ATLANTA, March 30, 2017 /PRNewswire/ -- Genuine Parts
Company (NYSE: GPC) and Inenco Group ("Inenco") announced today
that they have entered into a definitive strategic agreement
whereby Inenco will issue new shares to Genuine Parts Company,
representing a 35% stake in Inenco for approximately $70 million (US$) in cash. The effective
date of the investment is April 3,
2017.
Inenco Group, founded in 1954 and headquartered in Sydney, Australia, is one of Australasia's
leading industrial distributors of key product categories such as
bearings, power transmission and seals. It has 161 locations
across Australia and New Zealand as well as an emerging presence in
Asia, and generates estimated
annual revenues of approximately $325
million (US$).
The parties have agreed to a structure by which Genuine Parts
Company will have the opportunity to acquire the remaining 65%
stake in Inenco at a later date, subject to certain conditions
being satisfied.
Paul Donahue, President and Chief
Executive Officer, stated, "The Inenco investment offers Genuine
Parts Company the opportunity to build on its presence in
Australasia and join with a leading industrial distributor in the
large and growing Australasian marketplace. Led by an
experienced and talented management team, Inenco is a market leader
with a long and successful history, world class supplier partners
and an extensive and diverse customer base. We are excited
for both the automotive and industrial growth prospects in this
geography and are confident that our investment in Inenco will
serve to benefit our shareholders over the long-term."
Mitchel Martin-Weber, Director of
Inenco, said, "We are very pleased to partner with Genuine Parts
Company as they expand their industrial footprint into
Australasia. Their value based sales philosophy,
understanding of our industry and commitment to future growth align
well with the goals and values at Inenco, and we look forward to
growing our business together."
Forward Looking Statements
Some statements in this report, as well as in other materials we
file with the Securities and Exchange Commission (SEC) or otherwise
release to the public and in materials that we make available on
our website, constitute forward-looking statements that are subject
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Senior officers may also make verbal statements
to analysts, investors, the media and others that are
forward-looking. Forward-looking statements may relate, for
example, to future operations, prospects, strategies, financial
condition, economic performance (including growth and earnings),
industry conditions and demand for our products and services. The
Company cautions that its forward-looking statements involve risks
and uncertainties, and while we believe that our expectations for
the future are reasonable in view of currently available
information, you are cautioned not to place undue reliance on our
forward-looking statements. Actual results or events may differ
materially from those indicated as a result of various important
factors. Such factors may include, among other things, the
Company's ability to successfully implement its business
initiatives in each of its four business segments; slowing demand
for the Company's products; changes in legislation or government
regulations or policies; changes in general economic conditions,
including unemployment, inflation or deflation; changes in tax
policies; volatile exchange rates; high energy costs; uncertain
credit markets and other macro-economic conditions; competitive
product, service and pricing pressures; the ability to maintain
favorable vendor arrangements and relationships; disruptions in our
vendors' operations; the Company's ability to successfully
integrate its acquired businesses; the uncertainties and costs of
litigation; disruptions caused by a failure or breach of the
Company's information systems, as well as other risks and
uncertainties discussed in the Company's Annual Report on Form 10-K
for 2016 and from time to time in the Company's subsequent filings
with the SEC.
Forward-looking statements are only as of the date they are
made, and the Company undertakes no duty to update its
forward-looking statements except as required by law. You are
advised, however, to review any further disclosures we make on
related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other
reports to the SEC.
About Genuine Parts Company
Genuine Parts Company is a distributor of automotive replacement
parts in the U.S., Canada,
Mexico and Australasia. The
Company also distributes industrial replacement parts in the U.S.,
Canada and Mexico through its Motion Industries
subsidiary. S. P. Richards Company, the Office Products
Group, distributes business products in the U.S. and Canada. The Electrical/Electronic Group, EIS,
Inc., distributes electrical and electronic components throughout
the U.S., Canada and Mexico.
Genuine Parts Company had 2016 revenues of $15.3 billion.
About Inenco Group
Founded in 1954, Inenco Group is a leading industrial
distributor of bearings, power transmission and seals in
Australasia. Headquartered in Sydney, Australia, Inenco has 161 locations
with distribution coverage across Australia and New
Zealand, as well an emerging presence in Asia. Inenco
offers more than 300,000 products to over 55,000 diverse customers
in key end markets, including the mining, manufacturing,
agriculture and food & beverage industries.
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SOURCE Genuine Parts Company