CSK Auto Corporation to Acquire All-Car Distributors, Inc.
13 March 2000CSK Auto Corporation to Acquire All-Car Distributors, Inc.
- Acquisition to Provide CSK with Strong Position in Wisconsin Market - PHOENIX, March 13 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 entered into an agreement to acquire substantially all of the assets of All-Car Distributors, Inc. (AllCar), headquartered in Antigo, Wisconsin. AllCar operates 22 stores, 21 in Wisconsin and 1 store in Michigan and had sales volume of approximately $31 million in 1999. Under the terms of the agreement, CSK Auto will pay approximately $865,000 in cash for the assets of AllCar and will assume certain indebtedness of approximately $3 million. CSK Auto will also assume vendor accounts payable and certain accrued expenses. The closing, which is subject to the satisfaction of certain conditions, is expected to occur in April 2000. CSK Auto, Inc. is a specialty retailer in the automotive aftermarket operating approximately 1100 stores under the trade names of Checker, Schuck's, and Kragen in 18 states. The acquisition of the 22 AllCar stores gives CSK an immediate presence of scale in a strategically important market adjacent to its current operations. AllCar has been in business for 28 years and has built a strong business throughout its markets. Its stores are the market leaders in a majority of its markets. The acquired stores will be serviced out of CSK's Minneapolis Distribution Center and be converted to the Checker Auto Parts name. "This acquisition of the AllCar business will provide CSK with an excellent platform for growth in the Wisconsin market," said Maynard Jenkins, Chairman and Chief Executive Officer of CSK Auto Corporation. "This transaction is consistent with our strategic plan to build our business and improve our profitability through accretive acquisitions and new store openings. The AllCar stores fill the gap nicely between our Milwaukee, Wisconsin and Minnesota stores in that none of the AllCar stores overlap with our existing stores. As with the other acquisitions we have completed, we expect a smooth and rapid conversion of these stores to our systems and merchandise, to take advantage of the strong summer selling season," said Mr. Jenkins. 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.