Carlyle Group Inc. has agreed to acquire the Worldpac unit of Advance Auto Parts Inc. for $1.5 billion, marking the company’s first notable industrial investment in over two years. Worldpac, a wholesale distributor of original equipment replacement parts, reported approximately $2.1 billion in revenue over the 12 months ending June 30, according to a statement reviewed by Bloomberg News. This transaction continues a series of carve-out deals for Carlyle.
This deal comes as Advance Auto Parts has been under significant pressure from shareholder activists to divest its Worldpac unit. The objective is to improve compensation to better compete with industry leaders like AutoZone Inc. and O’Reilly Automotive Inc. The company announced in November that it would begin the sale process for Worldpac.
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