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Genuine Parts' Two Groups to Expand Through Acquisitions

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Genuine Parts' Two Groups to Expand Through Acquisitions

Genuine Parts (GPC) announces that it is acquiring two companies for its Industrial and Automotive Groups.

Genuine Parts Company GPC announced that it is acquiring companies for its two groups. One of the acquisitions is for its Industrial Parts Group that operates under the name Motion Industries, while the other is for its U.S. Automotive Parts Group.

Genuine Parts’ Motions Industries has signed an agreement to acquire Sunrise, FL-based Hydraulic Supply Company (“HSC”). Established in 1947, HSC is a leading distributor of hydraulic, pneumatic, and industrial components and systems. Currently, HSC is present in 30 locations in the southeastern United States and is expected to generate $85 million of annual revenues.

Genuine Parts inked a deal to acquire Detroit, MI-based Hastings Auto Parts, Inc. Founded in 1981, Hastings will add four stores to the company’s distribution channel and will enable Genuine Parts to expand presence in the Detroit market. Hastings is anticipated to make approximately $10 million in annual revenues.

Genuine Parts Company Price and Consensus

 

Genuine Parts Company Price and Consensus | Genuine Parts Company Quote

Per president and CEO of Genuine Parts, HSC’s experience in the fluid power industry will enhance Motion's footprint for fluid power product growth. Further, Hastings’ addition will aid Genuine Parts’ U.S. automotive business to develop store footprint and to compete in the Detroit market. Effective closing date for both the acquisitions is Oct 1, 2018.

Price Performance

In the past six months, Genuine Parts’ stock has gained 15.4%, outperforming 7.3% increase recorded by the industry it belongs to.

 



Zacks Rank & Key Picks

Genuine Parts currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space include PACCAR Inc. PCAR, Honda Motor Co., Ltd. HMC and Oshkosh Corporation OSK. PACCAR and Honda sport a Zacks Rank #1 (Strong Buy) while Oshkosh carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PACCAR has an expected long-term growth rate of 10.8%. Over the past three months, shares of the company have gained 16.6%.

Honda has an expected long-term growth rate of 3%. Shares of the company have increased 0.2% in the past three months.

Oshkosh has an expected long-term growth rate of 18.3%. Over the past three months, shares of the company have gained 9.1%.

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