BOUCHERVILLE, Que. - Auto parts distributor Uni-Select Inc. (TSX:UNS) plans to purchase the U.S. mid-Atlantic parts distribution operations of Parts Depot Inc., a move it says will increase annual sales by US$180 million.
The deal includes nine regional parts distribution warehouses and 67 parts stores in the U.S.
Parts Depot will retain its Florida-based warehouse and store operations.
Uni-Select said the locations cater to independent jobbers, installers and, to a lesser extent, retail customers.
"This transaction supports our strategy of expanding our distribution footprint in the United States," Uni-Select president and CEO Richard Roy said in a release Thursday.
"The Parts Depot operations cover a territory that is almost completely complimentary to Uni-Select's distribution network and this acquisition provides a wonderful opportunity to continue our growth in the U.S. market."
The deal is expected to close in mid-September.
Uni-Select is the second largest distributor of automotive replacement parts, equipment, tools and accessories in Canada and the seventh largest in the U.S.
The company's shares were trading down 20 cents at $22.80 on the Toronto Stock Exchange Thursday.
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