Advance Auto Parts Inc.
) announced that it has completed the acquisition of Armonk, New
York-based supplier of automotive aftermarket parts B.W.P.
Distributors, Inc. ("BWP") in an all-cash transaction. The
acquisition is a part of the company's expansion plan in the
strategic growth area of Northeast.
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BWP is a privately held company founded in 1962. It supplies,
markets and distributes automotive aftermarket parts and products
to commercial customers spread across 216 locations in
Connecticut, Delaware, Maryland, Massachusetts, New Hampshire,
New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.
Due to the closing of the transaction, Advance Auto will operate
124 BWP stores and transfer the rights to an affiliate of General
Parts International, Inc. - a privately held auto parts supplying
company - to distribute its products to 92 independently owned
locations. In addition, the Roanoke, Virginia-based automotive
aftermarket parts retailer will continue to operate two BWP
distribution centers in Sutton, Massachusetts and Delran, New
Advance Auto posted a 14.2% fall in earnings per share to $1.21
in the third quarter of the year from $1.41 in the same quarter a
year-ago due to weak sales in the cold weather markets,. However,
the EPS tallied the Zacks Consensus Estimate during the quarter.
Net income dipped 15.2% to $89.5 million from $105.6 million a
Revenues in the quarter slid $7.5 million or 0.5% to $1.5
billion, reflecting a 1.8% decrease in comparable store versus a
comparable store sales increase of 2.2% during the third quarter
of 2011, offset partially by the positive impact of net addition
of 82 stores during the past 12 months.
Advance Auto Parts lowered its earnings outlook for 2012 due to
the short-term softness in sales. The company now expects to earn
between $5.05 and $5.15 per share for the year, down from the
prior guidance of $5.25 to $5.35.
As of October 6, 2012, the company's total store count stood at
3,727, including 210 Autopart International stores. It competes
O'Reilly Automotive Inc.
Pep Boys-Manny, Moe & Jack
) and currently retains a Zacks #3 Rank on its stock, which
translates to a short-term (1 to 3 months) rating of Hold.