectives, projected costs or savings, anticipated future
performance, results, events or transactions of GPC following the
proposed transaction, the anticipated benefits of the proposed
transaction, the expected timing of completion of the transaction
and other statements that are not strictly historical in nature.
These forward-looking statements are based on management's current
expectations, forecasts and assumptions. This means they involve a
number of risks and uncertainties that could cause actual results
to differ materially from those expressed or implied here,
including but not limited to: the ability of GPC to satisfy the
conditions to the closing of the transaction on a timely basis or
at all; the occurrence of events that may give rise to a right of
one or both of GPC and Audax to terminate the transaction
agreement; negative effects of the announcement or the consummation
of the transaction on the market price of GPC's common stock and/or
on its business, financial condition, results of operations and
financial performance; significant transaction costs and/or unknown
liabilities; the possibility that the anticipated benefits from the
proposed transaction cannot be realized in full or at all or may
take longer to realize than expected; or risks associated with
transaction related litigation. There can be no assurance that the
proposed transaction or any other transaction described above will
in fact be consummated in the manner described or at all.
Stockholders, potential investors and other readers are urged to
consider these risks and uncertainties in evaluating
forward-looking statements and are cautioned not to place undue
reliance on the forward-looking statements.
Forward-looking statements are only as of the date they are
made, and GPC 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 in the U.S., Canada,
Mexico, Australasia, France, the U.K., Germany, Poland, the
Netherlands and Belgium. The Company also distributes
industrial replacement parts and electrical specialty materials in
the U.S., Canada, Mexico and Australasia through its Industrial
Products Group. S.P. Richards Company, the Business Products
Group, distributes a variety of business products in the U.S. and
Canada. Genuine Parts Company had
2018 revenues of $18.7 billion.
Further information is available at www.genpt.com.
About Audax Private Equity
Audax Group is a leading alternative investment manager with
offices in Boston, New York, and San Francisco. Since its
founding in 1999, the firm has raised over $25 billion in capital across its Private Equity
and Private Debt businesses. Audax Private Equity has
invested over $5 billion in more than
125 platforms and 775 add-on companies, and is currently investing
out of its $3.5 billion, sixth
private equity fund. Through its disciplined Buy & Build
approach, Audax seeks to help platform companies execute add-on
acquisitions that fuel revenue growth, optimize operations, and
significantly increase equity value. With more than 240
employees and over 100 investment professionals, the firm is a
leading capital partner for North American middle market
companies. For more information, visit the Audax Group
website at www.audaxgroup.com.
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SOURCE Genuine Parts Company