Carlyle Group Inc. is set to acquire Advance Auto Parts Inc.’s Worldpac unit for $1.5 billion, marking the firm’s first major industrial investment in over two years. Worldpac, a wholesale distributor of original equipment replacement parts, generated approximately $2.1 billion in revenue for the year ending June 30.
Advance Auto Parts, facing pressure from shareholder activists, announced the sale of Worldpac and its Canadian Carquest business last November to enhance shareholder returns and better compete with rivals AutoZone Inc. and O’Reilly Automotive Inc.
Martin Sumner, Carlyle’s head of global industrial & transportation, highlighted the resilience of the auto parts industry, noting that it is not tied to new car production but rather to the aging vehicle fleet. Carlyle has previously invested around $13 billion in industrial carve-outs, including companies like Nouryon and Axalta.
In a recent carve-out deal, Carlyle also agreed to acquire Baxter International Inc.’s kidney care business for $3.8 billion. Advance Auto Parts’ shares have fallen significantly from their 2021 peak, with a 28% decline since March, bringing the company’s market value to about $3.7 billion.
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