Summary
O'Reilly Automotive, Inc. (ORLY) announced on May 2, 2005, a definitive agreement to acquire Midwest Auto Parts Distributors, Inc. for $61 million in cash. Midwest Auto Parts Distributors, headquartered in St. Paul, Minnesota, operates 71 stores across five states (Minnesota, Montana, South Dakota, Wisconsin, and Wyoming) and generated $98.7 million in sales for the fiscal year ending September 30, 2004. This acquisition is expected to significantly expand O'Reilly's geographic footprint and complement its existing dual market strategy. The transaction is anticipated to close on May 31, 2005, subject to customary closing conditions. O'Reilly expects this acquisition to be accretive to its earnings in 2005. The company also noted that this acquisition, combined with other planned store additions, will bring its total new stores for 2005 to approximately 160. Investors should note that the information provided is subject to forward-looking statements and associated risks, as detailed in the company's SEC filings.
Key Highlights
- 1O'Reilly Automotive has agreed to acquire Midwest Auto Parts Distributors for $61 million in cash.
- 2The acquisition includes Midwest's 71 stores located in Minnesota, Montana, South Dakota, Wisconsin, and Wyoming.
- 3Midwest Auto Parts Distributors reported $98.7 million in sales for the fiscal year ended September 30, 2004.
- 4The transaction is expected to close by May 31, 2005, subject to standard closing conditions.
- 5O'Reilly anticipates the acquisition will be accretive to earnings in 2005.
- 6This move expands O'Reilly's presence into five new states and complements its existing market strategy.
- 7The company plans to add approximately 160 new stores in total for 2005, including those from the Midwest acquisition.