- President George Sherman Named
Interim CEO Effective January 3, 2016
- Darren Jackson to Retire as CEO
After Eight Years
- Chairman Jack Brouillard Named
Executive Chairman
- John Ferraro Named Lead Independent
Director
Advance Auto Parts, Inc. (NYSE:AAP), a leading automotive
aftermarket parts provider in North America, serving both
professional installers and do-it-yourself customers, today
announced that its Board of Directors has appointed President
George Sherman to the additional role of interim Chief Executive
Officer, effective January 3, 2016, the beginning of the Company’s
next fiscal year. Mr. Sherman will succeed Darren Jackson who will
retire as CEO and step down from the Board on January 2, 2016,
after more than 11 years with the Company, including the last eight
years as CEO.
The Company also announced that effective immediately current
Board Chairman John C. (“Jack”) Brouillard will become Executive
Chairman. In this role, Mr. Brouillard will continue to provide
Board leadership and work closely in an advisory capacity with Mr.
Sherman as the Company continues to implement its long-term
strategy. The Board also named Board Member John Ferraro to take on
the role of Lead Independent Director.
Mr. Brouillard said, “Since joining Advance Auto Parts nearly
three years ago, George Sherman has demonstrated a range of
important skills through his efforts to expand our Commercial
business, improve operations and oversee the integration of General
Parts. We are confident that George’s understanding of our
business, strong customer relationships, and proven leadership
abilities position him well to lead the Company through this
transition period. As part of our search process, the Board will
consider external candidates as well as George for the role of
permanent CEO.”
Mr. Brouillard continued, “On behalf of the Board, I want to
thank Darren Jackson for his extraordinary service to Advance Auto
Parts. During his eight years as CEO, Advance has doubled in size
while growing its market value over $10 billion and increasing its
share price from $33 to $195. Darren’s leadership and commitment to
excellence have transformed Advance into an industry leader that is
well positioned strategically, operationally, and financially to
capitalize on the opportunities that lie ahead.”
Mr. Sherman said, “I am honored to have the opportunity to lead
Advance Auto Parts during this interim period. With increased scale
and reach, including loyal do-it-yourself customers and an
expanding presence in the fast-growing commercial segment, we are
well positioned to drive growth and achieve our margin targets. I
look forward to continuing to work closely with our talented
executives and the thousands of hard-working Advance team members
as we build value for our shareholders, customers and team.”
Mr. Jackson said, “It has been a privilege to lead this great
Company. Advance Auto Parts is well positioned to build upon its
position as a leading automotive aftermarket parts provider, and I
am confident George will successfully guide Advance during this
interim period in continuing to implement its strategic plan.”
George Sherman Biography
Mr. Sherman joined Advance Auto Parts as President in April
2013, and has been responsible for growing the business and driving
excellence throughout the Company’s operations. Mr. Sherman has led
the Company’s Commercial Sales, Field Operations, Merchandising,
Marketing, Supply Chain and IT Teams. Prior to joining Advance Auto
Parts, Mr. Sherman served as Senior Vice President, Best Buy
Services, for Best Buy Co. Previously, Mr. Sherman led Home Depot’s
installation business as Senior Vice President and President of the
Home Services Division, as well as serving as Senior Vice
President, Operations. Prior to Home Depot, Mr. Sherman spent 15
years at Target Corp., where he progressed from Store Manager to
Regional Vice President to Senior Vice President. Previously, he
served as an officer in the United States Air Force for seven
years.
Jack Brouillard Biography
Mr. Brouillard joined the Advance Auto Parts Board in 2004 and
was appointed Chair in January 2008 after serving as interim Chief
Executive Officer from May 2007 until January 2008. Mr. Brouillard
retired as Chief Administrative and Financial Officer of H.E. Butt
Grocery Company in June 2005, a position that he had held since
1991. From 1977 to 1991, he held various positions with Hills
Department Stores, including serving as President.
John Ferraro Biography
John Ferraro joined the Advance Auto Parts Board in 2015. Mr.
Ferraro was Global Chief Operating Officer of Ernst & Young
(EY) from 2007 to December 2014. He joined EY in 1976 and was a
partner for 26 years until his retirement in February 2015, holding
various positions of senior responsibility including Global Vice
Chair Audit and was a member of EY’s Global Executive board for
more than 10 years.
About Advance Auto Parts
Headquartered in Roanoke, Va., Advance Auto Parts, Inc., the
largest automotive aftermarket parts provider in North America,
serves both professional installer and do-it-yourself customers. As
of October 10, 2015 Advance operated 5,240 stores and 118 Worldpac
branches and served approximately 1,300 independently owned
Carquest branded stores in the United States, Puerto Rico, the U.S.
Virgin Islands and Canada. Advance employs approximately 75,000
Team Members. Additional information about the Company, employment
opportunities, customer services, and on-line shopping for parts,
accessories and other offerings can be found on the Company's
website at www.AdvanceAutoParts.com.
Forward Looking Statements
Certain statements contained in this release are forward-looking
statements, as that term is used in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements address
future events or developments, and typically use words such as
believe, anticipate, expect, intend, plan, forecast, outlook or
estimate. These forward looking statements include, but are not
limited to, expectations regarding leadership changes and their
impact on the company’s strategies, opportunities and results;
statements regarding growth in shareholder value; statements
regarding strategic plans or initiatives, growth or profitability;
guidance for 2015 financial performance; statements regarding the
benefits and other effects of the acquisition of General Parts
International, Inc. (General Parts) and the combined company’s
plans, objectives and expectations; statements regarding expected
growth and future performance of Advance Auto Parts, Inc. (AAP),
including store growth, capital expenditures, comparable store
sales, gross profit rate, SG&A, operating income, free cash
flow, income tax rate, General Parts integration costs and store
consolidation costs, synergies, expenses to achieve synergies,
comparable cash earnings per diluted share for fiscal year 2015 and
comparable operating income rate targets; and all other statements
that are not statements of historical facts. These forward-looking
statements are subject to significant risks, uncertainties and
assumptions, and actual future events or results may differ
materially from such forward-looking statements. Such differences
may result from, among other things, the risk that AAP may
experience difficulty in successfully implementing the announced
leadership changes; the ability of the persons appointed to lead
and provide results in their new roles; potential disruption to
AAP’s business resulting from the announced leadership changes; the
impact of the announced leadership changes on AAP’s relationships
with customers, suppliers and other business partners; AAP’s
ability to attract, develop and retain executives and other
employees; the risk that the benefits of the General Parts
acquisition, including synergies, may not be fully realized or may
take longer to realize than expected; the possibility that the
General Parts acquisition may not advance AAP’s business strategy;
the risk that AAP may experience difficulty integrating General
Parts’ employees, business systems and technology; the potential
diversion of AAP’s management’s attention from AAP’s other
businesses resulting from the General Parts acquisition; the impact
of the General Parts acquisition on third-party relationships,
including customers, wholesalers, independently owned and jobber
stores and suppliers; changes in regulatory, social and political
conditions, as well as general economic conditions; competitive
pressures; demand for AAP’s and General Parts' products; the market
for auto parts; the economy in general; inflation; consumer debt
levels; the weather; business interruptions; information technology
security; availability of suitable real estate; dependence on
foreign suppliers; and other factors disclosed in AAP’s 10-K for
the fiscal year ended January 3, 2015 and other filings made by AAP
with the Securities and Exchange Commission. Readers are cautioned
not to place undue reliance on these forward-looking statements.
AAP intends these forward-looking statements to speak only as of
the time of this communication and does not undertake to update or
revise them as more information becomes available.
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version on businesswire.com: http://www.businesswire.com/news/home/20151112005480/en/
Advance Auto Parts, Inc.Media:Laurie Stacy,
540-561-8452laurie.stacy@advanceautoparts.comorInvestors:Zaheed
Mawani, 919-573-3848zaheed.mawani@advanceautoparts.com
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