ROANOKE, Va. (Sept. 15, 2005) — Automotive aftermarket retailer Advance Auto Parts Inc. has acquired all the stock of Sharon, Mass.-based Autopart International (AI) Inc. in an all-cash transaction that closed today.
Advance, a nationwide distributor of parts, accessories, batteries and maintenance items, said AI provides replacement automotive parts to the growing do-it-for-me commercial market, as well as to warehouse distributors and jobbers. AI reported annual sales last year of approximately $90 million.
The acquisition of AI is expected to be immaterial to Advance's financial performance for this year's third and fourth quarters, Advance said.
Privately held AI's 61 auto parts stores throughout New England and New York State complement Advance's growing presence in the Northeast, the companies said in a press release. Including the 61 stores it acquired in this transaction, Advance said it expects its total new store count for 2005 to be in the range of 220 to 230 stores.
“The commercial market represents an excellent growth opportunity for Advance,” said Jim Wade, executive vice president, business development, for the Roanoke-based company. “The acquisition of AI augments Advance's share of the still highly fragmented commercial market.”
Following a thorough assessment of AI's business, Advance said it believes AI's “commercially oriented model and strong brand awareness” will benefit by remaining under the AI brand name. AI's management team will continue to be led by CEO Roger Patkin, who joined the company in 1990, and also has served on the board of the Automotive Aftermarket Industry Association.
“We are enthusiastic about joining the Advance team,” Mr. Patkin said. “AI has been very successful as a private company serving the growing commercial aftermarket and we will now have the resources as part of Advance to realize our full potential.”
Advance—serving both the do-it-yourself and professional installer markets—said it is the nation's second-largest automotive aftermarket retailer of parts, accessories and maintenance items, based on sales and store count. As of July, the company operated 2,708 stores in 40 states, Puerto Rico and the Virgin Islands.