Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Genuine Parts to buy European peer in $2 billion deal

Published 25/09/2017, 12:47
Genuine Parts to buy European peer in $2 billion deal
GPC
-
BX
-

(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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.