Exego Business to Provide Accretive Automotive Expansion
Atlanta, GA - Genuine Parts Company announced that it has entered into a definitive agreement to acquire the remaining 70% stake of Exego Group, headquartered in Melbourne, Australia, for a total purchase price of approximately $800 million (US$), including the assumption of certain debt.
The company had previously purchased a 30% stake in the Exego Group on January 1, 2012, and held the option to acquire the remaining shares of the Exego Group at a later date, subject to Exego meeting certain earnings thresholds. The company expects to finance the balance of the purchase using a combination of cash and borrowings. Subject to the satisfaction of customary closing conditions and applicable regulatory approvals, the acquisition is expected to close on April 1, 2013.
Exego Group, established in 1922, is a leading aftermarket distributor of automotive replacement parts and accessories in Australasia, with annual revenues of more than $1 billion (US$) and a company-owned store footprint of more than 430 locations across Australia and New Zealand.
Tom Gallagher, Chairman and Chief Executive Officer of Genuine Parts Company, stated, "We are very pleased to enter the final phase of our Exego Group acquisition. The Exego team exceeded our expectations for meeting the growth and earnings thresholds outlined in our original agreement, thus, we were presented with the opportunity to move forward with our investment earlier than expected. Based on our positive experience over the last 14 months with Exego, we believe that 100% ownership of their company best positions us to participate in the ongoing and significant growth opportunities in the Australasian aftermarket. Exego Group, with its growth potential, leading market position and a long and successful 90 year history, is an accretive business investment that will benefit our shareholders in 2013 and over the long-term."
The Exego Group Managing Director, John Moller, said, "As we complete the sale of our company, we are excited to join the Genuine Parts and NAPA family and further build on our well established relationship. Our business philosophies and focus on providing value to our customers while growing the business have aligned very well and served to enhance our operating performance and financial results. We couldn't be more pleased by the tremendous commitment of GPC to support our growth and market leadership position in the Australasian aftermarket."
