Being the king of the mountain means so much to Advance Auto Parts, one of the United States’ largest suppliers of car parts. It means so much to the company that they’re willing to spend billions of dollars to reach the top and be number one in the car part industry.
Advance Auto Parts declared last week that they will purchase over 1,400 branches of their competitor, Carquest, in a deal worth $2 billion. If finalized, the deal will push Advance Auto Parts to be one of the main players in the car parts game in the country. This move, if successful, will place Advance Auto Parts above its main competition, car part supplier giant AutoZone.
As declared by Advance Auto Parts last 2009, the company has 3,800 branches and employs over than 55,000 people. In comparison, Advance Auto Parts’ competitor, Carquest, employs only 500 people in its main branch.
Due to the planned deal, Advance Auto Parts shares in the stock market rose to 20%, the highest since the car part company went public. Those who have invested in Advance Auto Parts shares are excited due to the fact that if the acquisition pushes through, they’ll have a big amount added to their respective shares. Plus, Advance Auto Parts can enjoy an annual sale worth $9.2 billion if the deal is finalized. This deal will also push Advance Auto Parts to the top of the car parts industry, way above AutoZone which has revenue amounting only to $9 billion.