Advance operates stores throughout southwest Ohio.
The Roanoke, Va., seller of auto parts and batteries currently operates more than 4,015 stores in the U.S., Puerto Rico and the Virgin Islands. General Parts is a privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the Carquest and Worldpac brands. The combined company will be based in Roanoke, Va., and continue to have a presence in Raleigh, N.C.
Advance Auto CEO Darren Jackson said the transaction provides a “compelling strategic opportunity” to expand the company’s geographic presence. In January, the company acquired privately held Northeast car parts supplier B.W.P. Distributors Inc., accelerating its growth in the Northeast.
Advance Auto also said Wednesday it expects third-quarter earnings of $1.42 per share on revenue of $1.52 billion, compared with year-ago earnings of $1.21 per share on revenue of $1.46 billion. Revenue at stores open at least a year is expected to decrease 2 percent. That’s an important measure for retailers because it excludes results from newly opened or closed stores.
Analysts polled by FactSet predict earnings of $1.31 per share on revenue of $1.55 billion.
The company on Wednesday also reaffirmed its full-year adjusted earnings forecast of between $5.30 and $5.45. Analysts expect $5.55 per share.