Genuine Parts Company (NYSE: GPC) announced that it has completed the sale of its wholly-owned subsidiary S.P. Richards Co. Canada Inc. (S.P. Richards Canada) to Novexco Inc. (Novexco), effective January 1, 2020.

S.P. Richards Canada represents the Company's Business Products Group in Canada.  S.P. Richards Canada is a full-line, nationwide wholesaler of office supplies, furniture, technology products and facility and breakroom supplies, servicing office products resellers across the country from locations in Vancouver, Toronto, Calgary and Edmonton.  In 2019, S.P. Richards Canada's approximate annual revenues were $50 million.  The Company intends to use the cash proceeds from the transaction in line with its disciplined capital allocation strategy.

Paul Donahue, Chairman and Chief Executive Officer of GPC, stated, "We are very pleased to complete the sale of S.P. Richards Canada and take another step forward in our strategy to optimize our portfolio. Novexco is a leader in the industry and an excellent partner for our Canadian customers and our employees.  We want to thank the entire S.P. Richards team, and in particular our team in Canada, for making this transaction possible."

Denis Mathieu, President and Chief Executive Officer of Novexco, added, "This acquisition is complementary to our current distribution channel. S.P. Richards Canada's warehouses in Western Canada will help us serve our customers in the West, whereas our existing warehouses in Eastern Canada will help reduce the delivery time to S.P. Richards Canada's customers in the East. We are pleased to expand our presence in Canada and offer an array of products and a robust coast-to-coast distribution service."