Atlanta-based Genuine Parts Co. on July 1 acquired the last 65 percent of Inenco Group, the Australian distributor in which it purchased a 35 percent stake in April 2017.
Inenco generates about $400 million in annual revenues from industrial parts including bearings, seals and power generation equipment at 160 locations in Australia and New Zealand.
The group complements Genuine Parts’ broader auto parts business in the Australia and Asia-Pacific regions, which overall nets the company $1.6 billion sales per year.
The company entered the Australia market in a major way in 2013, purchasing a 30 percent stake in auto parts supplier Exego Group before similarly acquiring the remainder of the company in a 2017 deal that created GPC Asia Pacific Pty Ltd. Melbourne-based Exego had more than 430 locations and upwards of a billion dollars in sales at the time. Genuine Parts paid $800 million for the final 70 percent stake.
The terms of the Inenco deal were not immediately released, though the company expects to provide more earnings guidance on a July 18 call.
Along with its own growth potential, Genuine Parts Chairman and CEO Paul Donahue said Inenco might help its Motion Industries industrial business in North America (based in Birmingham, Ala.) make further inroads in the fast-growing Asia-Pacific region.
“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,” Mr. Donahue said in a news release.
The announcement comes a month after Genuine Parts announced that it would acquire Netherlands-based PartsPoint Group, which six parts warehouses and 147 branches, mainly in the Benelux countries.
That deal was carried out via Genuine Parts’ London-based European subsidiary, Alliance Automotive Group, and was expected to result in an additional $330 million in revenues per year for the company.