Genuine Parts to buy remaining stake in Australian distributor
Genuine Parts Company has entered into a definitive agreement to acquire the remaining 65 percent stake of Inenco Group, headquartered in Sydney, Australia.
Genuine Parts previously purchased a 35 percent stake in Inenco on April 3, 2017, and held the opportunity to acquire the remaining stake at a later date, subject to certain conditions being satisfied. The company expects to finance the balance of the purchase price using a combination of cash and borrowings. Subject to the satisfaction of customary closing conditions, the acquisition is expected to close on July 1, 2019.
Inenco Group, founded in 1954, is one of Australasia's leading industrial distributors of key product categories such as bearings, power transmission and seals. It has more than 160 locations across Australia and New Zealand as well as an emerging presence in Asia and generates estimated annual revenues of approximately $400 million.
"We are very pleased to enter the final phase of our Inenco Group acquisition. Given our successful partnership with Inenco over the last two years, we believe that 100 percent ownership of the company best positions us to participate in the large and growing industrial marketplace in Australasia," said Paul Donahue, Chairman and Chief Executive Officer of Genuine Parts Company. "Inenco is a market leader with an experienced and talented management team and significant growth potential and makes for a tremendous addition to our global industrial portfolio. We want to welcome the Inenco team to the GPC family, and we look forward to their many future contributions."
Roger Jowett, chief executive officer of Inenco, added, "As we complete the sale of our company, we are excited to join the GPC family and further build on our already strong relationship. The combination of GPC and Inenco is an excellent cultural and strategic fit, and we look forward to growing our business together."
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