Advance Auto Parts to sell Worldpac to Carlyle for $1.5bn

22nd Aug 2024 12:41

(Sharecast News) - Advance Auto Parts said on Thursday that it has agreed to sell Worldpac, its automotive parts wholesale distribution business, to private equity firm Carlyle for $1.5bn in cash.

Over the last twelve months, at the end of the second quarter, the Worldpac business generated about $2.1bn in revenue and $100m in EBITDA.

President and chief executive Shane O'Kelly said: "The sale enables our team to sharpen their focus on decisive actions to turn around the Advance blended box business. Proceeds from the transaction will provide greater financial flexibility as we continue our strategic and operational review to improve the productivity of the company's remaining assets and better position the company for future growth and value creation."

The deal is expected to close before the end of the year.

Wes Bieligk, a partner, and Katherine Barasch, a senior member of Carlyle's Global Industrials investing team, said: "We are excited to partner with Worldpac, a great business operating in attractive markets.

"Our proven track record in executing complex carve-outs position us uniquely to support Worldpac and its team as an independent company.

"Carlyle's investment in Worldpac builds on the firm's extensive carve-out experience in the Industrials sector, having invested circa $13 billion in industrial carve-outs over the past two decades, including in such companies as Axalta, Nouryon, Atotech, Signode, and Allison Transmission."

Advance Auto Parts is a an automotive aftermarket parts provider that serves both professional installers and do-it-yourself customers. As of July 13, 2024, it operated 4,776 stores and 321 Worldpac branches primarily within the US, with additional locations in Canada, Puerto Rico and the US Virgin Islands.

News of the sale came alongside the company's second-quarter results.