Atlanta, Georgia (March 30, 2017) -- Genuine Parts Company and Inenco Group announced today that Inenco will issue new shares to Genuine Parts Company, representing a 35 percent stake in Inenco for approximately $70 million (USD) in cash. The investment will go into place on April 3.
Genuine Parts Company will have the opportunity to acquire the remaining 65% stake in Inenco at a later date.
Inenco Group ,headquartered in Sydney, Australia, is one of Australasia’s leading industrial distributors of key product categories such as bearings, power transmission and seals. It has 161 locations across Australia and New Zealand as well as an emerging presence in Asia, and generates estimated annual revenues of approximately $325 million (USD).
"The Inenco investment offers Genuine Parts Company the opportunity to build on its presence in Australasia and join with a leading industrial distributor in the large and growing Australasian marketplace," Paul Donahue, President and Chief Executive Officer, said. "Led by an experienced and talented management team, Inenco is a market leader with a long and successful history, world class supplier partners and an extensive and diverse customer base. We are excited for both the automotive and industrial growth prospects in this geography and are confident that our investment in Inenco will serve to benefit our shareholders over the long-term.”
“We are very pleased to partner with Genuine Parts Company as they expand their industrial footprint into Australasia," Mitchel Martin-Weber, Director of Inenco, said, "Their value based sales philosophy, understanding of our industry and commitment to future growth align well with the goals and values at Inenco, and we look forward to growing our business together.”