Results 1 to 17 of 17

Thread: Advance Auto Parts Buys Carquest

  1. #1
    Golden Hawk Member DEEPNHOCK's Avatar
    Join Date
    Oct 2004
    Location
    Brooklet, GA, USA. Planet Earth
    Posts
    15,068

    Advance Auto Parts Buys Carquest

    http://www.bloomberg.com/news/2013-1...lion-deal.html

    (snippet copy - see link for entire article)

    Advance Auto to Buy General Parts for Top America Ranking

    By Tom Lavell - Oct 16, 2013 7:12 AM CT

    Advance Auto Parts Inc. (AAP) agreed to buy closely held General Parts International Inc., adding the Carquest chain and entering Canada to become the biggest retailer of car components in North America.

    The all-cash acquisition, with an enterprise value of $2.04 billion, will result in annual savings and revenue improvements of $160 million within three years after completion, Roanoke, Virginia-based Advance Auto Parts said today in a statement. The companies plan to close the deal by early 2014, it said.

    The takeover, which was agreed to by both companies’ boards, “creates the largest automotive aftermarket parts provider in North America, with combined sales of over $9.2 billion,” Advance Auto said. That will include becoming the top-ranked business-to-business spare-parts online sales platform in the region, it said.
    Advance Auto hired Blackstone Group LP (BX) about a year ago to evaluate strategic options, a person with knowledge of the matter said at the time. The retailer bought Armonk, New York-based BWP Distributors Inc. in December, without disclosing a price, to add sites in New England and in the Mid-Atlantic area of the U.S.
    Blackstone and JPMorgan Chase & Co. (JPM) were financial advisers to Advance Auto on the General Parts agreement, and Kirkland & Ellis were legal advisers, the retailer said today. Advisers to Raleigh, North Carolina-based General Parts were Wells Fargo & Co. (WFC) and the Orr Group for the financial terms and Manning Fulton & Skinner PA and Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan for the legal portion.
    The purchase will include General Parts’ Worldpac import and distribution network in addition to Carquest, which has 1,246 company-operated stores and 1,418 independently owned outlets, the company said.
    To contact the reporter on this story: Tom Lavell in Frankfurt at tlavell@bloomberg.net
    To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net

    Jeff



    Note: SDC# 070190 (and earlier...)

  2. #2
    Golden Hawk Member rockne10's Avatar
    Join Date
    May 2005
    Location
    Pine Grove Mills, Pa, USA.
    Posts
    10,238
    Friend of mine owns three Carquest independent outlets. I suspect he won't see major changes. Customers are primarily the professional auto shops and they are a loyal breed. On the other hand, company owned stores in markets that may not support brotherly competition could be in for a shakeup.

  3. #3
    President Member
    Join Date
    Mar 2007
    Location
    Basically Omaha Nebraska
    Posts
    2,191
    I wonder how this will affect the carquest stores. Generally, when I need knowledgeable people I go to our local carquest. When I need a cheap part sold by a 16 year old who's only ever opened a hood to replace a battery, I go to advance. This will either raise the bar at Advance retail stores or hurt the carquest brand.
    '63 Lark Custom, 259 v8, auto, toddler seat

    Visit my Studebaker-specific Blog - YouStude
    My "other" blog (Stude and non-Stude stuff) - Renaissance Jim

    "Your friendly neighborhood Studebaker evangelist"

  4. #4
    President Member PlainBrownR2's Avatar
    Join Date
    Feb 2007
    Location
    Aurora, Illinois, USA.
    Posts
    3,957
    Old enough to remember when they were in competition with Trak Auto, Super Trak, and NAPA around here. I think there's one left here, and they're old enough to have, or had a machine shop behind their place....and this was all before O'Reilly's, Autozone, Advanced Auto, and Pepboys!
    1964 Studebaker Commander R2 clone
    1963 Studebaker Daytona Hardtop with no engine or transmission
    1950 Studebaker 2R5 w/170 six cylinder and 3spd OD
    1955 Studebaker Commander Hardtop w/289 and 3spd OD and Megasquirt port fuel injection(among other things)

  5. #5
    President Member
    Join Date
    Sep 2007
    Location
    Hillsboro, Ohio, USA.
    Posts
    999
    Our carquest closed up about 8 months ago. WE still have Napa, Oreilly, parts Plus ,Advance and Autozone. The CARQUEST had a sign on door that that they moved. The move was about 40 miles away! It did have a machine shop and was previously a parts plus store . I had worked for the owner of the Parts Plus store for 19 years ( left in 1993 ). That owner sold out and the store went thru a lot of hands before closing.

  6. #6
    President Member 62champ's Avatar
    Join Date
    Dec 2004
    Location
    North Central Kentucky
    Posts
    1,689
    There were a four semi-trailers outside the local Carquest last week. Went in yesterday and they have all the shelves and displays moved around, Advance price makers on products. Looked at the price of Seafoam and it was $2 more than the old CQ price. Always liked the CQ oil filters because they were sourced from Wix...progress, right?

  7. #7
    Golden Hawk Member DEEPNHOCK's Avatar
    Join Date
    Oct 2004
    Location
    Brooklet, GA, USA. Planet Earth
    Posts
    15,068
    Opinions vary.
    Carquest has always been more 'traditional' as far as selling automotive parts to the local repair industry.
    Advance Auto has always been more consumer oriented.
    This acquisition should bring the best of both worlds to Advance.
    A competitor is now an ally, so that competitor is gone.
    In a local market where there are the two brands, I could see a choice being made.
    That choice would be easier if they were both corporate stores.
    I do remember being with International Harvester when they sold the Ag line to J.I. Case.
    In local markets where there were both brands, the new owner (J.I.Case) went in and sat both dealer principals down and told them that there would only be one J.I.Case dealer in town.
    That meant the two dealer principals had best get together to (a) either form one dealer, or (b) one sell out to the other, or (c) one goes independent, or change marques.
    Same thing could happen here, but it would happen with privately held franchises.
    This is not a new thing with Advance Auto.
    They bought Discount Auto Parts years ago and combined the two.
    Slowly, but surely, the Discount Auto Parts name went away.
    Individual product price comparisons on products is kind of funny.
    Those things are priced out a long time ago, and an announcement won't change pricing at the store level.
    Same thing with product offerings. There are contracts and agreements out there that are not easily changed.
    And some of those 'deals' might be better on one side, and the other might not have even had availability of that particular line.
    So, it could be a great deal for everybody involved. The emphasis is on 'could be'.
    We shall see.... Now the betting pool is on (a)'when' Pep Boys will get sold, and (b) 'when' Wix filters will get sold.
    (They are both up for sale right now)
    Just an opinion.
    Jeff
    Jeff



    Note: SDC# 070190 (and earlier...)

  8. #8
    President Member
    Join Date
    Dec 2005
    Location
    Surrey, British Columbia, Canada.
    Posts
    2,124
    If Advance Auto is looking at entering the Canadian market, they need to do a better job of analyzing the Canadian market than both Lowes and Target have done. Lowes entered the Canadian market several years ago and is not doing well. Target bought most of the Zellers stores (Hudson's Bay Company's discount outlets) promising to bring US prices to Canada. Hasn't happened because Target has admitted they underestimated transportation costs and higher salaries to account for a higher cost of living in Canada. Also, for a store like Target, some of the Zellers stores were not in the best part of town. The one near us is in a mall which is in a low income area.

    Terry

  9. #9
    Golden Hawk Member
    Join Date
    Oct 2004
    Location
    Wappingers Falls, New York, USA.
    Posts
    14,533
    The Wappingers Falls Advance is the nearest FLAPS to me at about two miles. I rarely buy anything there. Their prices are high and the help is not knowledgeable. Recently, I bought a car battery there. I was going to take it with me, but the price was the same if they installed it. They couldn't find the battery in the car and after I showed/explained it to them, they almost hooked the battery up with the polarity reversed (I stopped them just in time). One of the last things that I looked for there, seemed high priced. I went to the Poughkeepsie Advance, about 11 miles away. The price for the same item was about one-half. I bought it there. I do not know if one store is company owned and one is a franchise or if there is some other situation. For most parts, I find Rock Auto cheaper than the WF Advance, even with shipping included.
    Gary L.
    Wappinger, NY

    SDC member since 1968
    Studebaker enthusiast much longer

  10. #10
    Silver Hawk Member 8E45E's Avatar
    Join Date
    Aug 2005
    Location
    , , Canada.
    Posts
    9,917
    Quote Originally Posted by dictator27 View Post
    The one near us is in a mall which is in a low income area.
    So you're saying you live in a low income area????

    Craig

  11. #11
    Speedster Member BobWaitz's Avatar
    Join Date
    Sep 2009
    Location
    Hopkins, MN, USA.
    Posts
    348
    Meh. I worked at 10,000 Auto Parts back in the early 80's. None of the chains operating in the Twin Cities exist anymore. None of the chains that succeeded them exist anymore. We've got Napa, Advanced, O'Reilly, Carquest, and Autozone. I don't expect any of them to exist under those names 15-20 years from now.

    On the other hand, a number of the independents still exist, notably Welle Auto Parts -- where I always sent people when we didn't have what they want. I don't imagine any of them sell in a year the number of Thermoquads and Gear Reduction starters we sold in a week back then. Actually, IMO, the thing auto parts stores have going for them these days is how much longer modern drive trains last. When a car lasts 3 times as long as a car from 20 years ago, you sell a lot more rotors and pads!

  12. #12
    President Member
    Join Date
    Dec 2005
    Location
    Surrey, British Columbia, Canada.
    Posts
    2,124
    Quote Originally Posted by 8E45E View Post
    So you're saying you live in a low income area????

    Craig


    Terry

  13. #13
    President Member Corvanti's Avatar
    Join Date
    Aug 2010
    Location
    Wilmington, NC
    Posts
    2,679
    here in town, there are carquest, autozone, advance and o'reillys within 1/2 mile of each other.

    my 2 cents: with online auto parts - ebay, amazon, etc. plus continuous emails from az and adv offering large discounts for online purchases over a certain amount of $$$, most "non-emergency" parts will be purchased online.

    in the last few months, i've had to show the kids working at a local store what online price was shown if the part was "in stock" at the local store i went to.

    soon, it's going to be like the gas stations used to be - cash or credit, with credit costing more. picking up a part in stock at a store will be more than a online price that they put on a delivery truck and get it out to the store the next day...

    inventory control!
    Kerry

    '51 Champion Business Coupe - (Tom's Car). Purchased 11/2012.

    '40 Champion. sold 10/11. [IMG][/IMG] '63 Avanti R-1384. sold 12/10.[IMG][/IMG]

  14. #14
    President Member
    Join Date
    Jun 2009
    Location
    Dundas, Ontario, Canada.
    Posts
    1,346
    Does anyone have any idea what their plans are for Canada. BTW, I agree with dictator27's post about Lowes and Target. They came to Canada too late and without effective research and are not doing well at all.

    Stu Chapman

  15. #15
    President Member
    Join Date
    Dec 2005
    Location
    Surrey, British Columbia, Canada.
    Posts
    2,124
    Quote Originally Posted by Stu Chapman View Post
    Does anyone have any idea what their plans are for Canada. BTW, I agree with dictator27's post about Lowes and Target. They came to Canada too late and without effective research and are not doing well at all.

    Stu Chapman
    It has been several years since Lowes came to Canada. Considering that, there is precisely one Lowes store in the metro Vancouver area (about 3.2 million people). I've never been to it because it's too far away, but the last I heard, it has basically been reduced to a hardware store.

    My wife and I went to the opening of one of the Target stores here (not the one in my post above ). Target supposedly spent $2 million renovating it. It looked exactly the same inside as the old Zellers store it replaced. We both wondered where the money had gone.

    Terry

  16. #16
    Silver Hawk Member 8E45E's Avatar
    Join Date
    Aug 2005
    Location
    , , Canada.
    Posts
    9,917
    Quote Originally Posted by dictator27 View Post
    My wife and I went to the opening of one of the Target stores here (not the one in my post above ). Target supposedly spent $2 million renovating it. It looked exactly the same inside as the old Zellers store it replaced. We both wondered where the money had gone.
    I would guess most likely in the things you DON'T see in the name of energy efficiency. If it really was a run down old building, the could have easily changed out the former HVAC with a brand new LEEDS building management system. That alone is a major cost factor, not to mention new windows, etc.

    Craig

  17. #17
    Golden Hawk Member
    Join Date
    Dec 2005
    Location
    Ferndale, WA, USA.
    Posts
    17,479
    These could be a mixed blessing for us in the West where there are NO Advance Stores. We get NO Tax and most times Free shipping from Advance.

    Now if our Local CARQUEST becomes an Advanced, we will pay Tax. I have always found Advance to have good prices on line, which is of course the Only way I can buy from them currently.

    This will be a HUGE Plus for Advanced to go to the Mid West and the very Big West of the Rockies Market, without building a Single Store!

    Thanks Jeff, (I think!) for warning us of another pending DOOM, as if the Broke U.S. Government was not enough!
    Last edited by StudeRich; 10-19-2013 at 07:32 PM.
    StudeRich
    Second Generation Stude Driver
    Proud '54 Starliner Owner



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •