Shares of Genuine Parts Company (GPC) nudged up 0.64% on Jun 17, 2014, after it announced an agreement by its office products group, S. P. Richards Company, to acquire Impact Products, LLC. The transaction is subject to customary closing conditions and attainment of applicable regulatory approvals.
Genuine Parts expects the acquisition to culminate on Jul 1, 2014. Impact Products is a leading supplier of facility, janitorial and safety supplies in North America. The company has its headquarters in Toledo, OH and distribution centers in Toledo and Walnut, CA.
The deal is expected to boost revenues of Genuine Parts by $85 million per annum. Moreover, it will complement the acquisition of Garland C. Norris by S. P. Richards, which was completed on Feb 1, 2014.
Genuine Parts had announced three acquisitions simultaneously on Feb 3, 2014. Apart from the Garland C. Norris acquisition, EIS – the Electrical/Electronic Material Group of Genuine Parts – also completed the acquisition of the assets of Electro-Wire, Inc. on Feb 1, 2014.
Additionally, Motion Industries (Canada), Inc., an indirect wholly owned subsidiary of Motion Industries – the Industrial Group of Genuine Parts – completed the acquisition of 100% of the issued and outstanding common shares of Commercial Solutions Inc. on Jan 31, 2014.
Genuine Parts frequently undertakes acquisitions to expand its business. In the near term, the company is targeting bolt-on acquisitions of companies with annual revenues ranging between $25 million and $125 million.
Genuine Parts currently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the same industry are Dorman Products, Inc. (DORM), Standard Motor Products Inc. (SMP) and Douglas Dynamics, Inc. (PLOW). All these stocks carry a Zacks Rank #2.
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