ATLANTA, Jan. 7, 2020 /PRNewswire/ -- Genuine Parts
Company (NYSE: GPC) announced today that it has completed the sale
of its wholly-owned subsidiary S.P. Richards Co. Canada Inc. (S.P.
Richards Canada) to Novexco Inc.
(Novexco), effective January 1,
2020.
S.P. Richards Canada represents
the Company's Business Products Group in Canada. S.P.
Richards Canada is a full-line,
nationwide wholesaler of office supplies, furniture, technology
products and facility and breakroom supplies, servicing office
products resellers across the country from locations in
Vancouver, Toronto, Calgary and Edmonton. In 2019, S.P.
Richards Canada's approximate
annual revenues were $50
million. The Company intends to use the cash proceeds
from the transaction in line with its disciplined capital
allocation strategy.
Paul Donahue, Chairman and Chief
Executive Officer of GPC, stated, "We are very pleased to complete
the sale of S.P. Richards Canada
and take another step forward in our strategy to optimize our
portfolio. Novexco is a leader in the industry and an excellent
partner for our Canadian customers and our employees. We want
to thank the entire S.P. Richards team, and in particular our team
in Canada, for making this
transaction possible."
Denis Mathieu, President and
Chief Executive Officer of Novexco, added, "This acquisition is
complementary to our current distribution channel. S.P. Richards
Canada's warehouses in
Western Canada will help us serve
our customers in the West, whereas our existing warehouses in
Eastern Canada will help reduce
the delivery time to S.P. Richards Canada's customers in the East. We are pleased
to expand our presence in Canada
and offer an array of products and a robust coast-to-coast
distribution service."
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 in the U.S., Canada, Mexico and Australasia through its Industrial
Parts 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 Novexco
Novexco, founded in 1996 and owned by its merchant members, is
the largest Canadian owned distributor of office supplies,
technology products and furniture. Since March 2018, its commercial activities, the
national sales division, the transactional website and the 109
Eastern-Canadian stores, have been grouped under the trademark
Hamster. The company also serves Canadian wholesalers under the
Chestwood division. Novexco supplies Canadian consumers and
businesses from its distribution centers in Vancouver BC, Calgary AB, Edmonton
AB, Markham ON, Brampton ON, Toronto ON, Laval QC, Montreal
QC and Dartmouth NS.
Novexco is part of the Platinum Club of the Best Managed
Companies in Canada. For more
information, visit the Novexco website at www.novexco.com.
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. This press release
contains forward-looking statements, including statements regarding
the completed business transaction between Novexco and GPC in which
GPC sold S.P. Richards Canada to
Novexco. From time to time, oral or written forward-looking
statements may also be included in other information released to
the public. These forward-looking statements are intended to
provide management's current expectations or plans for our future
operating and financial performance, based on assumptions currently
believed to be valid. Forward-looking statements often contain
words such as "expects," "anticipates," "estimates," "intends,"
"plans," "believes," "seeks," "will," "is likely to," "scheduled,"
"positioned to," "continue," "forecast," "predicting,"
"projection," "potential" or similar expressions. Forward looking
statements may include references to goals, plans, strategies,
objectives, projected costs or savings, anticipated future
performance, results, anticipated benefits of the completed
transaction, and other statements that are not strictly historical
in nature. These forward-looking statements are based on
management's current expectations, forecasts and assumptions. This
means they involve a number of risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied here, including but not limited to: negative effects of the
consummation of the transaction on the market price of GPC's common
stock and/or on its business, financial condition, results of
operations and financial performance; significant transaction costs
and/or unknown liabilities; the possibility that the anticipated
benefits from the proposed transaction cannot be realized in full
or at all or may take longer to realize than expected; or risks
associated with transaction related litigation. Stockholders,
potential investors and other readers are urged to consider these
risks and uncertainties in evaluating forward-looking statements
and are cautioned not to place undue reliance on the
forward-looking statements.
Forward-looking statements are only as of the date they are
made, and GPC 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.
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SOURCE Genuine Parts Company