Genuine Parts Co. (NYSE: GPC), a distributor of replacement car parts, is set to buy Covs Parts Pty Ltd. Terms of the deal remain undisclosed, but APG is expected to generate annual revenues of roughly $90 million each year.
Genuine Parts is known for distributing automotive replacement parts and accessory items throughout North America, Australia and New Zealand. In North America, parts are sold primarily under the National Automotive Parts Association (NAPA) brand name.
The Atlanta-based buyer facilitated the deal through GPC Asia Pacific, a subsidiary based in Melbourne, Australia. The transaction includes all of the assets of Covs Parts, a Welshpool, Western Australia-based unit of parent company and logistics provider Automotive Holdings Group.
The deal is expected to close by October 2015.
Covs Parts, which focuses on truck products and mining equipment, was established in 1929. According to Genuine Parts chief executive Tom Gallagher, the deal will further expand the company's commercial growth strategy and presence in Western Australia.
The purchase comes as auto care suppliers continue to be attractive M&A targets. Recent automotive aftermarket deals include United Stationers’ (Nasdaq: USTR) acquisition of Medco, Delphi Automotive's (NYSE: DLPH) purchase of Unwired Technology and Trim Parts’ purchase of Mr. Mustang Inc. For more, see “Winners of the Auto Aftermarket.”
There have been several other automotive-related deals recently, including the Watermill Group's acquisition of Quality Metalcraft Inc. earlier in July, and Highlander Partners LP's deal for Valvoline's car-care assets from Ashland Inc. (NYSE: ASH).