Advance Auto Acquires B.W.P. - Analyst Blog
02 Janeiro 2013 - 8:40AM
Zacks
Advance Auto Parts Inc. (AAP) announced that it
has completed the acquisition of Armonk, New York-based supplier of
automotive aftermarket parts B.W.P. Distributors, Inc. (“BWP”) in
an all-cash transaction. The acquisition is a part of the company’s
expansion plan in the strategic growth area of Northeast.
BWP is a privately held company founded in 1962. It supplies,
markets and distributes automotive aftermarket parts and products
to commercial customers spread across 216 locations in Connecticut,
Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New
York, Pennsylvania, Rhode Island, and Vermont.
Due to the closing of the transaction, Advance Auto will operate
124 BWP stores and transfer the rights to an affiliate of General
Parts International, Inc. – a privately held auto parts supplying
company – to distribute its products to 92 independently owned
locations. In addition, the Roanoke, Virginia-based automotive
aftermarket parts retailer will continue to operate two BWP
distribution centers in Sutton, Massachusetts and Delran, New
Jersey.
Advance Auto posted a 14.2% fall in earnings per share to $1.21 in
the third quarter of the year from $1.41 in the same quarter a
year-ago due to weak sales in the cold weather markets,. However,
the EPS tallied the Zacks Consensus Estimate during the quarter.
Net income dipped 15.2% to $89.5 million from $105.6 million a year
ago.
Revenues in the quarter slid $7.5 million or 0.5% to $1.5 billion,
reflecting a 1.8% decrease in comparable store versus a comparable
store sales increase of 2.2% during the third quarter of 2011,
offset partially by the positive impact of net addition of 82
stores during the past 12 months.
Advance Auto Parts lowered its earnings outlook for 2012 due to the
short-term softness in sales. The company now expects to earn
between $5.05 and $5.15 per share for the year, down from the prior
guidance of $5.25 to $5.35.
As of October 6, 2012, the company’s total store count stood at
3,727, including 210 Autopart International stores. It competes
with AutoZone Inc. (AZO), O’Reilly
Automotive Inc. (ORLY) and Pep Boys-Manny, Moe
& Jack (PBY) and currently retains a Zacks #3 Rank on
its stock, which translates to a short-term (1 to 3 months) rating
of Hold.
ADVANCE AUTO PT (AAP): Free Stock Analysis Report
AUTOZONE INC (AZO): Free Stock Analysis Report
O REILLY AUTO (ORLY): Free Stock Analysis Report
PEP BOYS M M &J (PBY): Free Stock Analysis Report
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