Highly successful AI provides replacement automotive parts to the growing Do-it-For-Me commercial market, as well as to warehouse distributors and jobbers. In 2004, AI generated annual sales of approximately $90 million. Advance expects this transaction to be immaterial to its financial performance for the third and fourth quarters of 2005.
Privately held AI's 61 auto parts stores throughout New England and New York State complement Advance's growing presence in the Northeast. Including the 61 stores acquired in this transaction, Advance now expects its total new store count for 2005 to be in the range of 220 to 230 stores, compared to prior guidance of 150 to 175 stores.
"The commercial market represents an excellent growth opportunity for Advance," said Jim Wade, executive vice president, business development. "The acquisition of AI augments Advance's share of the still highly fragmented commercial market.
"AI's commitment to exceptional quality, prompt service and competitive prices is exactly aligned with our value proposition, making this a terrific fit," continued Wade. "It is a pleasure to welcome AI's team members and customers to the Advance Auto Parts family."
Following a thorough assessment of AI's business, Advance believes AI's commercially oriented model and strong brand awareness will benefit by remaining under the AI brand name. AI's experienced management team, headed by CEO Roger Patkin, will continue to lead AI. He joined AI in 1990, and has served as a member of the Automotive Aftermarket Industry Association's Board of Directors.
"We are enthusiastic about joining the Advance team," Patkin said. "AI has been very successful as a private company serving the growing commercial aftermarket and we will now have the resources as part of Advance to realize our full potential."
About Advance Auto Parts, Inc.
Headquartered in Roanoke, Va., Advance Auto Parts is the second-largest automotive aftermarket retailer of parts, accessories, batteries and maintenance items in the United States, based on sales and store count. At July 16, 2005, the Company operated 2,708 stores in 40 states, Puerto Rico and the Virgin Islands. The Company serves both the do-it-yourself and professional installer markets.
Additional information about the Company, employment opportunities, services, as well as on-line purchase of parts and accessories can be found on the Company's website at www.advanceautoparts.com.
Certain statements contained in this release are forward-looking statements, as that statement is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events, developments or results, and typically use words such as believe, anticipate, expect, intend, plan, forecast, outlook or estimate. These statements discuss, among other things, expected growth and future performance including the number of new-store openings for 2005, the financial impact of acquired companies, and the integration of acquired stores. These forward-looking statements are subject to risks, uncertainties and assumptions including, but not limited to, competitive pressures, demand for the Company's products, the market for auto parts, the economy in general, inflation, consumer debt levels, the weather, and other factors disclosed in the Company's 10-K for the fiscal year ended January 1, 2005, on file with the Securities and Exchange Commission. Actual results may materially differ from anticipated results described in these forward-looking statements. The Company intends these forward-looking statements to speak only as of the time of the news release and does not undertake to update or revise them, as more information becomes available.