Genuine Parts Company (GPC) has completed the sale of S.P. Richards Company, a business products wholesaler that distributes more than 98,000 products to 9,000 resellers and distributors throughout the United States from a network of 44 locations.
S.P. Richards’ core U.S. operations have been sold to an investor group. The company’s Safety Zone and Impact Products Operations has been sold to an affiliate of H.I.G. Capital.
Both transactions closed June 30.
GPC, which sells automotive replacement parts primarily under the NAPA brand name, expects to use the net cash proceeds from the transactions to enhance its cash position for capital allocation and to repay debt.
Paul Donahue, chairman and CEO of GPC said the move represents a significant step forward in expanding the company’s global footprint and strengthen its focus on sustainable, value-driving initiatives associated with faster growing and higher margin automotive and industrial businesses.
“The sale of S.P. Richards represents the further streamlining of our operations and a significant step forward in our long-term strategy to optimize our portfolio,” he said. “On behalf of the GPC board and management team, I want to thank Rick Toppin and the S.P. Richards team, whose hard work and dedication has made these transactions possible. Both the Investor Group and H.I.G. are supported by talented and experienced teams, and we are confident they are the right partners to lead these respective operations into the future. We look forward to working closely with them to support a smooth transition for our employees, customers and supply base, particularly during the ongoing challenges presented by COVID-19.”
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