A $2 billion deal has been made that will see Genuine Auto Parts Company acquire Alliance Automotive Group, headquartered in London, England.
AAG is a European distributor of vehicle parts, tools and workshop equipment. The deal includes the repayment of AAG’s outstanding debt upon closing.
The deal is expected to close before the end of the year. It still faces customary closing conditions and regulatory approval.
The move puts GPC in a leading position for automotive parts distribution across many European markets. AAG is the second largest parts distributor in Europe, focusing on light and commercial vehicle replacement parts. It has 7,500 employees over 1,800 company-owned stores and affiliated partners across France, Germany and the United Kingdom.
“We are excited to combine with AAG and enter the European markets with critical scale and a leading market position in the automotive aftermarket,” said Paul Donahue, Genuine Parts Company’s president and chief executive officer in a statement.
“AAG is poised to contribute significant sales growth and earnings accretion to Genuine Parts Company and also serves to enhance the GPC platform for long-term, sustainable expansion across the global automotive parts industry.”
He also touted AAG’s culture and history as being similar to GPC, which will help to make the deal a good fit for all involved.
Jean-Jacques Lafont, chairman, chief executive officer and co-founder of AAG said his company respects GPC and acknowledged its reputation in the industry.
“AAG’s success is a testament to the hard work and dedication of our wonderful employees, without whom this transaction would not be possible,” he added. “I am confident that, together, we will achieve great things and continue to provide the highest quality parts and service to our combined customers across the globe.”
The deal will be financed with about $2 billion of debt financing.