Genuine Parts Company will acquire Alliance Automotive Group (AAG) from private equity funds managed by Blackstone and AAG’s co-founders.
The acquisition is valued at a total purchase price of approximately $2 billion, including the repayment of AAG’s outstanding debt upon closing.
The transaction has been approved by the Board of Directors of GPC and is expected to close in the fourth quarter of 2017, subject to the satisfaction of customary closing conditions and applicable regulatory approvals.
Paul Donahue, Genuine Parts Company’s president and chief executive officer, stated: “We are excited to combine with AAG and enter the European markets with critical scale and a leading market position in the automotive aftermarket.
“We are confident this business investment will create significant value for our shareholders, and we welcome the AAG team to the Genuine Parts family.
“We look forward to their future contributions to our ongoing success.”
Jean-Jacques Lafont, chairman, chief executive officer and co-founder of Alliance Automotive Group, said: “The AAG team has tremendous respect for Genuine Parts Company and its well-deserved reputation as a long-standing leader in the automotive parts industry.
“We are very pleased to combine our two great businesses and leverage our collective resources and expertise to accelerate growth.
“AAG’s success is a testament to the hard work and dedication of our wonderful employees, without whom this transaction would not be possible.”