Discount Auto Parts Acquires Rose Auto Parts Stores
29 September 1998
Discount Auto Parts Acquires Rose Auto Parts Stores From Eastern Automotive Warehouse
LAKELAND, Fla.--Sept. 28, 1998--Discount Auto Parts, Inc. today announced that it had acquired the Rose Auto Parts chain through an asset purchase from Eastern Automotive Warehouse, Inc., a wholly-owned subsidiary of National Auto Parts Warehouse, Inc. The acquisition included 39 retail store locations, primarily located in southeast Florida, and a warehouse facility in Miami. The acquisition involved the purchase of inventory and furniture and equipment at these various locations. The acquisition of the Rose Auto Parts stores resulted in Discount Auto Parts' surpassing the 500 stores mark.
Closing of the transaction was completed today. The terms were not disclosed.
The Rose Auto Parts stores will be converted to Discount Auto Parts stores over the next several months, with selected stores likely to be closed as a result of market overlap.
"We believe that this acquisition should further strengthen our position in the south Florida market," said William C. Perkins, President of Discount Auto Parts. "The Rose Auto Parts stores will add to our existing store base of approximately 100 stores in South Florida, thus providing expanded opportunities to even better serve our retail customers, as well as adding to our ability to effectively service our expanding commercial delivery market."
Discount Auto Parts is one of the southeast's leading specialty retailers of automotive replacement parts, maintenance items and accessories for the Do-It-Yourself ("DIY") consumer. The company currently operates stores located throughout Florida, Georgia, Alabama, Mississippi, South Carolina, and Louisiana.
Forward Looking Statements
This release may contain forward looking statements which reflect the current views of the Company with respect to certain events that could have an effect on the Company's future financial performance. These statements include the word "should" and similar expressions. Any such forward looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from historical results or those currently anticipated.
These risks and uncertainties include increased competition, extent of the market demand for auto parts, availability of inventory supply, propriety of inventory mix, adequacy and perception of customer service, product quality and defect experience, availability of and ability to take advantage of vendor pricing programs and incentives, rate of new store openings, cannibalization of store sites, mix of types of merchandise sold, governmental regulation, new store development, performance of information systems, effectiveness of deliveries from the distribution center, ability to hire, train and retain qualified team members, availability of quality store sites, ability to successfully integrate the operations of acquired businesses, ability to successfully roll-out the commercial delivery service, credit risk associated with the commercial delivery service, environmental risks, availability of expanded and extended credit facilities, legal expenses associated with material matters and disputes, expenses associated with investigations concerning freon matters, potential for liability with respect to these matters and other risks.