Advance Auto Parts Sells Worldpac Subsidiary to Carlyle Group for $15 Billion
Key Takeaways
- Advance Auto Parts (AAP) has agreed to sell its Worldpac subsidiary to Carlyle Group (CG) for $15 billion in cash.
- Carlyle Group is a private equity firm that specializes in industrial investments.
- The sale of Worldpac represents the first major industrial investment by Carlyle Group in 2024.
Background
Advance Auto Parts is a leading automotive aftermarket parts supplier in the United States. Worldpac is a leading distributor of automotive aftermarket parts in North America. The sale of Worldpac will allow Advance Auto Parts to focus on its core business of providing automotive aftermarket parts to consumers.
Terms of the Deal
The sale of Worldpac is expected to close in the fourth quarter of 2024. Carlyle Group will pay $15 billion in cash for Worldpac. The sale is subject to regulatory approval.
Impact of the Sale
The sale of Worldpac will have a number of positive impacts for Advance Auto Parts. The sale will allow Advance Auto Parts to focus on its core business of providing automotive aftermarket parts to consumers. The sale will also provide Advance Auto Parts with a significant amount of cash that can be used to reduce debt, invest in new growth opportunities, or return to shareholders.
Conclusion
The sale of Worldpac is a major strategic move for Advance Auto Parts. The sale will allow Advance Auto Parts to focus on its core business and will provide the company with a significant amount of cash that can be used to fuel future growth.
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