Advance Auto Parts Announces Purchase of the DieHard Brand from Transformco
December 23 2019 - 11:40AM
Business Wire
Advance Auto Parts, Inc. (NYSE: AAP) has acquired the DieHard
brand from Transform Holdco LLC (“Transformco”), for $200 million
utilizing cash on hand.
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This asset acquisition will give Advance the right to sell
DieHard batteries, the most trusted brand in the automotive battery
category, and enables Advance to extend the DieHard brand into
other automotive and vehicular categories. In addition, the deal
allows Transformco to sell DieHard brand batteries through its
existing channels pursuant to a supply agreement with Advance.
Advance is also granting Transformco an exclusive royalty-free,
perpetual license to develop, market, and sell DieHard branded
products in non-automotive categories.
“We are excited to acquire global ownership of an iconic
American brand. DieHard will help differentiate Advance, drive
increased DIY customer traffic and build a unique value proposition
for our Professional customers and Independent Carquest partners.
DieHard has the highest brand awareness and regard of any
automotive battery brand in North America and will enable Advance
to build a leadership position within the critical battery
category,” said Tom Greco, president and CEO, Advance Auto Parts.
“DieHard stands for durability and reliability and we will
strengthen and leverage the brand in other battery categories, such
as marine and recreational vehicles. We also see opportunities to
extend DieHard in other automotive categories. We remain committed
to providing our customers with high-quality products and excellent
service. The addition of DieHard to our industry leading assortment
of national brands, OE parts and owned brands will enable us to
differentiate Advance and drive significant long-term shareholder
value.”
“DieHard is among the most successful and one of the most widely
trusted brands in the auto industry, and we have long believed that
the brand has even more potential,” said Peter Boutros, President
of Transformco’s Kenmore, Craftsman and DieHard business unit.
“DieHard revolutionized the automotive battery category when it
launched in 1967, and has continued to be a leader in the category.
Advance Auto Parts’ acquisition of this iconic American brand will
complement our plans to introduce new DieHard products in
non-automotive categories such as sporting goods, lawn and garden,
authentic work wear and other exciting new categories.”
About Advance Auto Parts
Advance Auto Parts, Inc. is a leading automotive aftermarket
parts provider that serves both professional installer and
do-it-yourself customers. As of October 5, 2019, Advance operated
4,891 stores and 152 Worldpac branches in the United States,
Canada, Puerto Rico and the U.S. Virgin Islands. The Company also
serves 1,260 independently owned Carquest branded stores across
these locations in addition to Mexico, the Bahamas, Turks and
Caicos and British Virgin Islands. Additional information about
Advance, including employment opportunities, customer services, and
online shopping for parts, accessories and other offerings can be
found at www.AdvanceAutoParts.com.
About Transformco
Transform Holdco LLC is a leading integrated retailer focused on
seamlessly connecting the digital and physical shopping experiences
to serve its members – wherever, whenever and however they want to
shop. Transformco is home to Shop Your Way®, a social shopping
platform offering members rewards for shopping at Sears, Kmart and
other retail partners. Transformco operates through its
subsidiaries with full-line and specialty retail stores across the
United States.
Forward-Looking Statements
Certain statements in this report are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of
historical facts, may be forward-looking statements.
Forward-looking statements address future events or developments,
and typically use words such as “believe,” “anticipate,” “expect,”
“intend,” “plan,” “forecast,” “guidance,” “outlook” or “estimate”
or similar expressions. These forward-looking statements include,
but are not limited to, statements related to the benefits or other
effects of the acquisition, statements regarding expected growth
and future performance of the Company, and all other statements
that are not statements of historical facts. These statements are
based upon assessments and assumptions of management in light of
historical results and trends, current conditions and potential
future developments that often involve judgment, estimates,
assumptions and projections. Forward-looking statements reflect
current views about the Company's plans, strategies and prospects,
which are based on information currently available as of the date
of this release. Except as required by law, the Company undertakes
no obligation to update any forward-looking statements to reflect
events or circumstances after the date of such statements. Please
refer to the risk factors discussed in "Item 1a. Risk Factors" in
the Company's most recent Annual Report on Form 10-K, as updated by
its Quarterly Reports on Form 10-Q and other filings made by the
Company with the Securities and Exchange Commission, for additional
factors that could materially affect the Company’s actual results.
Forward-looking statements are subject to risks and uncertainties,
many of which are outside its control, which could cause actual
results to differ materially from these statements. Therefore, you
should not place undue reliance on those statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191223005397/en/
Advance Auto Parts: Media Relations: Darryl Carr
T: (984) 389-7207 E: darryl.carr@advance-auto.com
Investor Relations: Elisabeth Eisleben T: (919) 227-5466
E: invrelations@advanceautoparts.com
Transformco Media: Larry Costello T: (847) 286-9036 E:
Larry.Costello@searshc.com
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