Advance Auto Parts (AAP.US), a US auto parts chain, has sold its Worldpac business to KKR (CG.US) for $15bn
Advance Auto Parts(AAP.US), a leading US auto parts chain, announced on Thursday that it had reached a final agreement to sell its Worldpac business to a fund managed by private equity giant KKR(CG.US) for $1.5 billion. The deal is expected to close before the end of this year.
The sale will allow the company’s management team to focus more on taking decisive action to turn around Advance’s blended box business, said Shane O’Kelly, the company’s chief executive.
Under the deal, Worldpac, Advance’s automotive aftermarket distribution business, is expected to generate net proceeds of about $1.2 billion, after tax and transaction fees. The proceeds from the deal are expected to provide the company with greater financial flexibility as it continues to assess its strategic and operational position to improve the productivity of its remaining assets and position the company for future growth and value creation.
Data shows that the Worldpac business generated about $2.1 billion in revenue and about $100m in Ebitda over the past 12 months ending in the second quarter.