Advance Auto Parts Announces Closing of Sale of Worldpac to Carlyle
04 November 2024 - 2:00PM
Business Wire
- Transaction strengthens balance sheet and liquidity with $1.5
billion of cash proceeds.
- Advance to provide an update on strategic priorities and
financial objectives on November 14, 2024, in conjunction with
third quarter 2024 results.
Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive
aftermarket parts provider in North America that serves both
professional installers and do-it-yourself customers, today
announced the close of the sale of Worldpac, Inc. to global
investment firm Carlyle (NASDAQ: CG). The sale agreement was
announced on Aug. 22, 2024 with a transaction value of $1.5
billion. The company estimates net proceeds of approximately $1.2
billion after taxes and transaction costs.
“The completion of the Worldpac transaction is a pivotal moment
in the simplification of our business model,” said Shane O’Kelly,
president and chief executive officer. “The sale enables us to
focus on actions to strengthen our blended-box business, which will
elevate the performance of our core operations, and support our
goal of delivering consistent profitable operating results. We look
forward to providing an update at our next earnings call on
November 14.”
Advance Blended-Box Strategic Priorities and Financial
Objectives
On Thursday, November 14, 2024, in conjunction with reporting
third quarter 2024 results, the company expects to report adjusted
financials for the Advance RemainCo continuing operations. In
addition, the company plans to provide an update on strategic
priorities to elevate the performance of the Advance blended box.
The company expects that the disclosure of adjusted financials
along with a strategic road map for expanding adjusted operating
margin will provide a better understanding of the company’s future
potential.
The company has scheduled a conference call and webcast to begin
at 8 a.m. ET on November 14, 2024. The live webcast and related
presentation materials will be available on the company’s Investor
Relations website (ir.AdvanceAutoParts.com). To join by phone,
please pre-register online for dial-in and passcode information.
Upon registering, participants will receive confirmation with call
details and a registrant ID. A replay of the conference call and
webcast will be available on the company’s Investor Relations
website for one year.
About Advance Auto Parts
Advance Auto Parts, Inc. is a leading automotive aftermarket
parts provider that serves both professional installers and
do-it-yourself customers. As of July 13, 2024, Advance operated
4,776 stores and 320 Worldpac branches primarily within the United
States, with additional locations in Canada, Puerto Rico and the
U.S. Virgin Islands. The company also served 1,138 independently
owned Carquest branded stores across these locations in addition to
Mexico and various Caribbean islands. Additional information about
Advance, including employment opportunities, customer services, and
online shopping for parts, accessories and other offerings can be
found at www.AdvanceAutoParts.com.
Forward-Looking Statements
Certain statements herein are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are usually identifiable by
words such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “forecast, “guidance,” “intend,” “likely,” “may,” “plan,”
“position,” “possible,” “potential,” “probable,” “project,”
“should,” “strategy,” “will,” or similar language. All statements
other than statements of historical fact are forward-looking
statements, including, but not limited to, statements about the
sale of Worldpac, including statements regarding the benefits of
the sale, the expected use of proceeds and expectations for
economic conditions, future business and financial performance of
the company’s core blended box business, as well as statements
regarding underlying assumptions related thereto. Forward-looking
statements reflect the company’s views based on historical results,
current information and assumptions related to future developments.
Except as may be required by law, the company undertakes no
obligation to update any forward-looking statements made herein.
Forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from those projected or implied by the forward-looking statements.
They include, among others, the company’s ability to hire, train
and retain qualified employees, the timing and implementation of
strategic and other initiatives, deterioration of general
macroeconomic conditions, geopolitical conflicts, the highly
competitive nature of the industry, demand for the company’s
products and services, the company’s use of proceeds and ability to
maintain credit ratings, access to financing on favorable terms,
complexities in the company’s inventory and supply chain and
challenges with transforming and growing its business. Please refer
to “Item 1A. Risk Factors” of the company's most recent Annual
Report on Form 10-K filed with the Securities and Exchange
Commission (“SEC”), as updated by the company's subsequent filings
with the SEC, for a description of these and other risks and
uncertainties that could cause actual results to differ materially
from those projected or implied by the forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20241103820422/en/
Investor Relations Contact: Lavesh Hemnani T: (919)
227-5466 E: invrelations@advance-auto.com
Media Contact: Darryl Carr T: (984) 389-7207 E:
AAPCommunications@advance-auto.com
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