Genuine Parts Expands to Europe With Purchase of Alliance Automotive Group
Genuine Parts Co. has agreed to buy Alliance Automotive Group, a leading distributor of vehicle parts, tools and equipment in Europe, for $2 billion from Blackstone Private Equity and a management group that has owned the company since 2014.
London-based Alliance Automotive Group is the second largest distributor of commercial vehicle replacement parts in Europe, serving about 30,000 auto repair and body shops through a network of 300 company-owned and 1,500 affiliated outlets in France, the United Kingdom and Germany. The company is also a member and the largest shareholder of the buying group GroupAuto International and generates gross annual billings of $2.3 billion, according to a statement released by the two companies on Sept. 25.
Genuine Parts is based in Atlanta and distributes automotive replacement parts in the United States, Canada, Mexico, Australia and parts of the Asia Pacific region. The company operates a fleet of 162 tractors, 62 straight trucks and 632 trailers, based on registration data on file with the U.S. Department of Transportation.
In addition, Genuine Parts operates separate business units that distribute office products, electrical and electronic components and industrial replacement parts in North America. The business generated total revenue of $15.3 billion in 2016.
“We are excited to combine with AAG and enter the European markets with critical scale and a leading market position in the automotive aftermarket,” said Paul Donahue, president and CEO of Genuine Parts. “AAG has a strong management team and a deep bench of talent, and our similar cultures an histories make this acquisition an excellent strategic fit.”
Jean-Jacques Lafont, CEO and co-founder of Alliance Automotive Group, said, “We are very pleased to combine our two great businesses and leverage our collective resources and expertise to accelerate growth.”
The deal is expected to close sometime in the fourth quarter of 2017.
