CSK Auto, Inc. Acquires Automotive Information Systems
8 September 1999
CSK Auto, Inc. Acquires Automotive Information Systems Acquisition Provides CSK with Comprehensive Diagnostic Vehicle Repair
Information to be Offered to its Retail, Commercial, and Internet Customers
PHOENIX, Sept. 8 -- 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, acquired 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 Microsoft's CarPoint website.
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, 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 combined years of experience performing vehicle diagnostics and
(3) the nation's most comprehensive on-site library of factory vehicle service
information.
Since 1996, AIS has been a key content supplier to Microsoft's CarPoint
website. CarPoint, one of the most popular automotive sites on the web,
receives nearly three million unique visitors each month. Drawing on its
database of vehicle problems reported by technicians who call into its
hotline, AIS developed for CarPoint vehicle reliability ratings covering
seven major mechanical systems on approximately 800 vehicles. This is the
only assessment of vehicle reliability based upon data gathered directly from
technicians actually repairing the cars.
In addition, CarPoint also displays a database developed by AIS on
recommended maintenance schedules covering over 1,200 vehicles. AIS combined
original equipment maintenance schedule recommendations with its parts failure
analysis to create a unique product for CarPoint, which predicts vehicle life
cycle repair costs. CarPoint visitors can also use AIS's data to validate
repair cost estimates against nationally accepted cost standards.
AIS markets its products and services under the brand name IDENTIFIX(TM).
These products and services include: technical hotlines serving more than
15,000 automotive shops; the Repair Trac(TM) 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 at http://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. paid approximately $10 million in cash for the St. Paul,
Minnesota-based AIS. It funded 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.
CSK Auto, Inc. also recently announced that it entered into a definitive
agreement with PACCAR, Inc. to acquire PACCAR's wholly-owned
subsidiary which operates 192 stores under the trade names of Grand Auto
Supply and Al's Auto Supply in Washington, California, Idaho, Oregon, Nevada,
and Alaska. The closing, which is subject to the satisfaction of customary
conditions, is expected to occur in October. Following the completion of the
transaction, CSK Auto will employ over 14,000 people and operate more than
1,100 stores.
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.
