Advance Auto Parts hires Blackstone Advisory to explore sale
02 Nov 2012
Advance Auto Parts Inc is exploring a potential sale to private equity firms, in a deal that may value the second-largest automotive replacement parts retailer in the US over $6 billion, Reuters reported yesterday citing two people familiar with the matter.
The Virginia-based auto parts retailer had hired investment bank Blackstone Advisory to explore a potential sale and has attracted initial interest from several private equity firms.
Shares of Advance Auto Parts yesterday soared 14.2 per cent to $81 a share after CNBC broke the story early on Thursday.
Founded in 1932 by Arthur Taubman by opening two stores in Virginia, Advance Auto Parts has grown since 1998 through aggressive acquisitions.
It now has over 3,500 stores across the US, more than 51,000 employees, an annual turnover of $5.4 billion, and market capitalisation of a little over $5.8 billion. It had debt of about $600 million as of 14 July 2012.
Its competitors include Autozone, O'Reilly Automotive and Pep Boys.
Philadelphia-based Pep Boys was to be acquired Gores Group for $791 million in January, (See: PE firm Gores Group to acquire US auto parts chain Pep Boys for $791 mn) but the private equity firm backed out in May after seeing a surge in new car sales in the US.
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