Genuine Parts Company
) announced two acquisitions on Monday, which are expected to
cumulatively boost the company's annual revenues by more than
$115 million. Motion Industries, the industrial group of the
company, completed the acquisition of industrial distributor
Paragon Service & Supply, Inc.
Lima, Ohio-based Paragon provides custom-designed tooling to
metalworking customers in the area. This acquisition is expected
to improve Genuine Parts' annual revenues by $15 million.
Concurrently, Motion Industries (Canada), Inc., an indirect
wholly-owned subsidiary of Motion Industries, announced an
agreement to purchase 100% of the issued and outstanding common
shares of Commercial Solutions Inc. (CSI). The acquisition is
subject to customary closing conditions and approval from
shareholders as well as applicable regulatory bodies and
The acquisition of Edmonton, Alberta-based CSI is estimated to
culminate in the first quarter of 2014. It is expected to
generate annual revenues of over $100 million for Genuine
CSI is among the top independent national distributors of
industrial supplies in Canada. It distributes bearings and power
transmission products, complete solutions for drilling rigs and
industrial and safety supplies to industrial consumers. CSI has
operations in 22 locations in Canada and one in the U.S.
Genuine Parts reported a 1% year-over-year increase in
earnings per share to $1.12 in third-quarter 2013 from $1.11.
However, earnings missed the Zacks Consensus Estimate by 8
Revenues in the quarter grew 9.2% year over year to $3.68
billion, missing the Zacks Consensus Estimate of $3.74 billion.
The year-over-year improvement was due to hike in revenues from
the Automotive Parts segment, partially offset by decline in
demand in non-automotive businesses.
Currently, Genuine Parts carries a Zacks Rank #4 (Sell). The
company is a prominent player in the automotive replacement parts
industry along with
Motorcar Parts of America Inc.
Standard Motor Products Inc.
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