Advance Auto Parts Announces Sale of Worldpac to Carlyle for $1.5 Billion
RALEIGH, N.C., August 22, 2024 – Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America, announced that it has entered into a definitive agreement to sell Worldpac, Inc., an automotive parts wholesale distribution business, to funds managed by global investment firm Carlyle (NASDAQ: CG) for $1.5 billion in cash. The transaction is expected to close before the end of the year.
“We are pleased to announce the sale of the Worldpac business,” said Shane O’Kelly, president and chief executive officer. “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. On behalf of everyone at Advance, I would like to thank the more than 5,000 Worldpac team members for their dedication over the last ten years.”
“We are excited to partner with Worldpac, a great business operating in attractive markets,” said Wes Bieligk, a Partner, and Katherine Barasch, a senior member of Carlyle’s Global Industrials investing team. “Our proven track record in executing complex carve-outs positions 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.
Over the last twelve months ending at the second quarter of 2024, Worldpac generated approximately $2.1 billion in revenue and approximately $100 million in EBITDA. Advance expects net proceeds of approximately $1.2 billion after taxes and transaction fees.
Centerview Partners is serving as financial advisor and Hogan Lovells US LLP is serving as legal advisor to Advance on this transaction. BofA Securities is acting as lead financial advisor while BMO Capital Markets is also acting as a financial advisor to Carlyle. Latham & Watkins is serving as legal advisor to Carlyle.
As previously announced, Advance Auto Parts has scheduled a webcast at 8 a.m. Eastern Time today to discuss results for Q2 ended July 13, 2024, including additional information on this transaction.
Advance Auto Parts operates 4,776 stores and 321 Worldpac branches primarily within North America along with additional locations across Canada, Puerto Rico and other regions.
Carlyle manages $435 billion of assets across three segments: Global Private Equity, Global Credit and Global Investment Solutions.
For further details or inquiries:
– Investor Relations Contact: Lavesh Hemnani at (919) 227-5466 or invrelations@advanceautoparts.com
– Media Contacts: Darryl Carr at (984) 389-7207 or AAPCommunications@advance-auto.com; Brittany Berliner at (212) 813-4839 or Brittany.Berliner@carlyle.com
Forward-Looking Statements:
Certain statements herein are “forward-looking statements” within meaning defined by law involving risks that could cause actual results differing materially from projections due among others macroeconomic conditions or regulatory approvals delays.
