In an acquisition that will make it the largest auto parts seller in North America, Advance Auto Parts said Wednesday that it would pay $2 billion to buy General Parts International Inc., which owns the Carquest brand.
Advance Auto Parts , based in Roanoke, Va., said in a statement that the combination of the two firms will result in annual savings and revenue improvements of $160 million within three years of closing the deal.
"This transformational transaction provides a compelling strategic opportunity for Advance to expand our geographic presence and commercial capabilities to better serve customers," Advance Auto Parts Chief Executive Darren Jackson said.
Advance Auto Parts will now pick up General Parts International's 1,246 company-operated stores, in addition to 1,418 independently operated Carquest stores.
Combined sales are expected to reach $9.2 billion, the companies said in statement.
Advance Auto Parts also released preliminary earnings figures Wednesday. The company said sales in its third quarter increased 4.3% to $1.52 billion compared with the same period a year earlier.
The sale is expected to close by early 2014. Shares of Advance Auto Parts jumped $13.18, or 16%, Wednesday, reaching $95.68.
ALSO:Copyright © 2015, CT Now