BP BP Plc

Fiat Chrysler

Company to Build

Distribution Center

Fiat Chrysler Automobiles NV is investing $12.2 million to build a new distribution center in Virginia amid growing demand for parts used by its dealerships to both repair and customize its vehicles.

The 400,000-square-foot Mopar distribution center, located in Winchester, will employ about 70 people and ship more than 9.2 million parts and other items annually. This will be the 22nd center Fiat Chrysler has in operation in North America.

It will primarily supply more than 200 dealers in the mid-Atlantic region after it opens sometime in the fourth quarter.

Mopar is the hidden gem of the Fiat Chrysler operation. Currently, the unit distributes more than 500,000 different parts and accessories to more than 150 markets around the world. That number is only expected to continue to grow since the auto maker typically introduces dozens of customization parts with every new vehicle it launches.

Those parts range from a $350 Jeep-branded full vehicle cover and a $225 front grille for the Dodge Charger to a $155 bicycle carrier for the Pacifica minivan and a $347 bed liner for the Ram pickup truck. The unit also supplies wallets, golf shirts and key cases. Fiat Chrysler executives have said that almost every Jeep and pickup truck it sells in the U.S. is customized in some way by customers.

Customization has grown across the industry as low leasing rates have given customers the ability to not only purchase bigger cars but also buy a few extras they may have skipped in the past.

Auto makers and retailers have also become more savvy by offering higher quality parts and graphics packages to entice shoppers to buy.

A Fiat Chrysler spokesman declined to provide financial details since the auto maker doesn't separately report the unit's revenues.

--Jeff Bennett

Sovran

REIT to Acquire

Self-Storage Firm

Self-storage real-estate investment trust Sovran Self Storage Inc. on Thursday said it agreed to acquire privately owned self-storage operator LifeStorage LP for about $1.3 billion in cash and began a public offering of six million shares in part to fund the deal.

Sovran, whose facilities operate under the name "Uncle Bob's Self Storage," said Roseville, Calif.-based LifeStorage is the sixth-largest private self storage facility operator in the U.S., with 92 self storage properties in nine states.

In the deal, which is expected to close in the third quarter, Sovran will take 84 LifeStorage stores with a purchase contract for three additional certificates-of-occupancy deals for late 2016 and early 2017.

Sovran Chief Executive David Rogers said the acquisition will "enhance and complement our physical footprint and digital presence."

The deal adds to Buffalo, N.Y.-based Sovran's existing markets, including Chicago, Austin, Dallas, Orlando and Los Angeles, while also expanding its presence to new markets in Northern California and Las Vegas.

As part of the public offering, Sovran granted underwriters a 30-day option to purchase up to 900,000 additional shares.

In January Sovran said it had agreed to buy 30 storage facilities for $398 million and unveiled a plan to sell 2.3 million in shares to fund deals. Those acquisitions gave the company its foothold in the Los Angeles metro area.

Sovran shares, inactive premarket, have added 4.5% over the past three months to $111.35.

--Anne Steele

BP

Unit Sells Stake

In Castrol India

Oil giant BP PLC said Thursday its subsidiary Castrol Ltd. has sold an 11.5% stake in Castrol India Ltd. to domestic and international investors for an undisclosed sum.

Following the sale, Castrol will own 59.5% of Castrol India, BP said, adding that it plans to continue as a majority shareholder of the company.

Castrol India delivered a post-tax profit of around $95 million in 2015, 30% up on the previous year. For the first quarter of 2016 post-tax profit was $26.5 million.

--Ian Walker

Zhejiang Expressway

Revenue, Asset Gain

Boost Net Profit

Zhejiang Expressway Co. said Wednesday its first-quarter net profit rose 4.7% from a year earlier, thanks to higher revenue and an increase in the fair value gains of its financial assets.

The Hong Kong-listed infrastructure company said its net profit for the three months ended March 31 rose to 661.8 million yuan (US$101.2 million) from 631.9 million yuan a year earlier, while its revenue rose to 2.69 billion yuan from 2.59 billion yuan a year earlier.

--Chester Yung

James Hardie

Buyback Planned

After Profit Falls

Dublin-based building products manufacturer James Hardie plans to buy back US$100 million of its own shares and expects the U.S. housing market to grow at a moderate pace this year after reporting a 16% profit fall Thursday.

Net profit for the year through March fell to US$244.4 million from US$291.3 million a year earlier as higher interest and tax expenses weighed on the bottom line.

Sales edged up by 4% to US$1.73 billion as volumes increased in North America and Europe.

James Hardie, which is one of the biggest makers of home siding in the U.S. and generates most of its profits there, said it expects to see moderate growth in the U.S. housing market in fiscal 2017.

--Rebecca Thurlow

(END) Dow Jones Newswires

May 19, 2016 13:26 ET (17:26 GMT)

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