Advance Auto Parts announced it is beginning the process of looking into spinning off its Worldpac division and its Canadian business under the Carquest banner.
The announcement came as the company has decided to focus on a “blended box business model” as it also looks into a new cost reduction program. In its third-quarter financial report, it said the move the company could see at least $150 million in savings annually through the plan.
Shane O’Kelly, who took the reins as president and CEO from Tom Greco two months ago, said he’s been working with the board and management in reviewing the business.
Advance has started a sale process that could lead to the company parting with Worldpac and Carquest, under which Advance’s goes to market in Canada.
Centreview Partners is working with Advance on the sale process. No timetable was given nor was a deadline for any potential sale. Advance also doesn’t intend to comment or give any updates on the possible sale unless they reach a conclusion or further updates are warranted.