(By Balaseshan) Advance Auto Parts Inc. (NYSE: AAP) said it has agreed to buy New York's automotive aftermarket parts and products supplier B.W.P. Distributors Inc. in an all-cash transaction.
B.W.P. Distributors (BWP), a privately-held company that supplies, markets and distributes automotive aftermarket parts and products principally to commercial customers, was founded in 1962 and is based in Armonk, New York.
BWP currently operates or supplies 216 locations in Connecticut, Delaware, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. This acquisition will enable Advance Auto Parts to continue its expansion in the Northeast, which continuesAdvance Auto Parts to be a strategic growth area for Advance.
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After completion of this transaction, Advance will operate 124 BWP company-owned stores and will transfer the rights to distribute to 92 independently owned locations to an affiliate of General Parts International Inc. (GPI), a privately-held auto supply company.
Additionally, Advance will continue to operate two of BWP's distribution centers in Sutton, Massachusetts and Delran, New Jersey. GPI will operate BWP's other distribution center in Armonk, New York.
Headquartered in Roanoke, Virginia, Advance Auto Parts serves both the do-it-yourself and professional installer markets. As of October 6, 2012, the company operated 3,727 stores in 39 states, Puerto Rico, and the Virgin Islands.
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AAP is trading up 0.48% at $73.19 on Wednesday. The stock has been trading between $60.87 and $93.08 for the past 52 weeks.