Advance Auto Parts to Sell Worldpac to Carlyle for $1.5 Billion
Deal is expected to close before the end of the year
Advance Auto Parts AAP 1.83%increase; green up pointing triangle has agreed to sell its Worldpac subsidiary to Carlyle CG -0.72%decrease; red down pointing triangle Group for $1.5 billion in cash.
The aftermarket car-parts retailer said Thursday that the deal for its automotive parts wholesale distribution business is expected to close before the end of the year and generate proceeds of about $1.2 billion after taxes and transaction fees.
The company said last fall that it has initiated a sales process for Worldpac as well as its Canadian business, aiming to become a more simplified and profitable business.
“The sale enables our team to sharpen their focus on decisive actions to turn around the Advance blended box business,” Chief Executive Shane O’Kelly said Thursday.
Proceeds from the deal provide Advance Auto with greater flexibility as it continues a strategic review to improve productivity of the company’s remaining assets, O’Kelly said.
Members of the Carlyle investing team said Worldpac was a great business that operates in attractive markets.
In the 12 months that ended at the close of the second quarter, Worldpac generated about $2.1 billion in revenue and about $100 million in earnings before interest, taxes, depreciation and amortization.