Advance Auto Parts announced the sale of Worldpac, Inc., an automotive parts wholesale distribution business that generated $2.1 billion in revenue and approximately $100 million in EBITDA over the last 12 months, to global investment firm Carlyle for $1.5 billion. The sale, which is expected to be finalized before the end of this year, will allow Advance to focus more on its blended box business, the company said.
“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.”
Carlyle, on the other hand, adds Worldpac to its $435 billion worth of assets. The transaction is a part of Carlyle's $13 billion investment in industrial carve-outs over the past 20 years. Advance is expected to net $1.2 billion after taxes and fees.
"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 position us uniquely to support Worldpac and its team as an independent company."
