Genuine Parts Buys Remaining 65% Stake of Australian Industrial Distributor
Thursday, July 11th, 2019
Genuine Parts Company announced that Inenco Group (Inenco), headquartered in Sydney, Australia, has satisfied the terms and conditions of its agreement with the Company, allowing GPC to purchase the remaining 65% stake of Inenco, effective July 1, 2019. The Company previously purchased a 35% stake in Inenco on April 3, 2017 and held the opportunity to acquire the remaining stake at a later date.
Inenco, 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 AU$550 million (US$400 million). Inenco, combined with the Company's automotive business in Australasia, acquired in 2013, provides GPC with annual revenues of approximately AU$2.2 billion (US$1.6 billion) in this key region.
Paul Donahue, Chairman and Chief Executive Officer of Genuine Parts Company, stated, "We are very pleased to complete the Inenco acquisition and move forward with 100% ownership of this outstanding organization. Inenco and its talented management team have consistently exceeded our expectations throughout our two-year partnership and represent a significant addition to our global industrial portfolio. In addition, this business operates in the large and growing Australasian marketplace and presents synergistic opportunities via world class supplier partners and an extensive and diverse customer base, which align with Motion Industries, our industrial business in North America. Likewise, we expect to realize additional cost-related synergies associated with our automotive business in Australasia."
Roger Jowett, Chief Executive Officer of Inenco, commented, "We are excited to join the GPC family and grow our business together. GPC's understanding of the industrial markets and commitment to future growth fits well with the goals and values at Inenco. There is tremendous opportunity related to the product and service capabilities at Motion Industries, which we can introduce to the Australasian markets. Additionally, we look forward to capitalizing on the many resources provided by GPC's existing operations in Australasia."
The Company will provide more details associated with this acquisition and its contribution to future earnings in its second quarter conference call on July 18, 2019.