ATLANTA and MELBOURNE, Australia Genuine Parts Co. (GPC) and the Exego Group announced that they have entered into a definitive strategic agreement whereby Exego will issue new shares to Genuine Parts Co., representing a 30 percent stake in Exego for approximately $150 million (U.S.) in cash.
Exego, headquartered in Melbourne, Australia, is a leading aftermarket distributor of automotive replacement parts and accessories in Australasia, with annual revenues of approximately $1 billion (U.S.) and a company-owned store footprint of more than 430 locations across Australia and New Zealand. Subject to regulatory approvals, the effective date of the investment is expected to be on or around Dec. 1.
GPC will have the option to acquire the remaining shares of the Exego Group at a later date, subject to Exego meeting certain earnings thresholds.
Thomas Gallagher, chairman, president and CEO of Genuine Parts Co., stated, “With this investment, Genuine Parts is well positioned to participate in the significant long-term growth opportunities in the Australasian aftermarket and the potential for targeted growth in Asia. Utilizing an initial minority investment in Exego, we are able to align ourselves with a company that has a leading market position and a long and successful history approaching almost 90 years in the automotive business.”