ATLANTA, July 17, 2015 /PRNewswire/ -- Genuine Parts
Company (NYSE: GPC) announced today an acquisition for its
Automotive Parts Group.
GPC Asia Pacific, the Company's wholly-owned automotive
distribution company based in Melbourne,
Australia, has entered into a definitive agreement to
acquire Covs Parts Pty Ltd ("Covs Parts") from its parent company,
Automotive Holdings Group ("AHG"). AHG is a publicly
listed automotive retailing and logistics group with operations
across Australasia. Consummation of the transaction is
expected by October 1, 2015, and is
contingent upon satisfaction of customary closing conditions and
receipt of applicable regulatory approvals.
Covs Parts, headquartered in Welshpool, Western Australia, is a leading distributor
across the state of Western
Australia, focused on original equipment and aftermarket
automotive parts, mining and industrial consumables and truck
products. Covs Parts was established in 1929 and serves it
broad and diverse customer base from a 25 branch distribution
network. The Company expects the acquired business to
generate annual revenues of approximately $90 million (US$).
Tom Gallagher, Chairman and Chief
Executive Officer of Genuine Parts Company, stated, "Covs Parts was
a very attractive business opportunity for us in the Australasian
market. The addition of this business serves to further
expand our presence and scale in Western
Australia and also builds on our commercial growth
strategy. We are pleased to welcome the Covs Parts team into
the Asia Pacific and GPC family
and expect the combination of our organizations to be a great fit,
both financially and strategically. We look forward to the
many contributions the Covs Parts team will make in the years
ahead."
Forward Looking Statements
Some statements in this report, as well as in other materials we
file with the Securities and Exchange Commission (SEC) or
otherwise release to the public and in materials that we make
available on our website, constitute forward-looking statements
that are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Senior officers may
also make verbal statements to analysts, investors, the media and
others that are forward-looking. Forward-looking statements
may relate, for example, to future operations, prospects,
strategies, financial condition, economic performance (including
growth and earnings), industry conditions and demand for our
products and services. The Company cautions that its
forward-looking statements involve risks and uncertainties, and
while we believe that our expectations for the future are
reasonable in view of currently available information, you are
cautioned not to place undue reliance on our forward-looking
statements. Actual results or events may differ materially
from those indicated as a result of various important
factors. Such factors may include, among other things,
slowing demand for the Company's products, changes in general
economic conditions, including, unemployment, inflation or
deflation, high energy costs, uncertain credit markets and other
macro-economic conditions, the ability to maintain favorable vendor
arrangements and relationships, disruptions in our vendors'
operations, competitive product, service and pricing pressures, the
Company's ability to successfully implement its business
initiatives in each of its four business segments, the Company's
ability to successfully integrate its acquired businesses, the
uncertainties and costs of litigation, as well as other risks and
uncertainties discussed in the Company's Annual Report on Form 10-K
for 2014 and from time to time in the Company's subsequent filings
with the SEC.
Forward-looking statements are only as of the date they are
made, and the Company undertakes no duty to update its
forward-looking statements except as required by law. You are
advised, however, to review any further disclosures we make on
related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other
reports to the SEC.
About Genuine Parts Company
Genuine Parts Company is a distributor of automotive replacement
parts and accessories in the U.S., Canada, Mexico and Australasia. The Company also
distributes industrial replacement parts in the U.S., Canada and Mexico through its Motion Industries
subsidiary. S. P. Richards Company, the Office Products
Group, distributes business products in the U.S. and in
Canada. The Electrical/Electronic Group, EIS, Inc.,
distributes electrical and electronic components throughout the
U.S., Canada and Mexico. Genuine Parts Company had 2014
revenues of $15.3 billion.
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SOURCE Genuine Parts Company