On Monday, Advance Auto Parts announced that it would be acquiring General Motors’ subsidiary Carquest for $2 billion. The deal is expected to close by the end of the year, and will give Advance Auto Parts over 5,000 stores in North America.
This is a huge deal for Advance Auto Parts, and will no doubt help them to better compete against their main rivals, AutoZone and O’Reilly Automotive. Carquest has been struggling in recent years, and this acquisition will give Advance Auto Parts a much needed boost.
The acquisition does come with some risks, however. Carquest has a lot of debt, and Advance Auto Parts will be taking on this debt as part of the deal. There is also the possibility that the integration of the two companies could be difficult and lead to problems down the line.
Overall, this is a good move for Advance Auto Parts. They are paying a fair price for Carquest, and will benefit from having a larger store presence in North America.
The risks are there, but if everything goes smoothly then this could be a big win for Advance Auto Parts.
Did Advance Auto Parts buy Carquest?
Yes, Advance Auto Parts acquired Carquest from General Motors for $2 billion. The deal is expected to close by the end of the year and will give Advance Auto 5,000 stores in North America.