PACCAR Completes Sale of Retail Automotive Parts Group
1 October 1999
PACCAR Completes Sale of Retail Automotive Parts Group
BELLEVUE, Wash.--Oct. 1, 1999--PACCAR Inc said today it has completed the sale of its retail automotive parts and accessories business to CSK Auto, Inc. for $143.2 million in cash, according to Mark C. Pigott, PACCAR chairman and chief executive officer.The previously announced transaction, which includes 194 stores under the trade names of Al's Auto Supply and Grand Auto Supply in Washington, Oregon, Idaho, California, Nevada and Alaska, was completed following approval by the Federal Trade Commission.
PACCAR said revenue generated from the sale would be utilized to accelerate introduction of new truck designs, expand financial services activities in North America and Europe and for investment in new technology ventures.
PACCAR has invested $300 million in its North American facilities during the past several years. Its successful acquisition of DAF Trucks in late 1996 and the subsequent purchase of Leyland Trucks in June of last year were important factors in the company's record earnings in 1998 and again in the first half of 1999.
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's expansion into Europe has created exciting new finance and leasing opportunities for our operations, and the recent opening of our new 425,000-square-foot, state-of-the-art factory near Montreal will enable the company to increase its market share in the North America medium-duty truck market," Pigott said.
"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.
"Such investments will enable PACCAR to extend its position as the leader in the commercial vehicles industry by providing 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 under the Braden, Gearmatic and Carco nameplates.
PACCAR shares are traded on the NASDAQ Exchange, symbol PCAR, and its homepage can be found at www.paccar.com.