(Reuters) - Genuine Parts Co (N:GPC), a U.S.-based automotive replacement parts distributor, said on Monday it would buy European peer Alliance Automotive Group in a deal valued at about $2 billion (1.48 billion pounds), including debt.
The deal will provide Genuine Parts entry into the European market, where Alliance Automotive is the second largest parts distributor, the company said.
Alliance Automotive distributes parts for light and commercial vehicle in France, Germany and the UK. It has 7,500 employees and over 1,800 company-owned stores and affiliated outlets in Europe.
The London-based company is expected to generate gross revenue of about $1.7 billion in 2017, said Genuine Parts, which itself is expected to earn about $15.95 billion in 2017 revenue, according to Thomson Reuters I/B/E/S.
Genuine Parts is also present in the Canadian, Mexican and Australasian markets, but gets more than 80 percent of its annual revenue from the United States.
Genuine Parts will buy Alliance Automotive from its co-founders and private equity funds managed by Blackstone (N:BX).
The deal, expected to close in the fourth quarter of 2017, will add 65-70 cents per share to Genuine Parts' adjusted earnings in 2018.
J.P. Morgan advised Genuine Parts on the deal, while Lazard and UBS advised Alliance Automotive.