CSK Auto grows again! Reaches Agreement to buy Retail Automotive Parts Group from PACCAR

23 August 1999

PACCAR Reaches Agreement to Sell Retail Automotive Parts Group

    BELLEVUE, Wash.--Aug. 23, 1999--PACCAR Inc said today that it has agreed to sell its retail automotive parts and accessories business, which includes Al's Auto Supply and Grand Auto Supply, to CSK Auto, Inc. for $143.2 million in cash, according to Mark C. Pigott, PACCAR chairman and chief executive officer.
    PACCAR said that revenue generated from the sale would be utilized to accelerate introduction of new truck designs, to expand their financial services companies in North America and Europe and to fund investment in new technology ventures.
    "PACCAR has achieved tremendous growth in the 90s and now produces over 105,000 trucks annually. Our powerful brand name products -- Kenworth, Peterbilt, DAF and Foden -- have propelled the company to the forefront of the automotive industry," Pigott said.
    In July, PACCAR reported record first-half sales and earnings of $4.2 billion and $259 million ($3.29 per diluted share), respectively. The second quarter of 1999 was the tenth quarter in a row in which PACCAR's profits exceeded the comparable quarter a year earlier.
    "PACCAR is increasing its share of the Class 5-7 market in North America. The recent opening of our new 400,000-square-foot factory in Montreal will enable the company to meet strong demand for these products," Pigott said.
    "PACCAR Financial has over 90,000 trucks in its portfolio and is developing exciting finance programs for customers in Europe. In addition, PACCAR is embarking upon technology investments concentrated in three main areas: electronic communication in vehicles, material sciences applicable to truck cab designs and e-commerce, particularly in the financial services area," he added.
    "There is significant potential for PACCAR to extend its position as the leader in the commercial vehicles industry by offering innovative solutions to our customers' transportation requirements," summarized Pigott.
    PACCAR, an $8 billion company, is a leader in the design, development and manufacture of high quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, DAF and Foden nameplates. It also provides financial services and distributes truck parts related to its principal business. In addition, the Bellevue, Washington-based company manufactures industrial winches.
    PACCAR shares are traded on the NASDAQ Exchange, symbol PCAR, and its homepage can be found at www.paccar.com.