Compelling Financial Potential Sends Advance Auto Parts (NYSE:AAP)

Advance Auto Parts, Inc. (NYSE:AAP)

Shares of AAP jumped 16.56% (or $13.66) to $96.16 on Wednesday's trading session, after the company reported that it has entered into a definitive agreement to acquire General Parts International, Inc., a leading privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands, in an all-cash transaction with an enterprise value of $2.04 billion.

The transaction creates the largest automotive aftermarket parts provider in North America, with annual sales of over $9.2 billion and more than 70,000 Team Members. The strong combined financial profile allows for an all-cash transaction and supports AAP ’s commitment to maintain its investment grade rating.

According to the company, this strategic transaction presents an exciting opportunity for value creation and AAP is dedicated to delivering on the compelling financial potential this combination creates while remaining committed to maintaining its investment grade credit rating.

AAP ’s operating income during the Q3 is expected to be $170.7 million which was a 13.5% increase versus the same period last year, and earnings per diluted share (EPS) are expected to be $1.42 which was a 17.4% increase versus the Q3 last year. AAP also reaffirmed its previously released earnings per share 2013 annual outlook of $5.30 - $5.45.

AAP , a leading automotive aftermarket retailer of parts, accessories, batteries, and maintenance items in the United States, serves both the do-it-yourself and professional installer markets.

More about Advance Auto Parts, Inc. (NYSE:AAP) at www.AdvanceAutoParts.com

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