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O'Reilly Automotive Announces Purchase of KarPro Auto Parts

26 April 2000

O'Reilly Automotive Announces Purchase of KarPro Auto Parts

    SPRINGFIELD, Mo.--April 25, 2000--O'Reilly Automotive, Inc. ("O'Reilly") (Nasdaq-Amex:ORLY) today announced that it has entered into a definitive agreement to purchase certain assets of KarPro Auto Parts ("KarPro"), headquartered in Little Rock, Arkansas.
    Under the terms of the agreement, O'Reilly will purchase the inventory, fixtures and certain other assets of a 66,000-square-foot distribution center in Little Rock, Arkansas, and 14 KarPro stores throughout Arkansas for approximately $14 million in cash. O'Reilly will not assume any liabilities of KarPro. It is expected that the transaction will close September 30, 2000.
    KarPro operates 14 stores in Arkansas. 1999 sales volume for these stores was approximately $26 million. KarPro has been in business for approximately 25 years and has a strong wholesale hard parts background upon which O'Reilly can build both retail and professional installer business.
    "The KarPro team members and stores will be a great addition to our existing O'Reilly store base in the Arkansas market. We see this as a great opportunity on which to anchor our expansion in that state," stated Larry O'Reilly, Chairman and Chief Operating Officer of O'Reilly.
    O'Reilly currently operates 21 stores in Arkansas. The KarPro acquisition will net nine additional stores. Five KarPro stores and their team members will be combined with existing O'Reilly stores. O'Reilly plans to open 100 new stores in 2000, including the KarPro additions.
    O'Reilly Automotive is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional installer markets. Founded in 1957 by the O'Reilly family, the company currently operates 594 stores within the states of Texas, Missouri, Oklahoma, Kansas, Iowa, Arkansas, Louisiana, Nebraska and Illinois as of March 31, 2000.
    Statements contained in this press release, which are not historical facts, are forward-looking statements. Such forward-looking statements are necessary estimates reflecting the best judgment of the party making such statements based upon current information and involve a number of risks and uncertainties. Forward-looking statements contained in this press release or in other public statements of the company should be considered in light of those factors. There can be no assurance that such factors will not affect the accuracy of such forward-looking statements. We assume no obligation to update these forward-looking statements.