Uni-Select Inc. (UNS.T) is selling the Canadian assets of its
Heavy Duty Group in two separate transactions, and plans to use the
proceeds to reduce debt.
Uni-Select, a Boucherville, Que. auto-parts distributor, said
it's selling the division related to replacement parts, tools and
accessories for heavy-duty vehicles to Genuine Parts Co.'s (GPC)
UAP Inc. unit.
UAP said separately that the purchase includes 18 stores in the
Palmar Truck Parts network, adding that the move will strengthen
UAP's Canadian presence especially in Quebec, Ontario and the
Atlantic provinces.
Uni-Select is selling its wheels division to Robert Thibert
Inc.
It said both transactions should generate C$22 million in cash
in the third quarter. It projects a non-recurring loss of about C$5
million on the sales.
The assets being sold generated annual sales of about C$65
million, or 5% of Uni-Select's overall sales.
Uni-Select said the Heavy Duty Group hadn't attained the desired
level of profitability. It said it intends to continue to grow
through acquisitions.
Thursday in Toronto, Uni-Select is off 0.2% to C$23.85.
-Carolyn King; 416-306-2100; AskNewswires@dowjones.com