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Genuine Parts Company Completes Acquisitions

22 January 1999

Genuine Parts Company Completes Acquisitions of H. A. Holden, Inc & Summit Insulation Supply

    ATLANTA--Jan. 21, 1999--Genuine Parts Company . Larry Prince, Chairman of the Board of Directors of Genuine Parts Company announced today the completion of the acquisition of H. A. Holden, Inc. ("Holden"), a national distributor of materials and parts to the Motor Repair Industry. Genuine Parts Company acquired Holden in exchange for a combination of cash and Genuine Parts Company stock.
    Holden, founded in 1954 in Minneapolis, Minnesota, has distribution facilities in Atlanta, Charlotte, Philadelphia, Houston, San Francisco, Denver and Florida. Holden will operate as a division of EIS, Inc. under the Electrical/Electronic Materials Group. Sales for Holden were approximately $50 million in 1998.
    Mr. Prince also announced today the acquisition of Summit Insulation Supply ("Summit") through an all cash transaction. Summit, a regional distributor and fabricator of electrical insulation materials to manufacturers of transformers and electric motors, is headquartered in Memphis, Tennessee, and serves 20-30 large original equipment manufacturers in the Southeast. Summit also has a small location in Harlingen, Texas, which services Mexico. Summit's sales for 1998 were approximately $15 million.
    Mr. Prince stated, "We believe the acquisitions of Holden and Summit offer EIS significant growth opportunity in both the Electrical/Electronics Industry and the Motor Repair Industry, and we are pleased to be associated with such fine organizations. We look forward to the contributions these two new members will make to our overall sales and earnings growth."
    EIS Chairman and CEO, Steve Kendall, commented, "As a part of the electrical apparatus market, the motor repair segment is important for EIS. Combined with Holden, our sales to this business segment will be approximately $100 million and should make EIS, Inc. the largest distributor to the motor repair industry. The addition of Summit to the EIS organization is also an important one. Not only will we be increasing our fabrication capacity and adding a top sales organization into the EIS framework, but we will also be increasing our strong position in the electrical market."
    Genuine Parts Company, headquartered in Atlanta, Georgia, is engaged in the distribution of automotive replacement parts from 62 NAPA Distribution Centers serving approximately 5,600 NAPA Auto Parts Stores nationwide, in Canada through NAPA/UAP, and in Mexico through its joint venture, Grupo Auto Todo. The company also distributes industrial replacement parts in the U.S. and Canada through its Motion Industries subsidiary, office supply products nationwide through it office products subsidiary, S. P. Richards Company, and electrical and electronic products through its EIS, Inc. subsidiary.
    Various statements in this release may constitute forward-looking statements. Actual results may differ materially from those indicated as a result of various important factors, which are discussed in Genuine Parts Company's most recent Annual Report on Form 10-K, and other filings with the Securities and Exchange Commission.