ATLANTA, Jan. 7, 2020 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) announced today that it has completed the sale of its wholly-owned subsidiary S.P. Richards Co. Canada Inc. (S.P. Richards Canada) to Novexco Inc. (Novexco), effective January 1, 2020.
S.P. Richards Canada represents the Company's Business Products Group in Canada. S.P. Richards Canada is a full-line, nationwide wholesaler of office supplies, furniture, technology products and facility and breakroom supplies, servicing office products resellers across the country from locations in Vancouver, Toronto, Calgary and Edmonton. In 2019, S.P. Richards Canada's approximate annual revenues were $50 million. The Company intends to use the cash proceeds from the transaction in line with its disciplined capital allocation strategy.
Paul Donahue, Chairman and Chief Executive Officer of GPC, stated, "We are very pleased to complete the sale of S.P. Richards Canada and take another step forward in our strategy to optimize our portfolio. Novexco is a leader in the industry and an excellent partner for our Canadian customers and our employees. We want to thank the entire S.P. Richards team, and in particular our team in Canada, for making this transaction possible."
Denis Mathieu, President and Chief Executive Officer of Novexco, added, "This acquisition is complementary to our current distribution channel. S.P. Richards Canada's warehouses in Western Canada will help us serve our customers in the West, whereas our existing warehouses in Eastern Canada will help reduce the delivery time to S.P. Richards Canada's customers in the East. We are pleased to expand our presence in Canada and offer an array of products and a robust coast-to-coast distribution service."
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 in the U.S., Canada, Mexico and Australasia through its Industrial Parts 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.
Novexco, founded in 1996 and owned by its merchant members, is the largest Canadian owned distributor of office supplies, technology products and furniture. Since March 2018, its commercial activities, the national sales division, the transactional website and the 109 Eastern-Canadian stores, have been grouped under the trademark Hamster. The company also serves Canadian wholesalers under the Chestwood division. Novexco supplies Canadian consumers and businesses from its distribution centers in Vancouver BC, Calgary AB, Edmonton AB, Markham ON, Brampton ON, Toronto ON, Laval QC, Montreal QC and Dartmouth NS. Novexco is part of the Platinum Club of the Best Managed Companies in Canada. For more information, visit the Novexco website at www.novexco.com.
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. This press release contains forward-looking statements, including statements regarding the completed business transaction between Novexco and GPC in which GPC sold S.P. Richards Canada to Novexco. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements often contain words such as "expects," "anticipates," "estimates," "intends," "plans," "believes," "seeks," "will," "is likely to," "scheduled," "positioned to," "continue," "forecast," "predicting," "projection," "potential" or similar expressions. Forward looking statements may include references to goals, plans, strategies, objectives, projected costs or savings, anticipated future performance, results, anticipated benefits of the completed transaction, and other statements that are not strictly historical in nature. These forward-looking statements are based on management's current expectations, forecasts and assumptions. This means they involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied here, including but not limited to: negative effects of the consummation of the transaction on the market price of GPC's common stock and/or on its business, financial condition, results of operations and financial performance; significant transaction costs and/or unknown liabilities; the possibility that the anticipated benefits from the proposed transaction cannot be realized in full or at all or may take longer to realize than expected; or risks associated with transaction related litigation. Stockholders, potential investors and other readers are urged to consider these risks and uncertainties in evaluating forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements.
Forward-looking statements are only as of the date they are made, and GPC 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.
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