CSK Completes Acquisition of Grand Auto Supply and Al's Auto Supply
1 October 1999
CSK Auto Corporation Completes Acquisition of Grand Auto Supply and Al's Auto Supply- Acquisition Solidifies CSK's Position as the Leading Retailer of Automotive Parts and Accessories in the Western United States - PHOENIX, Oct. 1 -- 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 PACCAR Inc.'s subsidiary which operates 194 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. paid approximately $143.2 million in cash for the stock of PACCAR's subsidiary. CSK funded the purchase through its senior credit facility, which was increased. The acquisition of 194 stores solidifies CSK's position as the leading retailer of automotive aftermarket parts and accessories in the Western U.S. With the completion of the acquisition, CSK Auto now employs over 14,000 people and operates more than 1,100 stores, three major distribution centers and several regional distribution centers. CSK Auto, Inc. operates in 17 states under the trade names of Checker, Schuck's, Kragen and Big Wheel/Rossi. "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. 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.