Atlanta-based Genuine Parts Co. is set to purchase a 30 percent stake in an Australian auto parts replacement company for $150 million.
The investment in newly issued shares of Melbourne-based Exego Group provides a foothold in Australia and the surrounding region as well as an eventual stepping stone into Asia, Genuine Parts executives said. The company, the parent company of NAPA, currently distributes replacement parts in the U.S., Canada and Mexico.
Exego operates 430 stores in Australia and New Zealand and has annual revenues of about $1 billion. Genuine Parts will later have the option to purchase the remaining Exego shares. The initial investment is expected to take place at the beginning of December, pending regulatory approval.
Genuine Parts Co. had sales of $11.2 billion in 2010.
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