WORLDPAC Acquires Metrix Holdings, Inc
5 October 1999
WORLDPAC Acquires Metrix Holdings, Inc
NEWARK, Calif.--Oct. 5, 1999--Worldwide Parts and Accessories Corporation ("WORLDPAC") of Newark, California and Metrix Holdings, Inc. ("Metrix") of Hauppauge, New York announced today that they have agreed to the acquisition of Metrix by WORLDPAC.The combined company will be the leading independent supplier of automotive parts for imported cars and light trucks to independent specialized repair facilities in North America with a significantly enhanced capability to deliver the RIGHT PARTS at the RIGHT TIME. WORLDPAC will be the ongoing entity headquartered in Newark, California located near San Francisco. The combined company will be positioned to capitalize on the continuing increase in market share of imported cars and light trucks in North America and the corresponding demand for high quality replacement parts by specialized repair facilities.
Mr. Patrick Handreke, former Metrix chairman of the board, was elected as a director on the WORLDPAC Board. Mr. Tom O'Hare, WORLDPAC president, continues as the Chief Operating Officer and President of the new company. "The acquisition is a terrific strategic fit between two companies with complementary strengths and exceptional brand names," said Tom O'Hare. "The combined company will have significant market coverage and management depth. This acquisition provides us the opportunity to achieve national brand recognition, increased operational efficiencies and strong financial performance." WORLDPAC will also be able to fully leverage its Internet ordering software (D.I.A.L.) to a broader base of professional automotive repair shops. This software allows shops to check inventory using an electronic parts catalogue, view parts images and place live orders through the Internet.
Prior to the acquisition, WORLDPAC and Metrix, both privately owned companies, enjoyed significant success in their respective markets. WORLDPAC, which distributes parts for most major imported cars and light trucks, is the largest North American independent distributor of aftermarket and OEM quality parts for imported vehicles. Metrix is the largest national independent distributor of aftermarket and OEM parts for European automobiles, including BMW and Mercedes Benz, and the second largest independent distributor of aftermarket and OEM parts in Canada. WORLDPAC will continue to serve Canada through the four operating facilities located there. WORLDPAC and Metrix are both among the largest Bosch distributors in North America.
The acquisition will allow the companies to offer increased coverage throughout all of North America. WORLDPAC's 250,000 square foot facility in Newark, CA and Metrix's 123,000 square foot distribution warehouse in Edison, NJ will serve as the company's importing and replenishment centers.
In discussing the strategic fit of the two companies, Mr. O'Hare said, "Our new company will be a more effective business partner supplying over 50,000 part numbers to independent repair shops. We will have the size, scope and leadership necessary to provide the most innovative solutions in the business." Mr. O'Hare went on to say, "Together with our unique customer-focused services, we will create value for our customers, our vendors, our investors and our many talented associates."
Both companies engaged investment advisors for the transaction. Bear, Stearns & Co. Inc. advised WORLDPAC, while A.G. Edwards & Sons, Inc advised Metrix. "The potential that is being created through the merger of these two leading automotive distributors creates a stronger entity for WORLDPAC's customers, employees, suppliers and shareholders," said Stuart Taylor II, senior managing director at Bear, Stearns & Co. Inc. Mr. Taylor continued, "The combination of WORLDPAC's leading market positions in the Western U.S. and in Japanese product lines, together with Metrix's leading market positions in the Eastern U.S. and in European product lines, yields a more diversified company."
Please visit WORLDPAC'S web site at www.worldpac.com for future updates.