Genuine Parts Company (GPC) announced three acquisitions at its Industrial, Electrical/Electronic and Office Groups, which are expected to provide growth in the future.
Motion Industries (Canada), Inc., an indirect wholly-owned subsidiary of Genuine Parts’ Industrial Group, Motion Industries, completed the acquisition of 100% of the issued and outstanding common shares of Commercial Solutions Inc. (CSI) on Jan 31, 2014. The agreement for the purchase was announced on Dec 2, 2013. The acquisition is expected to generate annual revenues of about $100 million for Genuine Parts. Moreover, it will provide growth opportunities in Canada.
CSI is among the top independent national distributors of industrial supplies in Canada. It distributes bearings and power transmission products, complete solutions for drilling rigs and industrial and safety supplies to industrial consumers. CSI has operations in 22 locations in Canada and one in the U.S.
EIS, the Electrical/Electronic Material Group of Genuine Parts completed the acquisition of the assets of Electro-Wire, Inc. on Feb 1, 2014. The takeover is expected to generate annual revenues of around $100 million for Genuine Parts. Electro-Wire is a leading North American distributor and contract manufacturer of specialty wire and cable products. It has four operating locations in the U.S and serves the telecom and transit markets. Electro-Wire will help in strengthening the specialty wire and cable capabilities of EIS.
S. P. Richards, the Office Products Group of Genuine Parts, completed the acquisition of Garland C. Norris Company, Inc. (GCN) on Feb 1, 2014. This acquisition is expected to result in annual revenues of around $35 million for Genuine Parts. GCN is a regional wholesale distributor of Food Service Disposables and Janitorial and Cleaning supplies. The acquisition will expand the product offerings of S. P. Richards to adjoining markets.
Currently, Genuine Parts carries a Zacks Rank #3 (Hold). The company is a prominent player in the automotive replacement parts industry along with LKQ Corp. (LKQ), Motorcar Parts of America Inc. (MPAA) and Standard Motor Products Inc. (SMP).
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