Genuine Parts' stock gains after deal $2 billion deal to buy Alliance Automotive
Shares of Genuine Parts Co. (GPC) rose 1.2% in premarket trade Monday, after the automotive replacement parts company announced an agreement to buy European vehicle parts distributor Alliance Automotive Group for $2 billion, including the repayment of debt at closing. The deal, which is expected to close in the fourth quarter, is expected to add to earnings immediately after closing, and should boost fiscal 2018 earnings per share by 45 cents to 50 cents and generate $2.3 billion in gross annual billings. Genuine Parts expects to finance the deal with debt financing. The stock has lost 3.0% over the past three months through Friday, while the S&P 500 has gained 2.6%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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