Advance Auto Parts will purchase one of its biggest competitors, General Parts International Inc., for around $2 billion, according to Reuters.
Advance Auto has often relied on acquisitions to offset a drop in organic sales. The General Parts purchase will give the company coast-to-coast access throughout North America, which should increase the customers the company reaches.
By combining both companies, Advanced Auto Parts stands to make $9.2 billion in annual sales, which is slightly above the current leader in auto part sales, AutoZone Inc.
AutoZone reported sale of around $9 billion last year, according Reuters.
The North Carolina-based General Parts operates approximately 40 percent of Carquest's 3,400 stores in North America. The company, founded in 1961, also owns Worldpac, which supplies replacement parts for imported vehicles.
As part of the deal, Advance Auto will get 1,246 company operated stores and 1,418 independently owned Carquest stores.
Back in July 2012, General Parts confirmed that it was auctioning off its Carquest stores for around $2 billion, according to Reuters.
Advance Auto will have to pay a termination fee however, of approximately $185 million, if the deal falls through.
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