Advance Auto Parts, Inc. (NYSE: AAP), a leading retailer of automotive aftermarket parts, accessories, batteries, and maintenance items, announced today that it has entered into a definitive purchase agreement to acquire B.W.P. Distributors, Inc. (BWP) in an all-cash transaction. The parties expect to close at the end of December, subject to the satisfaction of certain customary conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
BWP, a privately held company that supplies, markets and distributes automotive aftermarket parts and products principally to commercial customers, was founded in 1962 and is based in Armonk, New York. BWP currently operates or supplies 216 locations in Connecticut, Delaware, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. This acquisition will enable Advance Auto Parts to continue its expansion in the Northeast, which continues to be a strategic growth area for Advance.
After completion of this transaction, Advance will operate 124 BWP company-owned stores and will transfer the rights to distribute to 92 independently owned locations to an affiliate of General Parts International, Inc. (GPI), a privately held auto supply company. Additionally, Advance will continue to operate two of BWP’s distribution centers in Sutton, Massachusetts and Delran, New Jersey. GPI will operate BWP’s other distribution center in Armonk, New York.
“We are excited about the combination of our two businesses as it will position us for accelerated growth in the Northeast,” said Darren R. Jackson, President and Chief Executive Officer of Advance Auto Parts. “This new partnership with BWP is another example of Advance’s commitment to long-term growth and serving commercial customers. With our other investments in parts, technology, systems and people, we have enhanced our ability to improve our profitability and increase value for our shareholders. We are also thrilled that Neil Stockel, BWP President, will continue to collaborate with us as we grow our commercial business.”
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV