CSK Auto Corporation to Acquire Grand Auto Supply and Al's Auto Supply
23 August 1999CSK Auto Corporation to Acquire Grand Auto Supply and Al's Auto Supply
- Acquisition to solidify CSK's position as the leading retailer of automotive parts and accessories in the Western United States - PHOENIX, Aug. 23 -- 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 a definitive agreement with PACCAR Inc. to acquire PACCAR's wholly-owned subsidiary which operates 192 stores under the trade names of Grand Auto Supply and Al's Auto Supply in Washington, California, Idaho, Oregon, Nevada and Alaska. These stores produced sales of approximately $225 million during the last twelve months. CSK Auto, Inc. will pay approximately $143.2 million in cash for the stock of PACCAR's subsidiary. CSK will fund the purchase through its senior credit facility, which will be increased. CSK Auto, Inc. is a specialty retailer in the automotive aftermarket operating approximately 926 stores in 17 states under the trade names of Checker, Schuck's, Kragen and Big Wheel/Rossi. The acquisition of the 192 stores solidifies CSK's position as the leading retailer of automotive aftermarket parts and accessories in the Western U.S. "The acquisition of Grand Auto Supply and Al's Auto Supply is consistent with our strategic plan to build our business and improve profitability through accretive acquisitions and significant new store openings," said Maynard Jenkins, Chairman and Chief Executive Officer of CSK Auto Corporation. "They are an excellent fit with CSK in that Grand and Al's strategy of offering quality name brand products is similar to CSK's, and their average store size is slightly larger than CSK's prototype. This will result in a relatively easy conversion to CSK's merchandising format." "Grand and Al's have recently initiated commercial sales programs to professional installers and repair shops that is running at 5% of sales, compared with CSK's 18%. We will be able to significantly increase their commercial sales, leverage our expertise in distribution and information technology, and take advantage of synergistic opportunities," said Jenkins. The closing, which is subject to the satisfaction of customary conditions, is expected to occur in October. Following the completion of the transaction, CSK Auto will employ over 14,000 people and operate more than 1100 stores. 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.