GPC's Alliance Automotive Group Enters Definitive Agreement to Acquire Leading Heavy-Duty Parts Distributor in France
ATLANTA, July 17, 2019 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) announced today an acquisition for its European Automotive business.
Alliance Automotive Group (AAG), the Company's wholly-owned automotive distribution company based in London, U.K., has entered into a definitive agreement to acquire Todd Group (Todd). The transaction is expected to close in the fourth quarter of 2019 and is contingent upon satisfaction of customary closing conditions and receipt of applicable regulatory approvals.
Todd, based in Normandy, France, is a leading distributor of truck parts and accessories for the independent heavy-duty aftermarket. Through a national network of 35 branches, Todd serves its customers with parts and services for all brands of trucks, trailers, semi-trailers, buses and commercial vehicles. The Company expects the acquired business to generate annual revenues of approximately $85 million (US$).
Paul Donahue, Chairman and Chief Executive Officer of Genuine Parts Company, stated, "We are pleased to join forces with Todd and further expand our heavy-duty parts and services offering. The heavy-duty market has largely avoided the economic and other pressures in Europe and continues to grow at solid rates. Todd is an excellent organization with a rich history dating back to 1975, and we are excited to work together to grow our heavy-duty business in France."
Jean-Jacques Lafont, Chief Executive Officer of Alliance Automotive Group added, "The addition of Todd complements the AAG network and builds on our industry leading position as the largest distributor to the independent heavy-duty aftermarket in France. We look forward to closing this transaction and welcoming the Todd team to AAG."
Forward Looking Statements
Some statements in this press release, as well as in other materials we file with the Securities and Exchange Commission ("SEC") or otherwise release to the public and in materials that we make available on our website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. Forward-looking statements may relate, for example, to the anticipated strategic benefits, synergies and other attributes resulting from this and other acquisitions, as well as future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions and demand for our products and services. The Company cautions that its forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, the Company's ability to successfully integrate Todd Group and prior acquisitions into the Company and to realize the anticipated synergies and benefits; changes in the automotive aftermarket or changes in the industrial or business products markets; the Company's ability to successfully implement its business initiatives in each of its three business segments; slowing demand for the Company's products; changes in national and international legislation or government regulations or policies, including new import tariffs and data security policies and requirements; changes in general economic conditions, including unemployment, inflation (including the impact of potential tariffs) or deflation and the United Kingdom's referendum to exit from the European Union, commonly known as Brexit; changes in tax policies; volatile exchange rates; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; labor shortages; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; the ability to maintain favorable vendor arrangements and relationships; disruptions in our vendors' operations, including the impact of tariffs and trade considerations on their operations and output, as required to meet product demand; failure or weakness in our disclosure controls and procedures and internal controls over financial reporting; the uncertainties and costs of litigation; disruptions caused by a failure or breach of the Company's information systems, as well as other risks and uncertainties discussed in the Company's Annual Report on Form 10-K for 2018 and from time to time in the Company's subsequent filings with the SEC.
Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other reports to the SEC.
About Genuine Parts Company
Genuine Parts Company is a distributor of automotive replacement parts in the U.S., Canada, Mexico, Australasia, France, the U.K., Germany, Poland, the Netherlands and Belgium. The Company also distributes industrial replacement parts and electrical specialty materials in the U.S., Canada and Mexico through its Industrial Products Group. S.P. Richards Company, the Business Products Group, distributes a variety of business products in the U.S. and Canada. Genuine Parts Company had 2018 revenues of $18.7 billion. Further information is available at www.genpt.com.
About Alliance Automotive Group
Alliance Automotive Group is a leading distributor of light and commercial vehicle parts to the independent aftermarket in France, Germany, the U.K., Poland, the Netherlands and Belgium doing business under the Groupauto France, Précisium, Partners and Gef'Auto brands in France, Groupauto UK, UAN and FPS in the UK, Alliance Automotive Group Germany in Germany, Groupauto Poland in Poland and Brezan, Staadegaard-TC and Dabeko in the Netherlands and Belgium. AAG serves approximately 40,000 garages with over 100,000 different parts for repair and maintenance from a network of more than 300 company-owned stores and approximately 1,800 affiliated outlets. Further information is available at www.allianceautomotivegroup.eu.
SOURCE Genuine Parts Company
For further information: Carol B. Yancey, Executive Vice President and CFO - (678) 934-5044; Sidney G. Jones, Senior Vice President - Investor Relations - (678) 934-5628