CSK Auto Inc to Aquire Automotive Information Systems
19 August 1999
CSK Auto, Inc. TO Acquire Automotive Information Systems Acquisition Provides CSK with Comprehensive Diagnostic Vehicle Repair Information to be Offered to its Retail, Commercial, and Internet Customers ________________________________________________________________________ PHOENIX, August 18, 1999 -- CSK Auto Corporation announced today that its wholly-owned subsidiary, CSK Auto Inc., the largest retailer of automotive parts and accessories in the Western United States and one of the largest such retailers in the country, has signed a definitive agreement to purchase Automotive Information Systems (AIS). AIS is a premier provider of diagnostic vehicle repair information to automotive technicians, automotive replacement parts manufacturers, automotive test equipment manufacturers, the Do-It-Yourself consumer and to various websites. This acquisition represents another strategic step in the implementation of CSK's Internet initiative that was commenced in June 1999 with the launch of http://www.cskauto.com/WWW.CSKAUTO.COM, the first e-commerce site of a major automotive aftermarket parts retailer. Founded in 1987, AIS has evolved into the nation's best source for knowledge of what breaks on vehicles, what vehicles it breaks on, and how to fix those vehicles correctly. AIS has built this knowledge base through continual analysis of data. Data is gathered from (1) the more than 250,000 calls it receives each year from technicians seeking diagnostic assistance for vehicle repair problems, (2) its staff of 32 Master Technicians with over 550 years combined years of experience performing vehicle diagnostics and (3) the nation's most comprehensive on-site library of factory vehicle service information. AIS markets its products and services under the brand name IDENTIFIX. These products and services include: technical hotlines serving more than 15,000 automotive shops; the Repair Trac; Service Bulletin; on-line diagrams containing over 50,000 wiring diagrams; consulting services to automotive equipment manufacturers; and consumer services provided through the company's world wide web site athttp://www.autoshop-online.com/>WWW.AUTOSHOP-ONLINE.COM. "Automotive Information Systems is the nation's leading provider of diagnostic information with the most comprehensive database of repair problems and solutions for vehicles that are out of warranty", said Maynard Jenkins, Chairman and CEO of CSK Auto. "We believe that one key to continuing our rapid growth is to provide our retail customers, our commercial customers, and our Internet customers with the highest quality diagnostic information available to help them identify problems correctly and obtain the parts they need efficiently." "The combination of AIS and its tremendous knowledge base with CSK and its retail and technical expertise will allow us to create a state-of-the-art vehicle diagnostic system that will be both useful and easy to use," said Jenkins. "In its 12 years of operations, AIS has built a loyal following of more than 15,000 repair shops who rely on AIS to provide them with the information resources they need to diagnose problems and repair cars quickly and efficiently. CSK is committed to supporting AIS's existing customer base while helping AIS develop new ways to deliver information to its customers," Jenkins concluded. CSK Auto, Inc. will pay approximately $10 million in cash for the St. Paul, Minnesota-based AIS. It will fund the purchase through its senior credit facility. CSK Auto, Inc. is the largest retailer of automotive parts and accessories in the Western United States with annual sales in excess of $1 billion, and is among the top five automotive aftermarket retailers in the nation. CSK operates over 900 stores under four brand names: Checker Auto Parts in the Southwest and Rocky Mountain regions, Schuck's Auto Supply in the Pacific Northwest, Kragen Auto Parts in California, and Big Wheel / Rossi in the Northern Plains region. Certain statements contained in this release are forward-looking statements. They discuss, among other things, expected growth, future store development strategy, business strategies, future revenues and future performance. The forward-looking statements are subject to risks, uncertainties and assumptions, including, but not limited to, competitive pressures, demand for the Company's products, uncertainties regarding Internet commerce, the state of the economy, inflation, consumer debt levels and the weather. Actual results may differ materially from the anticipated results described in these forward-looking statements.
