PHOENIX (Dec. 20, 2005) — Automotive aftermarket specialty retailer CSK Auto Corp., the parent company of CSK Auto Inc., has purchased auto parts store operator Murray's Inc. and its subsidiaries.
The transaction, for approximately $170 million cash, includes amounts needed to repay Murray's existing indebtedness, Phoenix-based CSK said. The deal is subject to certain purchase price adjustments and covers 110 Murray's automotive parts and accessories retail stores in Michigan, Illinois, Ohio and Indiana which, according to CSK, will retain the Murray's name and operating model, giving CSK a total of 1,267 stores in 22 states.
Maynard Jenkins, chairman and CEO of CSK Auto Corp., noted Murray's reputation as the “Midwest's No. 1 auto parts store,” thanks to “the tremendous efforts of its associates,” and said CSK is “thrilled” to have them join the CSK family. “With this acquisition, Murray's will complement our existing operations and expand our market presence to 22 states.”
CSK President and COO Martin Fraser said the company is looking forward to sharing ideas and strategies with Murray's and is “excited about the synergistic opportunities that are presented to us by this acquisition. Because our retail operating models are so similar, we see this acquisition as providing an extension of our footprint into new markets.”
The company also announced that it completed the issuance by CSK Auto Inc. of $85 million aggregate original principal amount of exchangeable senior unsecured notes in a private offering. Proceeds from the note offering were used to fund a portion of the Murray's buyout, with the balance of the acquisition costs funded via availability under CSK Auto Inc.'s existing senior credit facility.
Prior to the Murray's deal CSK operated approximately 1,142 stores in 19 states under the brand names Checker Auto Parts, Schuck's Auto Supply and Kragen Auto Parts. CSK-owned stores offer a selection of national brand names, private label and generic automotive parts and accessories—both new and remanufactured—for domestic and imported cars and light trucks.
Murray´s, which has its headquarters in Belleville, Mich., was founded in 1972 by Al and Murray Pitt as a single location in Detroit. The company recently opened its largest store in the Midwest, in Mundelein, Ill.
Coming in at over 12,000 square feet, the store features expanded product lines, with products ranging from truck and motorcycle accessories to automotive electronics and audio equipment. It also sells a wide variety of bicycle parts and accessories and has, according to Murray´s, a complete line of garage equipment and organizational tools. The outlet also features "Murray´s Ultimate Garage"—a fully equipped dream garage built entirely inside the store, which also has on display a fully accessorized Ford F150, Harley Davidson American Iron Horse Chopper and a tricked-out mountain bike.