NEW YORK (Thomson Financial) - O'Reilly Automotive Inc. Tuesday agreed to
acquire CSK Auto Corp. for a consideration worth roughly $1 billion, including
the assumption of about $500 million in debt.
The deal calls for O'Reilly to swap $11 worth of common stock and $1 in cash
for each share of CSK Auto common stock. CSK Auto shares finished Monday's
session at $9.31.
The stock portion of the consideration is subject to a collar.
O'Reilly expects the deal to add "modestly" to earnings per share in fiscal
2009. It sees annual cost savings of about $100 million, starting in fiscal
2010. The company expects to issue 16 million shares in the transaction.
Based in Springfield, Mo., O'Reilly operated 1,830 auto parts stores at the
end of 2007. It expects the combined company to have about 3,200 stores.
CSK Auto, headquartered in Phoenix, received an acquisition proposal from
O'Reilly on Feb. 1 that valued its shares at $8 each. CSK shares jumped to
$11.25 in premarket trades.
Michael Baron
mb
COPYRIGHT
Copyright Thomson Financial News Limited 2007. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|