Genuine Parts Company
) revealed that it will acquire the remaining 70% stake of Exego
Group - a leading aftermarket distributor of automotive
replacement parts and accessories in Australasia - for $800
million, including the assumption of certain debt.
GENUINE PARTS (GPC): Free Stock Analysis
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STRATTEC SEC CP (STRT): Free Stock Analysis
GENTHERM INC (THRM): Free Stock Analysis
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On Jan 1, 2012, Genuine Parts Company acquired a 30% stake in
Exego and held the option to acquire the remaining shares of the
company later. The company will purchase the remaining stake
using a combination of cash and debt. The transaction is expected
to close on Apr 1, 2013.
Formed in 1922 and headquartered in Melbourne, Australia, Exego
Group has annual revenues of more than $1 billion. It owns stores
at more than 430 locations across Australia and New Zealand.
Genuine Parts Company believes the acquisition will help the
company enjoy significant growth opportunities in the
Genuine Parts Company, a Zacks Rank #3 (Hold) stock, posted a
19.8% rise in earnings to $1.03 per share in the fourth quarter
of 2012 from 86 cents in the corresponding quarter of 2011,
beating the Zacks Consensus Estimate by 10 cents. Net income
increased 18.7% to $160.2 million from $135.0 million in 2011.
Revenues went up 3.5% to $3.1 billion, which compared with the
Zacks Consensus Estimate of $3.2 billion. The revenue increase
was driven by a respectable sales growth in three of the
company's four businesses.
Few stocks that are performing well in the industry where Genuine
Parts operates include
STRATTEC Security Corporation
Standard Motor Products Inc.
). Gentherm and STRATTEC Security are Zacks Rank #1 (Strong Buy)
stocks while Standard Motor Products carries a Zacks Rank #2