Advance Auto Parts (a leading automotive aftermarket parts provider in North America that serves professional installers and do-it-yourself customers) announced that it has entered into a definitive agreement to sell Worldpac (an automotive parts wholesale distribution business) to funds managed by global investment firm Carlyle for $1.5 billion in cash. This deal is expected to close before the end of the year.
Carlyle’s investment in Worldpac builds on the firm’s extensive carve out experience in the Industrials sector, having invested about $13 billion in industrial carve-outs over the past two decades, including in such companies as Axalta, Nouryon, Atotech, Signode, and Allison Transmission.
In the last year, at the end of the second quarter of 2024, the Worldpac business generated about $2.1 billion in revenue and about $100 million in EBITDA. And Advance Auto Parts expects net proceeds of approximately $1.2 billion after taxes and transaction fees.
Centerview Partners is serving as financial advisor and Hogan Lovells US is serving as legal advisor to Advance on the transaction. BofA Securities is acting as lead financial advisor to Carlyle and BMO Capital Markets is also acting as a financial advisor to Carlyle. Latham & Watkins is serving as legal advisor to Carlyle.
KEY QUOTES:
“We are pleased to announce the sale of the Worldpac business. The sale enables our team to sharpen their focus on decisive actions to turn around the Advance blended box business. Proceeds from the transaction will provide greater financial flexibility as we continue our strategic and operational review to improve the productivity of the company’s remaining assets and better position the company for future growth and value creation. On behalf of everyone at Advance, I would like to thank the more than 5,000 Worldpac team members for their dedication over the last ten years.”
- Shane O’Kelly, president and chief executive officer
“We are excited to partner with Worldpac, a great business operating in attractive markets. Our proven track record in executing complex carve-outs position us uniquely to support Worldpac and its team as an independent company.”
- Wes Bieligk, a Partner, and Katherine Barasch, a senior member of Carlyle’s Global Industrials investing team
