Carlyle has agreed to acquire Worldpac, an automotive parts wholesale distribution business, from publicly traded Advance Auto Parts for $1.5 billion in cash.
Worldpac sources its automotive parts from original equipment suppliers and manufacturers, maintaining an inventory of more than 110,000 SKUs for over 40 import and domestic vehicle carlines. The company’s parts database contains information on parts suitable for approximately seven million different combinations of vehicles, makes, models, and years.
According to Worldpac, its SpeedDial Parts Catalog and Fulfillment Ordering System is the most widely used and advanced parts ordering program in the industry, offering real-time parts availability 24/7, images of over 85,000 parts, and the capability to check prices, place orders, view invoices, and complete self-service returns.
Over the twelve months ending June 2024, Worldpac generated $2.1 billion in revenue and approximately $100 million in EBITDA. This equals a purchase price multiple of 15x.
“We are excited to partner with Worldpac, a strong business operating in attractive markets,” said Carlyle Partner Wes Bieligk and Principal Katherine Barasch in a released statement. “Our proven track record in executing complex carve-outs uniquely positions us to support Worldpac and its team as an independent company.”
Carlyle’s experience with industrial carve-outs includes more than $13 billion of capital invested over the past 20 years in companies such as Axalta, Nouryon, Atotech, Signode, and Allison Transmission. Axalta, formerly known as DuPont Performance Coatings, was acquired in 2013; Nouryon, formerly known as AkzoNobel Specialty Chemicals, in 2018; Atotech, a specialty chemical affiliate of Total Energies, in 2016; Signode, the industrial packaging group of ITW, in 2014; and Allison Transmission from General Motors Corporation in 2007.
Carlyle (NASDAQ: CG) invests worldwide in buyouts, growth capital, real estate, and leveraged finance. With $381 billion in assets under management, the firm has more than 2,200 employees across 29 offices on five continents and is based in Washington, DC.
Advance Auto Parts is a provider of automotive aftermarket parts—replacement parts, accessories, batteries, and maintenance items—to both professional installers and do-it-yourself customers through brick-and-mortar stores, e-commerce platforms, and wholesale distribution via its Worldpac subsidiary. In 2024, Advance operated more than 4,750 stores and 320 Worldpac branches, primarily within the United States, with additional locations in Canada, Puerto Rico, and the Virgin Islands. Advance is led by CEO Shane O’Kelly and is headquartered in Raleigh, North Carolina.
Centerview Partners is the financial advisor to Advance Auto Parts. BofA Securities and BMO Capital Markets are the financial advisors to Carlyle.
© 2024 Private Equity Professional | August 30, 2024
