ATLANTA, July 10, 2019 /PRNewswire/ -- Genuine Parts
Company (NYSE: GPC) announced today that Inenco Group (Inenco),
headquartered in Sydney,
Australia, has satisfied the terms and conditions of its
agreement with the Company, allowing GPC to purchase the remaining
65% stake of Inenco, effective July
1, 2019. The Company previously purchased a 35% stake
in Inenco on April 3, 2017 and held
the opportunity to acquire the remaining stake at a later date.
Inenco, founded in 1954, is one of Australasia's leading
industrial distributors of key product categories such as bearings,
power transmission and seals. It has more than 160 locations
across Australia and New Zealand as well as an emerging presence in
Asia and generates estimated
annual revenues of approximately AU$550 million (US$400 million). Inenco, combined with the
Company's automotive business in Australasia, acquired in 2013,
provides GPC with annual revenues of approximately AU$2.2 billion
(US$1.6 billion) in this key
region.
Paul Donahue, Chairman and Chief
Executive Officer of Genuine Parts Company, stated, "We are very
pleased to complete the Inenco acquisition and move forward with
100% ownership of this outstanding organization. Inenco and
its talented management team have consistently exceeded our
expectations throughout our two-year partnership and represent a
significant addition to our global industrial portfolio.
In addition, this business operates in the large and growing
Australasian marketplace and presents synergistic opportunities via
world class supplier partners and an extensive and diverse customer
base, which align with Motion Industries, our industrial business
in North America. Likewise, we expect to realize additional
cost-related synergies associated with our automotive business in
Australasia."
Roger Jowett, Chief Executive
Officer of Inenco, commented, "We are excited to join the GPC
family and grow our business together. GPC's understanding of
the industrial markets and commitment to future growth fits well
with the goals and values at Inenco. There is tremendous
opportunity related to the product and service capabilities at
Motion Industries, which we can introduce to the Australasian
markets. Additionally, we look forward to capitalizing on the
many resources provided by GPC's existing operations in
Australasia."
The Company will provide more details associated with this
acquisition and its contribution to future earnings in its second
quarter conference call on July 18,
2019.
Forward Looking Statements
Some statements in this press release, 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 the anticipated strategic benefits,
synergies and other attributes resulting from this and other
acquisitions, as well as 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 integrate Inenco and
prior acquisitions into the Company and to realize the anticipated
synergies and benefits; changes in the automotive aftermarket or
changes in the industrial or business products markets; the
Company's ability to successfully implement its business
initiatives in each of its three business segments; slowing demand
for the Company's products; changes in national and international
legislation or government regulations or policies, including new
import tariffs and data security policies and requirements; changes
in general economic conditions, including unemployment, inflation
(including the impact of potential tariffs) or deflation and the
United Kingdom's referendum to
exit from the European Union, commonly known as Brexit; changes in
tax policies; volatile exchange rates; volatility in oil prices;
significant cost increases, such as rising fuel and freight
expenses; labor shortages; uncertain credit markets and other
macroeconomic conditions; competitive product, service and pricing
pressures; the ability to maintain favorable vendor arrangements
and relationships; disruptions in our vendors' operations,
including the impact of tariffs and trade considerations on their
operations and output, as required to meet product demand; failure
or weakness in our disclosure controls and procedures and internal
controls over financial reporting; 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 2018 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, Australasia, France, the U.K., Germany, Poland, the
Netherlands and Belgium. The Company also distributes
industrial replacement parts and electrical specialty materials in
the U.S., Canada and Mexico through its Industrial Products
Group. S.P. Richards Company, the Business Products Group,
distributes a variety of business products in the U.S. and
Canada. Genuine Parts Company had
2018 revenues of $18.7 billion.
Further information is available at www.genpt.com.
About Inenco Group
Founded in 1954, Inenco Group is a leading industrial
distributor of bearings, power transmission and seals in
Australia. Headquartered in Sydney,
Australia, Inenco has more than 160 locations with
distribution coverage across Australia and New
Zealand, as well as an emerging presence in Asia.
Inenco offers more than 350,000 products to over 55,000 diverse
customers in key end markets, including the mining, manufacturing,
agriculture and food and beverage industries. Further
information is available at www.inencogroup.com.au.
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SOURCE Genuine Parts Company