CSK Auto Corporation Completes Acquisition of Big Wheel/Rossi Auto Parts Stores
1 July 1999CSK Auto Corporation Completes Acquisition of Big Wheel/Rossi Auto Parts Stores
- Acquisition Provides CSK with Growth Platform in Northern Plains/Midwest - PHOENIX, June 30 -- 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, completed its acquisition of substantially all of the assets of APSCO Products Company dba Big Wheel/Rossi, the leading retailer of auto parts in the Northern Plain states with 86 stores in Minnesota, North Dakota and Wisconsin. As previously announced, CSK Auto, Inc. paid approximately $60 million in cash for the assets, and funded the purchase through its senior credit facility, which was increased. CSK paid off certain indebtedness of Big Wheel/Rossi of approximately $3 million. The acquisition of the 86 Big Wheel/Rossi stores gives CSK an immediate presence of scale in the strategically important market adjacent to its current operations. With the completion of the acquisition CSK now employs over 12,000 people in 914 stores, three major distribution centers and several regional distribution centers. Before the acquisition of the Big Wheel/Rossi stores, CSK operated under the trade names of Checker, Schuck's and Kragen in 13 Western states. CSK intends to utilize Big Wheel/Rossi's existing distribution center in the Minneapolis area which CSK believes is capable of supporting significantly more stores than the existing 86 Big Wheel/Rossi stores. CSK plans to introduce to the newly acquired stores its commercial sales program in which CSK offers a broad product selection to professional installers, repair shops and fleet operators. Big Wheel/Rossi had minimal commercial sales while commercial sales represent approximately 18% of CSK's sales. "This acquisition of the Big Wheel/Rossi business provides CSK with an excellent platform for growth in the Northern Plains/Midwest 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. Big Wheel/Rossi, the leading auto parts retailer in the Northern Plains states with quality personnel, name brand products, and an average store size in excess of 6,500 square feet, is a great addition to the CSK family. We will leverage CSK's expertise in commercial sales, distribution and information technology, and take advantage of synergistic opportunities." 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, the state of the economy, inflation, consumer debt levels and weather. Actual results may differ materially from the anticipated results described in these forward-looking statements.