Automotive diagnostic tool developer Autel has teamed up with AI software company Revv to introduce an advanced driver assistance systems (ADAS) solution tailored to mechanical repair shops.

This collaboration will see Revv’s ADAS identification platform integrate with Autel’s MaxiSYS IA900 calibration tool, equipping shops with the technology and insights necessary to manage and calibrate ADAS components for today’s vehicles.

The partnership comes as demand for ADAS calibrations in mechanical repairs is rising, driven by the increase in safety and convenience systems in modern vehicles.

 “ADAS identification and calibrations are essential to the mechanical repair and service space to ensure the safe repair of customer vehicles,” said Autel CEO Chloe Hung. “We reviewed several ADAS research platforms, and Revv’s powerful systems identification software and AI-driven workflow perfectly fit our vision for a robust mechanical ADAS solution.

Key benefits of the Autel-Revv partnership include new revenue opportunities, enhanced accuracy and efficiency, improved safety standards and future-proofing for advancing technologies

 “Our collaboration enhances the ability of automotive repair shops to accurately and efficiently identify and perform ADAS calibrations, ultimately ensuring safer vehicles on the road,” said Revv CEO Adi Bathla.

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Cloud shop management system Tekmetric and customer relationship management Shopgenie announced the two companies have merged.

This partnership is set to deliver an all-in-one platform for shop owners across the U.S. and Canada, merging operations management with advanced customer service tools to drive business growth and improve customer experience.

The move could elevate Tekmetric to “unicorn” status — a milestone for companies valued at over $1 billion. Together, the platform aims to give shop owners control over operations, communications and customer engagement from a single interface. Combined, the two companies have a customer base of more than 10,000 shops.

“This combination sets a new standard for efficiency and customer experience in the industry,” said Sunil Patel, founder and CEO of Tekmetric. “At Tekmetric, we are committed to providing shop owners with best-in-class tools to manage and grow their businesses.”

He further praised Shopgenie’s ability to use technology to solve shop owners’ challenges.

“Together, we are building an all-in-one platform that empowers shop owners to attract, retain and serve customers more effectively, driving long-term growth,” Patel added.

Over the next several months, the companies will combine features into a unified system with streamlined access: One platform, one login, and a single contact number for all customer communications. Shops will continue to be able to access Tekmetric’s 70-plus integration options, while Shopgenie maintains support for other shop management system integrations.

Image credit: Depositphotos.com

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Aisin has acquired the business assets of Leon Import, an aftermarket import and sales company based in the Colon Free Trade Zone (CFTZ) in Panama.

In 2019, the two companies formed a joint venture, establishing Aisin Sales Latin America (ASLA) to consolidate their sales activities. The aim was to create an efficient organization, expand product offerings, and increase business in Central America, South America and the Caribbean. ASLA’s efforts led to the successful launch of a new distribution center, improving delivery times and customer service, which bolstered the automotive aftermarket in Latin America.

“Six years ago, we celebrated the formation of ASLA, and assembled an exceptional team of professionals who helped establish – and later achieve – some aggressive business targets in the Latin America automotive aftermarket,” said Aisin president and CEO Scott Turpin.

“These people helped grow and strengthen the AISIN brand in a market where we’ve done business for more than 25 years, though, previously, we had never quite reached our sales potential.

Current customers and distributors have been notified, ensuring no disruption to business relationships or operations. Turpin noted that the reaction to the acquisition has been very positive, with a small reception held last week to celebrate the new organization.

Image credit: Depositphotos.com

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PGW Auto Glass has announced it has acquired PH Vitres d’Autos and its affiliates from Driven Brands, marking an in the Canadian market.

PH Vitres d’Autos is a provider of wholesale auto glass distribution, retail installation, calibration and related services in eastern Canada, based in Sainte-Perpetue, Quebec. The company has more than 300 associates across 22 locations in Quebec, Ontario, New Brunswick and Nova Scotia.

“PH Vitres has a long history of operational excellence and outstanding customer service, and this acquisition enhances every element of our business,” said Todd Fencak, CEO of PGW Auto Glass.

He added that the company will be part of its overall footprint and will collaborate to provide customers with the best tools to manage their businesses  

 “It is my pleasure to welcome the PH Vitres team to join us on our mission to be North America’s No. 1 supplier of solutions to the auto glass industry,” Fencak said.

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Steer, a customer resource management platform for automotive shops, has announced its merger with AutoOps, a provider of intelligent scheduling software for auto repair shops. This merger aims to revolutionize the customer experience for independently owned and multi-location automotive shops by integrating AutoOps’ advanced scheduling capabilities with Steer’s comprehensive CRM platform.

The integration will provide Steer customers with access to AutoOps’ advanced scheduling features at no additional cost. These features include advanced settings, loaner car tracking, unfinished appointment follow-ups and the ability to upsell services. These tools will integrate seamlessly with Steer campaigns and Vehicle Pages without disrupting existing website functionality or features like Reserve with Google scheduling.

“From day one, Steer and AutoOps have been working toward the same goal: To help automotive shops provide the best possible service experience for their customers,” said Parker Swift, CEO of Steer. “With limited time and resources, shop owners are in urgent need of simplified workflows. AutoOps has created the finest scheduling capabilities in the industry – by bringing our functionalities together, we’re providing our shared customers a best-in-class CRM and online scheduler all in one platform. In other words, we’re delivering on our promise to make their lives easier.”

AutoOps users not currently on Steer will now have full access to Steer’s CRM, including customer communication options such as automatic text and email service reminders, review collection, and maintenance alerts, all available at a low-cost bundled rate.

“AutoOps and Steer share a vision of creating best-in-class and easy-to-use tools to help automotive shop owners succeed,” said Steve Fafel, Co-Founder of AutoOps. “Together, we will help automotive businesses increase profits, save time, and give their own customers a consistent and seamless experience. There’s a lot to look forward to as we work together to create the best solutions for our users.”

Image credit: Depositphotos.com

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Worldpac executive vice president Bob Cushing speaks during Worldpac STX 2024 in Nashville

The future of Worldpac is now clearer following the long-awaited announcement about its next owner.

Advance Auto Parts announced on Aug. 22 that it has agreed to sell Worldpac for $1.5 billion in cash to funds managed by global investment firm Carlyle. The transaction is expected to close before the end of the year.

Worldpac was put on the block in November last year after Advance president and CEO Shane O’Kelly said he’s been working with the board and management in reviewing the business.

Read more: Experts offer their thoughts on the sale

Advance’s Canadian business, Carquest, was also said to be for sale though no announcement or updates about it have been provided.

“The sale enables our team to sharpen their focus on decisive actions to turn around the Advance blended box business,” O’Kelly said in an announcement. “Proceeds from the transaction will provide greater financial flexibility as we continue our strategic and operational review to improve the productivity of the company’s remaining assets and better position the company for future growth and value creation.”

He went on to thank the 5,000-plus members of the Worldpac team over the last 10 years, when Advance acquired Worldpac.

Carlyle is no stranger to the aftermarket and automotive as its portfolio includes the likes of Axalta, specialty chemicals company Nouryon and Allison Transmission.

“We are excited to partner with Worldpac, a great business operating in attractive markets,” said Wes Bieligk, a partner, and Katherine Barasch, a senior member of Carlyle’s Global Industrials investing team. “Our proven track record in executing complex carve-outs position us uniquely to support Worldpac and its team as an independent company.”

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The news of Worldpac’s sale to a private equity group was met positively by industry observers and experts, seeing it as a good deal for both Advance Auto Parts and Worldpac.

On Aug. 22, Advance announced a $1.5 billion deal to sell Worldpac, a wholesale distributor of automotive replacement parts, specializing in import vehicle components, to a private equity firm, Carlyle.

“Advance has been struggling with operations and integration and they needed the cash,” observed Kumar Saha, columnist for Jobber News and U.S. vice president and Canadian managing director for Eucon, a global automotive data firm. “Worldpac had remained largely independent in their operations, so the sale was the easiest plug-and-play.”

The sale to private equity was not much of a surprise as many speculated that to be the ultimate path.

Former Worldpac executive and now-retired aftermarket veteran Joe Mercanti figured this was the best result for Worldpac, which was resource-starved as part of Advance and there being a mismatch in business models.

“It just didn’t mix,” he said about the two models. “They tried to mix it, but it just didn’t mix. So I think it’s going to be good.”

“Worldpac had remained largely independent in their operations, so the sale was the easiest plug-and-play.”

Ken Coulter, president of Ontario-based Specialty Sales & Marketing Inc., was encouraged by the sale, expecting it to lead to greater internal investment.

“Since the announcements of a pending sale last year, no doubt many initiatives at Worldpac have probably been slowed down or on hold,” he told Auto Service World. “With a path forward now in place, one can expect to see some investments forthcoming in logistics, human resources, etc.”

However, Saha thought Worldpac could fill the needs of a traditional aftermarket company, given its specialty within the import market.

“I am surprised that a strategic buyer did not target Worldpac, considering its import focus could fill holes for the likes of an AutoZone or Canadian Tire,” he told Auto Service World. “But PEs make the most compelling offers and may have made the most financial sense for Advance.”

Bob Cushing, Worldpac, and Shane O’Kelly, Advance Auto Parts, speak to the media at the 2024 Wordlpac STX event in Nashville

To that point, Coulter figured that other aftermarket networks probably checked in — and maybe even placed a bid.

“On a purchase such as Worldpac, it would have to make sense to an existing network in all aspects — strategic, financial, logistical, etc.,” Coulter observed. “If it fit all categories with an existing network, we would probably be reading a different news brief today.”

Mercanti said he didn’t hear about an aftermarket company being included in the process but figured if one ultimately closed the deal, they’d face the same integration problems Advance had because of the different, and unique, model that Worldpac is.

“You can’t mix the two. It’s two different things,” Mercanti said in an interview. “I think it’s great that it’s an equity company and they’ll see that Worldpac makes money.”

“I think it’s great that it’s an equity company and they’ll see that Worldpac makes money.”

And there doesn’t seem to be much of a concern about a private equity owner — any fears that the company may be slashed to either improve the bottom line or spun off again weren’t there for the experts we spoke to.

Coulter called it a good move. “Carlyle is extremely diverse and not oblivious to our aftermarket historically or currently,” he said, pointing to Axalta as being a market leader.

Carquest was also mentioned at the same time back in November as being for sale but no deal has been announced, neither has an update been provided. Coulter doesn’t believe there’s as much urgency to sell Advance’s Canadian operations.

“Carquest Canada is still a viable entity today with decent corporate store capacities and an extremely loyal associate following,” he pointed out. “There are also different means in which Canada can contribute to the transitions taking place with Advance/Carquest south of the border.  That does not mean to say that if someone came along with a cheque today [that] a sale would not take place.”

But Carquest will be a harder sell, Mercanti predicted.

“It’s going to be hard to separate it from what they have now,” he explained. “I mean, their computer systems are all hooked into Advance and a lot of other things. I think it’s not going to be an easier sale.”

He noted other large groups could be interested in Carquest, like LKQ or NAPA — but they’re so big already that they don’t really need it.

“So who’s going buy? I mean, someone can buy it just get rid of a competitor,” Mercanti said, adding that it could instead be an entry point for an American company to move north.

“Once key elements have been addressed, look for aggressive marketing and sales strategies in an attempt to garner growth and market share in the coming years ahead.”

Now that one of the biggest deals has taken place, what will change in the aftermarket?

“Private equity corporations don’t buy companies to stay the same or hum along as they were,” Coulter explained. “Canada is different, so we will probably see a different approach here, as opposed to the USA.

“Once key elements have been addressed, look for aggressive marketing and sales strategies in an attempt to garner growth and market share in the coming years ahead.”

Mercanti agreed and echoed Coulter’s earlier sentiments about Worldpac now being able to grow with this chapter now closing.

“They’ll put all kinds of resources into it and then grow it,” he predicted. “Because even when I was there, I know we were being starved of growth. I know if they put in 10 more locations, they can double their business.

“Their business model works. That’s the thing. The business model works.”

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Three stores in Newfoundland are now part of the Vast-Auto family.

The Montreal-based auto parts supplier announced it added three new Parts City Auto Parts company-owned stores. Formerly known as Browne’s Auto Supplies, the stores are located in Mount Pearl, St. John’s and Bay Roberts, Newfoundland.

In the announcement, Mauro Cifelli, president of Vast-Auto, welcomed the new team members to the company, noting it serves as a springboard for the company to expand further in the province.

“The stores will continue to operate at their current addresses and their phone numbers remain the same. The team members are excited to continue to serve their customers’ auto parts needs as members of Parts City Auto Parts,” he added. “Our priority will be to capitalize on our high-quality parts, exceptional product availability, strong distribution network, and outstanding team members to deliver excellent customer service.”

These new locations add to Vast-Auto’s two distribution centers and seven satellite warehouses — five in Ontario — that support company-owned stores, independent partners and service centres across Eastern Canada.

The company added its latest warehouse in May in Oakville, Ont. The company noted the addition as part of its growth strategy, a move that was indicated following its acquisition by O’Reilly Automotive at the end of 2023.

“This is a significant milestone and fantastic opportunity for Vast-Auto and will be a catalyst to accelerate our expansion throughout Canada,” president and CEO Mauro Cifelli said in December in an announcement about the acquisition.

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After a couple of acquisitions out west, Uni-Select announced deals in each of Ontario and Quebec.

In Toronto, General Auto Parts is one of them. In the community since 1959, it caters its automotive aftermarket parts to retail, wholesale and corporate customers.

Its 32,000 sq-ft. store is located near Pearson International Airport and is staffed by 27 employees.

“Joining forces with Uni‐Select represents a strategic leap forward,” said Harold Baker, president of General Auto Parts. “The respect and understanding that have characterized our discussions are set to forge a path of sustained growth and innovation.”

In Saint‐Eustache, Québec, long-time member Miron Auto Dépôt has been acquired. It has served the community for 50 years.

“We are happy to see our legacy continued by Uni‐Select, a company that stands on similar entrepreneurial foundations,” said Robert Mirron, president of the company. “Choosing Uni‐Select was a natural fit, given our mutual dedication to a customer‐first approach and deep appreciation for our employees.”

Recently, Uni-Select acquired Alder Auto Parts in British Columbia.

“The acquisition of General Auto Parts and Miron Auto Dépôt marks another important step for us in our growth strategy as we continue to expand our store network, further solidifying our footprint in these strategic markets,” said Émilie Gaudet, president and chief operating officer of Uni‐Select.

The flurry of moves comes less than a year after LKQ completed its acquisition of Uni-Select.

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Recochem has acquired the auto care business of KIK Consumer Products, which includes the Prestone brand.

KIK is a manufacturer of pool, household and auto care consumer products. Holt is one of its U.K. brands. The company developed, manufactured and marketed antifreeze/coolant and other essential automotive fluids and car appearance products in North America and other international markets.

Recochem is based in Montreal, founded in 1951. The deal and allows the company to create “a global automotive solutions group with significant economies of scale and opportunities to bring new automotive solutions and products to customers across all its key markets,” the announcement said.

Terms of the deal were not disclosed. In November 2023, Recochem was acquired by private equity firm CapVest Partners.

KIK said the timing was right to make the sale as it decided to invest further in its household and pool care businesses.

“Recochem, Prestone and Holts are highly complementary businesses, and the combined platform will offer customers a wide range of products across multiple categories that are experiencing consistent long-term growth,” said Shawn Davies, Recochem’s CEO. “Today’s transaction will provide the enlarged business and individual business units with significant opportunities to expand, develop and broaden our relationships with our key partners.”

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Months after expanding its British Columbia footprint, Uni-Select announced it’s growing even more.

The company has acquired Alder Auto Parts, a long-time Uni-Select member. The business has been around since 1978 and currently serves Port Kells and Cloverdale, just outside of Surrey, and Aldergrove, near Langley, with 34 staff members.

“Joining Uni-Select starts a new and important chapter for us,” said John Feddersen, president of Alder Auto Parts. “We are proud to unite with a company that respects our heritage and shares our values. This partnership will amplify our strengths and continue the legacy we have built in this community.”

The total number of corporate stores in the province is now 21 for Uni-Select.

“We are excited to welcome a well-established family-owned business with strong regional roots and a shared commitment to our core values and quality service,” said Emilie Gaudet, Uni-Select’s president and chief operating officer. “This acquisition is a testament to our robust growth strategy and our dedication to maintaining the legacy of businesses we proudly incorporate into our family.”

Sponsorship

Uni-Select also announced last week that its flagship brand Bumper to Bumper will be a major sponsor with the Saskatchewan Roughriders of the Canadian Football League.

The Bumper to Bumper logo will be prominently featured on the right-chest jersey patch of all four of the team’s jerseys.

“We are extremely excited to partner with the Roughriders and have our brand woven into the fabric of Saskatchewan’s team,” Gaudet said. “We know how well-respected the team is across the Canadian Football League. And we are thrilled to become a part of Rider Nation!”

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Gilbert Supply Company is now part of Uni-Select, expanding the company’s presence in British Columbia.

Started in 1982, Gilbert has expanded to five locations in B.C.’s Okanagan Region with 70 employees, which Uni-Select’s announcement pointed out as “the backbone of its success.” Uni-Select highlighted the distributor’s growth as a family-owned company, becoming known for its top-notch customer service and ties to the community.

“From the outset, our interactions with Uni-Select and Bumper to Bumper have been characterized by profound mutual respect and a spirit of collaboration. This partnership feels like a natural progression, promising a bright and prosperous future for our teams and the communities we serve,” said Trevor Gilbert, president of Gilbert Supply Company.

Its locations are in Vernon, Kamloops, Merritt, Salmon Arm and Armstrong. The company offers automotive and industrial parts and services.

“We’re thrilled to begin this new venture, merging the heritage of a respected family business with our corporation’s reach,” said Émilie Gaudet, president and chief operating officer of Uni-Select. “This acquisition is more than a business transaction; it represents a blending of mutual values and visions, aimed at elevating our service quality and community involvement to new levels.”

Gilbert acquired two locations in the region from West-Can Auto Parts in 2019. The Vernon, Kamloops and Merritt locations were rebranded as Bumper to Bumper locations at that time.

‘’With this transaction, we are committed to uphold our dedication to quality and service excellence, while leveraging this synergy to enhance our collective capabilities, ensuring we continue to meet and exceed the expectations of our valued customers,” Gaudet added.

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Automotive aftermarket software and financial software company Vehlo announced it acquired Shop-Ware, a cloud-based management platform designed for independent automotive repair shops.

The company plans to add Shop-Ware’s technology to its other product offerings. Its brand offerings include Shop Boss, Autoshop Solutions, 360 Payments and more. Shop-Ware offers an interface for customer communication to add to a shop’s service quality and customer satisfaction.

Vehlo CEO Michelle Fischer praised Shop-Ware’s dedication to advancing the automotive repair community.

“Shop-Ware is a great addition to Vehlo’s suite of shop management solutions and aligns with our mission to be the automotive repair industry’s favorite technology partner, delivering a compelling return on investment with features loved by shop customers, shop owners, and technicians,” she said

Shop-Ware was founded in 2013 by Carolyn Coquillette out of her own San Francisco repair shop to meet the growing demand for transparency and efficiency in the repair process.

“From brand equity to technical leadership, I am very proud of Shop-Ware and everything we’ve accomplished to reach this incredible milestone,” she said in a statement.

Coquillette will join Vehlo’s aftermarket leadership team.

“This alliance allows us to harness the sought-after partner synergies underlying this industry to foster the long-overdue digital transformation,” she added. “Via this acquisition, Vehlo will scale its influence and market share, and we are thrilled to work together across the portfolio of outstanding companies and people to accelerate our cumulative growth even further.”

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Atlantic Canada’s Coast Tire & Auto Service and Andy’s Tire Group announced they will merge next month.

The joint operation will bring Coast Tire’s 26 commercial and consumer tire and auto retail locations, a commercial retreading plant and wheel refinishing facility together with Andy Tire’s 20 stores, three distribution centres and two retreading plants in the Maritimes, effective March 1.

Andy’s Tire Group operates under the banners of Andy’s Tire Shop, Scotia Tire Service, A-1 Tires, Miller Tirecraft and Fleet Retreading.

In an announcement posted to LinkedIn, the new group — which didn’t note a combined name for the entity — noted the importance of both companies remaining locally owned and operated while expanding each other’s reach.

“We are thrilled to bring together these storied companies. This merger is more than a business decision; it’s a strategic move to create the best commercial tire and automotive service network across Atlantic Canada,” said Andrew Pye, CEO of the new business. “Our combined resources, expertise, and commitment to the Atlantic community will allow us to serve our customers even better.”

The announcement went on to note that the process of bringing together the two sides “will be measured and deliberate, ensuring that the integration of the two companies is as seamless and effective as possible.”

The goal throughout the process is to maintain and enhance service delivery and support for their customers without interruption.

There was no mention made of executive changes. Pye served as president of Andy’s Tire. Terms of the deal were also not disclosed.

According to Modern Tire Dealer, Coast became fully independent in February 2022 after acquiring 49 per cent of its shares from Goodyear Tire & Rubber Co.

Coast has been in business for more than 30 years while Andy’s Tire was established more than 70 years ago.

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After a flurry of activity in 2023, what other deals could be in store for 2024 in the Canadian automotive aftermarket?

Canada saw a pair of distributor giants announce their sales in 2023 with LKQ’s acquisition of Uni-Select and O’Reilly Automotive announcing in December that it plans to close its deal with the parent company of Vast-Auto this month.

Elsewhere, Auto Parts Central and Central Canada Industries joined Uni-Select. The parent company of Worldpac and Carquest is looking into selling both those companies.

What should we expect in 2024? While discussing the Vast-O’Reilly deal, the question was put to three aftermarket experts.

They pointed to a variety of possibilities. Joe Mercanti, retired industry veteran, initially thought that Carquest would be a natural target for O’Reilly before hearing about its acquisition of Vast-Auto.

However, he noted, O’Reilly may eye the other Auto Value members as part of a nationwide expansion. Vast-Auto was part of the Auto Value buying group under the Automotive Aftermarket Parts Alliance.

Meanwhile, an industry source who was granted anonymity in order to speak freely, urged people to keep an eye on LKQ.

“I suspect it will be decision time at some point specific to their automotive group, as they focus in on the [paint, body and equipment] sectors, which is their strength,” the anonymous source said. “Cracks starting to show now with their independent membership.”

“With Advance and NAPA and now O’Reilly, all the big three have some footprint over here. So, who knows, maybe next up is AutoZone.”

A natural thought might be AutoZone moving into the Canadian market next now that its competitors have moved north of the border, even as Advance looks to sell Carquest, observed Kumar Saha, U.S. vice president and Canadian managing director of global automotive data firm Eucon.

“So who remains? AutoZone, who doesn’t really have any kind of a presence in the market,” he said in an interview. “With Advance and NAPA and now O’Reilly, all the big three have some footprint over here. So, who knows, maybe next up is AutoZone.

As you look across the Canadian aftermarket landscape, keep an eye on distributors that have aging ownership — what are their plans and with which companies do they fit best, the source wondered.

Furthermore, he noted, look for NAPA, Modern Sales, Monaco Gorup and Bestbuy to pick up members that don’t fit within the O’Reilly platform. They will be the winners.

And what of Worldpac? The folks we talked to were divided.

“I also believe Advance will have a tough time selling Worldpac, as they are up for all of North America, not just Canada,” the source told Auto Service World.

Mercanti, on the other hand, told Auto Service World that he believes Worldpac will be picked up quickly and from a non-industry player. He was a national sales manager with the distributor until his retirement in 2021.

“In a year, it will be bought, and it will be bought by an equity firm. This is my opinion. And the reason being because it makes money,” Mercanti said. “It’ll surprise me if a competitor buys them but I don’t think so. I think that no competitor has the deep pockets as you’re going to need to do that.”

On the cost to acquire, the anonymous source agrees.

“Other network groups probably cannot afford Worldpac, except LKQ,” they said. “Which, if that happened, could solidify their position in parts; as opposed to PBE and crash parts.”

“They’re going to get the best bang for the buck from Worldpac and bring in a lot of cash. That’s what Advance needs.”

Mercanti and the source agreed that Carquest will be a separate transaction from Worldpac.

“And, for a long shot, don’t count [Canadian Tire] out of the Carquest purchase,” the source said. “Their auto repair sector has been sliding for years now (except for tires and batteries) for a number of reasons, and PartSource is stagnant. I suspect they are also noodling their aftermarket strategy these days.”

Or, perhaps as Mercanti observed, its parent company, Advance Auto Parts, may decide to hang on to Carquest.

“They might even keep it,” he said. “They’re going to get the best bang for the buck from Worldpac and bring in a lot of cash. That’s what Advance needs.”

Nevertheless, expect more moves. “It’s kind of hard to say what the future holds,” Saha said, “But I think we will start to see more consolidation.”

And with more consolidation, the pressure goes up on suppliers, Saha noted.

“When consolidation happens in the market, I think the biggest challenges faced by suppliers because they feel pressure to keep their costs low and there’s more bargaining power,” Saha observed. “I think within Canada, there was slightly more bargaining power in the market for suppliers. But if consolidation starts to keep pace at this way, then that could be an issue for some suppliers down the road.”

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2023 finished off with some major news: O’Reilly Automotive announced it had acquired Groupe Del Vasto, which operates Vast-Auto Distribution.

We spoke to a few industry experts about the implications of the deal. One of them was Kumar Saha, a columnist with Jobber News and the U.S. vice president and Canadian managing director of global automotive data firm Eucon. He’s also a frequent commentator for the automotive aftermarket, speaking at conferences about the state of the industry.

Saha took some time to chat about what this deal means for the industry in Canada, how O’Reilly’s split retail-wholesale structure would mesh with Vast, the loss of Canadian-owned aftermarket companies, M&A landscape going forward and more.

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The news that the Del Vasto family will sell their business to a U.S. giant has the Canadian automotive aftermarket talking.

On Monday, O’Reilly Automotive announced it had agreed with Groupe Del Vasto shareholders to buy all of the company’s shares and its affiliated entities

The move hasn’t surprised many in the Canadian auto care space.

O’Reilly has been expanding outside of the U.S., particularly into Latin America, noted Kumar Saha, U.S. vice president and Canadian managing director of global automotive data firm Eucon.

“The northward expansion also make sense,” he said “So not surprised. But it’s very interesting news.”

“I think it’s a brilliant move,” said Joe Mercanti, a long-time industry executive and now AIA Canada ambassador.

He pointed out that O’Reilly was also an Auto Value member, so the leadership of both companies ties back to that relationship.

One industry expert zeroed in on Vast-Auto president and CEO Mauro Cifelli’s statement about accelerating “our expansion throughout Canada.” That points to national aspirations, one that will receive a significant boost through the deal.

“If I had a crystal ball, I could foresee Del Vasto Group taking their O’Reilly lottery winnings and purchasing the Carquest-only entity, with a future promise from O’Reilly’s and possibly additional financial support to absorb the entity,” an anonymous source told Auto Service World. He was granted anonymity due to relationships in the industry and the ability to speak freely.

O’Reilly was founded in 1957 and is one of the biggest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the U.S. It serves both the do-it-yourself and professional service provider markets.

This is something that differs from Vast-Auto’s way of doing business, which is primarily wholesale.

“The current Vast platform does not fit O’Reilly’s platform as O’Reilly’s is more of a Lordco-type business — all corporate stores with a near 50-50 split retail/wholesale base,” the anonymous source said.

This is something Saha pointed to as well, a similar position NAPA was in when it acquired UAP. He wondered if O’Reilly would push for more retail focus once the deal is complete. “The Canadian market … is also very, very traditional. It doesn’t truly have a retail-oriented market as they have in the U.S.”

“The entry into Canada via Vast is just a springboard which will change the face of our current aftermarket.”

Springboard to Canada

Many American companies view Canada as a viable expansion opportunity, even if it’s one-tenth of its size. However, for many, Quebec is an issue — a different market with different rules, a different language and a different way of doing things.

“To get into Canada, for a U.S. company, the problem’s always been Quebec,” Mercanti told Auto Service World. “So buying a Quebec company, that gives you the base. And then you can grow west easier.”

Like Vast-Auto, UAP and Uni-Select are headquartered in Quebec.

“The entry into Canada via Vast is just a springboard which will change the face of our current aftermarket,” the anonymous source said. He also noted that many industry experts believe there’s only room for upwards of four major buying groups. So acquisition makes more sense than expanding into the country — but it could also signal further deals down the road.

“For a U.S. company, they need to enter via a traditional network,” he added. “And with Vast’s vision — perfect.”

Saha pointed to Target’s attempt to move into the Canadian market.

“There are always risks associated with expanding into the Canadian market and trying to set up their own footprint,” he noted. “This is a great way because you have an existing business and you have the relationships in the market.”

“We have a smaller footprint. The entire aftermarket business is now built on scale. And a lot of them are family-owned. Sometimes it just makes sense for the company to make the right deal.”

Loss of the Canadian touch?

So it’s another Canadian company being acquired by a U.S. firm.

“I guess it’s just the way things are going,” Saha said. “I mean, if you take the example of LKQ-Uni-Select and now this, I don’t think it’s surprising at all that some of the bigger retailers and entities that are in the U.S. and now want to flex their muscle across the Americas.”

Except for B.C.-based Lordco, all Canadian networks in Canada have ties to a U.S.-based buying group now.

“Lots of things up in the air for you to watch, but do know this: The aftermarket in Canada will have a face change in the next three to five years,” the anonymous source said.

But does it matter that these once-powerful Canadian brands are now American-owned? Mercanti doesn’t think so.

“I don’t think it matters. They were all related to a buying group that was U.S.-based,” he said, echoing the anonymous source’s point on the pre-existing U.S. relationships. “As long as you give a good product and good service, you’ll be OK.”

And it’s probably inevitable that more U.S. companies will find their way north of the border as Canadian companies don’t have the capacity to expand their footprint on their own.

“We have a smaller footprint. The entire aftermarket business is now built on scale,” Saha observed. “And a lot of them are family-owned. Sometimes it just makes sense for the company to make the right deal.”

And these acquisitions won’t stop any time soon. “Consolidation is part of [the business],” Mercanti said. It’s going to be interesting. It’s going to be really interesting to see what happens in the next couple of years.”

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Another Canadian automotive aftermarket distributor has been sold to an American company.

O’Reilly Automotive, based in Springfield, Missouri, announced yesterday that it had acquired Montreal’s Groupe Del Vasto, which operates as Vast-Auto Distribution.

O’Reilly agreed to a stock purchase agreement with shareholders and will acquire all of the outstanding shares of Groupe Del Vasto and its affiliated entities.

The stock purchase is expected to be completed in January 2024, subject to customary closing conditions and regulatory approvals. It will be O’Reilly’s first foray into Canada.

Beckham, O’Reilly co-president confirmed that the current management team — led by president and CEO Mauro Cifelli — will remain in place

“We are excited to announce our purchase agreement with Vast-Auto, a highly respected, family-owned and operated auto parts supplier in Canada,” said Greg Johnson, O’Reilly’s chief executive officer. “From their beginning more than 35 years ago, Vast-Auto has built a very successful business by focusing on the same fundamental culture values of hard work and excellent customer service that have also been key to O’Reilly’s success. This strategic acquisition represents another important milestone in O’Reilly’s rich history, as we extend our footprint into Canada and continue our long track record of profitable growth throughout North America.”

Vast-Auto has a pair of distribution centers and six satellite warehouses as part of its network of 23 company-owned stores and hundreds of strategic independent partners. It provides widespread service that extends to thousands of other independent jobber and professional customers across Eastern Canada.

“This is a significant milestone and fantastic opportunity for Vast-Auto and will be a catalyst to accelerate our expansion throughout Canada,” Cifelli said. “Our company has always been committed to a strong culture, hard work, and exceptional customer service and these values align perfectly with O’Reilly’s culture. We recognize the unique contributions that each company brings to the table and are excited to become a part of the O’Reilly family.”

Founder and chairman John Del Vasto began his career as a technician and owned a service station and an auto parts store. “Our number one priority was finding the right long-term partner to safeguard the legacy of Vast-Auto,” he said. “O’Reilly has a very similar heritage to our company, and we know that our entire team will thrive under the ownership of O’Reilly far into the future we build together.”

Del Vasto and his wife Lucy recently became lifetime trustees of the University of the Aftermarket Foundation.

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Epico announced it has acquired Elite Extra, a cloud-based last-mile delivery solutions provider.

The deal, it said in an announcement, expands its ability to help customers across the make, move and sell industries simplify last-mile logistics and compete in a hyper-competitive market more effectively.

Financial terms were not disclosed. The acquisition will complement and strengthen Epicor’s ability to optimize last mile logistics and solve supply chain challenges for customers across Epicor’s vertical industries.

“Getting the right parts and products to the right place at the right time is essential in today’s marketplace. More and more, it’s all about make, move, sell and deliver,” said Epicor’s CEO Steve Murphy. “We are thrilled to welcome Elite EXTRA as part of the Epicor team, adding advanced last-mile delivery capabilities to help our customers simplify, streamline, and strengthen their logistics operations.”

With Elite Extra, Epicor’s automotive aftermarket customers will gain deeper real-time visibility to make more informed routing, dispatch, and inventory decisions. This will help distributors, independent service shops, and dealers improve efficiency, reduce costs, and deliver a superior customer experience that builds loyalty and creates a competitive advantage.

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From left, Jimmy Lea, Cecil Bullard, Michael Herzburg Smith and Kent Bullard

The Institute for Automotive Business Excellence announced a merger Herzberg Smith & Co.

Michael Herzburg Smith will join, Jimmy Lea as part of the institute leadership’s team as the chief strategy officer. He will spearhead the company’s expansion programs, fostering client high performance, facilitating strategic growth and orchestrating succession plans.

Herzburg Smith has built numerous businesses and supported clients for 42 years across more than 40 different industry verticals. The announcement explained that he “was asked to bring his extensive knowledge base first to advise a leading automotive service company seven years ago, and his team has since focused exclusively on accelerating top independent auto service companies.”

“We are excited to welcome Michael to our team and believe his expertise will be instrumental in our mission to elevate the automotive industry,” said Cecil Bullard, president and CEO of the institute. “His appointment underscores our commitment to providing our members with the highest level of support and strategic guidance as they strive for excellence in this rapidly evolving world of ours.”

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Advance Auto Parts announced it is beginning the process of looking into spinning off its Worldpac division and its Canadian business under the Carquest banner.

The announcement came as the company has decided to focus on a “blended box business model” as it also looks into a new cost reduction program. In its third-quarter financial report, it said the move the company could see at least $150 million in savings annually through the plan.

Shane O’Kelly, who took the reins as president and CEO from Tom Greco two months ago, said he’s been working with the board and management in reviewing the business.

Advance has started a sale process that could lead to the company parting with Worldpac and Carquest, under which Advance’s goes to market in Canada.

Centreview Partners is working with Advance on the sale process. No timetable was given nor was a deadline for any potential sale. Advance also doesn’t intend to comment or give any updates on the possible sale unless they reach a conclusion or further updates are warranted.

Earlier this year, Worlpac and Carquest opened up a shared distribution centre north of Toronto. The 580,000-square-foot facility can house 350,000 automotive parts.

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Four Greater Toronto Area automotive repair and tire shops plus one in Guelph have been acquired by The Mufflerman.

The five locations are under the EuroMechanic banner, specializing in repair, service and tires for European vehicles. They are co-branded with individual names: Bloor West Auto in Mississauga, McDermott Motors in Toronto, McNally Auto in North York, Redline Automotive in Scarborough and Brock Road Garage in Guelph.

The deal closed on November 3 and was announced Nov. 14. The EuroMechanic brand, previously owned by private-equity firm Carflex Capital, will operate as a separate division of The Mufflerman.

EuroMechanic’s business model was attractive to The Mufflerman thanks to its operations and similarity in the way the company engages with employees and serves customers, said Costa Haitas, The Mufflerman president.

“The combination of EuroMechanic’s scale and niche expertise combined with our supplier and vendor relationships, will provide customers with even greater savings, options and service,” he added in a statement. “We are excited about adding these amazing locations to our network, some of which have been around for 40 years.”

The Mufflerman network now consists of 28 locations with 18 of them corporate-owned, through three brands: The Mufflerman, EuroMechanic and Fleet Specialties. There are also 10 franchised locations under the Superior Tire & Auto brand.

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It’s a healthy market for mergers and acquisitions, according to a new report that examined deals that have recently taken place in the United States.

The U.S. automotive aftermarket is witnessing robust demand due to an aging car fleet, more miles being travelled and increasing vehicle complexity — all making deals more attractive to prospective buyers, said Capstone Partners’ automotive aftermarket sector update for October.

Rising borrowing costs and vehicle prices are pushing many consumers away from buying new vehicles, driving average age in the U.S. to 12.5 years. This trend has boosted the demand for non-discretionary aftermarket parts and services. Furthermore, vehicles more than a decade old are anticipated to make up 42.5 per cent of aftermarket spending, dwarfing the 24.8 per cent share from vehicles less than five years old, according to MEMA Aftermarket Suppliers.

The Auto Care Association reported that the U.S. industry’s value is expected to climb to $497.4 billion in 2023, 5 per cent more than last year.

Another factor: As cars evolve technologically, consumers increasingly prefer professional services (DIFM), further boosting aftermarket subsectors.

Despite broader economic challenges, the crucial nature of aftermarket services ensures steady revenue for industry players, Capstone observed. It highlighted companies like Boyd Group Services and Driven Brands as seeing sales surges of 23 per cent and 19 per cent, respectively, year over year. Boyd Group added 57 collision repair centers in 2023’s first half.

As 2024 approaches, Capstone predicted aftermarket service demand to remain robust, while noting significant M&A interest in high-quality aftermarket service providers.

The group noted 230 deals up to October 2023. While that’s down from 418 in all of 2021, 393 in all of 2022 and 310 at the same point last year, “sector deal volume is expected to accelerate in the coming quarters and through 2024 as broader M&A markets emerge from a relative trough in dealmaking,” the report said.

“While high-quality retailers, distributors, and parts suppliers have captured healthy buyer appetite, targets in the services segment have witnessed significant strategic and private equity interest. As supply chains have normalized and demand has remained robust, prospective sellers with recurring revenue, a sticky customer base, and defensible gross margins are poised to generate the greatest buyer attention.”

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Shop owners looking to grow need to do their homework. A pair of coaches offered some expertise on what to think about during the process at a recent training event.

They need to figure out what kind of shop they want, such as specializations, what part of the city or region they want to be in, will they keep the same brand and more.

And don’t forget to look at the human capital in the shop, advised Greg Bunch, a speaker trainer with Transformers Institute, and multi-shop owner. The shop may have a husband and wife team running the business. After you buy, you’ll need to hire two people to take on those roles, so your cost of acquisition goes up.

Check in on the status of the technicians. Are they older, nearing retirement age? Or will you have techs working for you for many years?

Don’t forget, if staff catch the scent that the shop is for sale, they may fix up their resumes and look for new jobs. So you want to put in a strategy to retain the staff in place, Bunch said.

The shop’s reputation will be important to consider as well. Do you want to keep the name or do you want it under the same brand as your current shop? Some customers may be more comfortable with the feeling of walking into ABC Automotive because it has the feel of a family-owned shop. It may be part of a multi-shop operation but because it operates under a different name or the pre-acquisition name, customers don’t realize it.

Or do you just want the building, clear everything and everyone out and start from scratch?

“I would suggest that if you’re going to spend money for a business, make sure it’s got some good stuff that’s going to come along with it,” Bunch recommended at the Midwest Auto Care Alliance Vision Hi-Tech Training and Expo during the session Executing Successful Acquisitions.

If you have a shop that does general repair, do you want to take on a specialty shop, or vice versa?

“I have a lot of clients that own general repair and they want to subsidize that with a Euro shop because they’re turning away Euros. And I got Euro shops that are now opening general repair shops to go back and forth,” Bunch said. “They’re like, ‘Hey, for everybody that owns a BMW, you know that you got to have a spare car, right? And it better not be another BMW. And so they want to capture both [of those] markets, but they don’t want to pollute their parking lot by putting a poor little Toyota Camry next to their Mercedes.”

Another consideration is distance. How far apart should your shops be from each other?

Troy Kaplan, a senior consultant with Transformers Institute and owner of TGK Automotive, which has more than 20 locations, at first looked to keep shops about 10 km apart from each other. But he changed his thinking from a fixed distance to looking at drive time, to about 10-15 minutes.

Keep in mind the natural divisions in a city. Maybe there’s a bridge or river that separates one part from the other, so it’s OK to be a little closer because people may not travel to other parts of the city.

“If we can make it a shorter drive time from their house to or from their work was our goal,” Kaplan said.

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Auto Parts Central won the Jobber of the Year Award in 2008

An award-winning network of central Canadian jobbers plus its supplier parent company have been acquired by Uni-Select.

Auto Parts Central and Central Canada Industries, both owned by Wayne Maunula with presence in Ontario, Manitoba and Saskatchewan, are now part of the Uni-Select fold.

Maunula won the Jobber News Jobber of the Year Award in 2008.

The company called the acquisition “a strategic transaction aimed at expanding the company’s footprint” across the three provinces.

Central Canada Industries opened its doors 32 years ago. Its core products included hydraulic hose and couplings, lifting and rigging, traction chain, pneumatics, fleet oil and greases. Two years later, it launched Auto Parts Central in Thunder Bay, Ontario.

“Wayne’s partner, Marvin Maunula, thought auto parts would be a good idea to add to our mix so we joined the Uni-Select buying group,” the Auto Parts Central website says.

The jobber has 14 locations stretching from Thunder Bay to Moose Jaw, Saskatchewan. “Our customer relationships are what separates us from competitors,” the company says. “We are a locally operated auto parts distributor that prides itself on the relationships we’ve built with the most trusted automotive service providers and DIY technicians in every city we’re located in.”

In winning the Jobber of the Year Award, Maunula said, “I run this a little different from many traditional businesses,” while crediting the hard work of his staff.

“Our staff is really the people who make the business work. I have only been in the automotive business for 15 years, and never worked on the counter or as a driver or in sales,” he said in 2008.

Being so spread out geographically requires effective teams.

“I think that goes back to having our managers deal with their local markets and their customers,” Maunula said. “And, if there is a positive impression of our business, it is because of their attitude and work. It’s not just Wayne in Thunder Bay.”

Auto Parts Central and Central Canada Industries “has consistently demonstrated growth, a testament to the business’ quality of customer service and active community engagement,” Uni-Select’s announcement said.

“We are truly honoured to carry forward the Maunula family’s legacy, driven by our commitment to delivering excellence in both products and service to support the growth and performance of our customers.” Emilie Gaudet, president and chief operating officer of Uni-Select said in a statement.

Central Canada Industries started off in the forestry and the pulp mill industry and now also works in the mining and construction industry.

“The Uni-Select leadership has been supportive throughout our collaboration,” Maunula said in the announcement. “Our relationship has been built on mutual respect and cooperation, making me confident that joining the corporate store group is the logical step for our future.’’

This is Uni-Select’s first announced acquisition since it was bought by LKQ.

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A trio of jobber stores are being added to the Vast-Auto network.

Vast-Auto Distribution announced that it entered into an agreement to acquire all assets of Pièces d’Autos Victo and Freins Démarreurs Plessis, as well as the shares of Pièces d’Autos Thetford.

Vast-Auto is a subsidiary Groupe Del Vasto and is a shareholder of the Aftermarket Auto Parts Alliance.

The three are located in south-central Quebec, about midway between Montreal and Quebec City. Pièces d’Autos Victo is in Victoriaville, Freins Demarreurs Plessis is in Plessisville and Pièces d’Autos Thetford is in Thetford Mines.

The automotive parts wholesaler and retailer automotive parts wholesaler and retailer was founded in 2008 by Normand Roy.

His sons, Jordan and Raphaël, will continue to manage the operations as assistant managers at the Victoriaville and Plessisville stores, respectively. Nicolas Lévesque will continue as manager at the Thetford Mines location.

An announcement highlighted the company’s commitment to “serving professional service centers through a wide product assortment and an exceptionally qualified staff of parts specialists.”

Roy noted the common vision Vast-Auto has with him.

“We have always worked hard to ensure we achieve the highest level of customer satisfaction by offering a vast inventory of high-quality parts with a strong focus on service,” he said in the announcement. “Groupe Del Vasto has clearly established itself as a leading Canadian distributor within the automotive aftermarket and I know they are the best choice for the future of my business, loyal customers, and dedicated employees. I am confident that Groupe Del Vasto will continue to build on our success.”

The deal aligns with Groupe Del Vasto’s long-term growth plans as it expands its footprint in Eastern Canada, said Mauro Cifelli, the company’s president and CEO.

“We value Mr. Roy’s trust and are honoured by his decision to move forward with Groupe Del Vasto,” he said. “His continued involvement in managing the business will ensure a seamless transition and we are committed to maintaining the relationship established with his employees, and ensure customers continue to receive the best-in-class service that they have been accustomed to.”

Roy noted how proud he was of what has been built.

“Pride is the word that best expresses how I feel today,” he said. “We’ve all worked very hard, and today we have customers who really have confidence in us.”

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It’s now official: Quebec-based Uni-Select has been acquired by Chicago-based LKQ Corporation.

News of the deal first sprouted in late February. After getting regulatory and shareholder clearance, as well as LKQ waiving some conditions, the deal was completed under the provisions of the Business Corporations Act (Québec).

As outlined from the start, LKQ will buy all of Uni-Select’s issued and outstanding shares for $48 per share in cash, valuing the transaction at about CAN$2.8 billion.

Former shareholders will be paid out “as soon as reasonably practicable after the date hereof” or after other steps are completed, in the case of registered shareholders.

LKQ provides alternative and specialty parts to repair and accessorize vehicles. Uni-Select distributes automotive aftermarket parts and automotive refinishing products in Canada under the Bumper to Bumper, Auto Parts Plus and FinishMaster banners.

In the U.K., Uni-Select, distributes automotive parts through GSF Car Parts, though LKQ has stated it will sell off the division.

The deal was looking at delays following the U.K. Competition and Markets Authority’s request for a remedy (known as “undertakings in lieu of reference”). The regulator made the request to address concerns it has identified about the impact on markets in the United Kingdom.

Just before the weekend, Uni-Select announced that LKQ was formally waiving the closing condition relating to gaining merger clearance in the U.K. That being the final hurdle, all closing conditions were either satisfied or waived, opening the door to officially closing the deal.

Shareholders gave the deal the go-ahead in May.

Now that the deal is complete, Uni-Select will be de-listed from the Toronto Stock Exchange and Uni-Select has applied to cease to be a reporting issuer in all Canadian provinces.

“We look forward to welcoming Uni-Select’s employees to the LKQ team,” said LKQ president and CEO Dominick Zarcone when the deal was first announced. “Importantly, we believe that our combined efforts will create tremendous long-term value for our customers, shareholders, employees, and other stakeholders as we continue to focus on our operational excellence initiatives.”

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Kal Tire announced it has acquired Ottawa’s Frisby Tire, one of the oldest independently-owned tire dealers in Canada.

The deal closed on May 27. Kal Tire will operate Frisby Tire’s five retail and commercial stores. Kal Tire’s subsidiary, Total Tire Distributors, will acquire Frisby’s existing wholesale operations.

Frisby Tire dates back to 1920. Don Frisby became the third-generation leader of the business in 1995.

“It’s always been so important to us that our customers are happy with their experience, and we feel very fortunate to know that will only continue with Kal Tire’s culture of service-oriented values,” said Frisby. “Some of our technicians have worked here their whole lives. We’ve built this legacy together and I know they’re all in the very best hands.”

The 52-member team of Frisby Tire will join Kal Tire as the company operates Frisby Tire stores on Industrial Avenue, Somerset Street West, Queensdale Avenue, Clyde Avenue and Hazeldean Road in Ottawa.

New, branded Kal Tire signage will be installed in the coming weeks. The company now operates more than 260 stores across Canada.

Frisby Tire’s warehouse and wholesale distribution facility at Humber Place in Ottawa and 26 team members will be operated by the Total Tire team.

“Since our early days, Kal Tire has looked for opportunities to grow by considering well-run businesses that have dedicated team members who strive to provide customers with an exceptional level of service,” said Robert Foord, president of Kal Tire. “We know from our long-standing relationship that Frisby Tire has all of those attributes, and we’re pleased to link our teams and capabilities and join the community they’ve built in Ottawa.”

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Uni-Select recently announced that its shareholders gave the thumbs up to the sale of the company to LKQ Corporation.

A special meeting of shareholders saw the resolution approved by nearly 99 per cent of votes cast by shareholders present virtually or represented by proxy and entitled to vote at the meeting.

The deal was announced at the end of February and will see Chicago-based LKQ will buy all of Boucherville, Quebec-based Uni-Select’s issued and outstanding shares for $48 per share in cash, valuing the transaction at about CAN$2.8 billion.

The agreement also includes Uni-Select’s U.K. auto parts distribution business GSF Car Parts with more than 175 company-operated stores. LKQ has noted it will look to part with the business following its acquisition.

The arrangement is expected to close in the second half of this year. It remains subject to certain closing conditions, including the issuance of a final order by the Superior Court of Québec and receipt of applicable regulatory approvals, consisting of approval under the Canadian Competition Act and the Investment Canada Act, approval under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and clearance by the U.K. Competition and Markets Authority.

First quarter results

Uni-Select reported nearly 10 per cent growth in its consolidated sales in the first quarter of 2023 when compared to the same time last year. If it weren’t for unfavourable fluctuation from the Canadian dollar and British pound, the company said it would have seen growth of 15 per cent.

Within the Canadian Automotive Group, sales were up 19 per cent when excluding unfavourable fluctuations of the Canadian dollar compared to the first quarter of 2022. Growth, Uni-Select noted, was driven by acquisitions over the last year, representing 9.5 per cent with organic growth of 8.4 per cent, plus a favourable variance in the number of billing days.

Organic growth was driven by price increases, it noted.

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An agreement has been reached for LKQ Corporation to acquire Uni-Select Inc. in an all-cash deal.

LKQ will buy all of Uni-Select’s issued and outstanding shares for $48 per share in cash, valuing the transaction at about CAN$2.8 billion. It is expected to close later this year.

Chicaco-based LKQ is a provider of alternative and specialty parts to repair and accessorize vehicles. Uni-Select distributes automotive aftermarket parts and automotive refinishing products in Canada under the Bumper to Bumper, Auto Parts Plus and FinishMaster banners. It supports more than 16,000 automotive repair and collision repair shops and more than 4,000 shops through its automotive repair/installer shop banners and automotive refinish banners. Its network has more than 1,000 independent customer locations with nearly 100 company-operated stores.

In the United States, Uni-Select’s subsidiary FinishMaster has more than 145 automotive refinish company-operated stores, supporting more than 30,000 customers annually. In the U.K., Uni-Select, distributes automotive parts through GSF Car Parts and has more than 175 company-operated stores. However, LKQ has noted it will look to part with the division.

The announcement highlighted the deal as a “compelling strategic fit” with LKQ president and CEO Dominick Zarcone calling it complimentary to the company’s existing offerings and enhancing its offerings.

“We look forward to welcoming Uni-Select’s employees to the LKQ team. Importantly, we believe that our combined efforts will create tremendous long-term value for our customers, shareholders, employees, and other stakeholders as we continue to focus on our operational excellence initiatives,” he said.

Zarcon added that the deal will allow LKQ to boost its presence in Quebec as Uni-Select’s head office is in Boucherville.

Brian McManus, executive chair and CEO of Uni-Select, said the deal will bring more opportunities to customers, suppliers, employees and brands as the two companies combine their strengths.

“The transaction offers compelling value and liquidity to our shareholders and is the culmination of the efforts by our dedicated team to improve our operations and drive efficiencies with a focus on excellent customer service,” he said in the announcement.

Finer details

The deal is valued at $2.8 billion, including debt. . The $48 per share deal is about a 21 per cent premium over Uni-Select’s average trading price the last three weeks. The announcement highlighted that the transaction will find about US$55 million in cost synergies by the third year after closing, on top of other margin and revenue opportunities.

Uni-Select’s board of directors has unanimously approved the deal and recommends shareholders vote in favour.

It is expected to close in the second half of this year. Clearances will be needed in Canada, the U.S. and U.K., on top of shareholder and court approvals.

For the deal to go through, approval will be needed from two-thirds of votes cast during a special meeting of Uni-Select shareholders and a majority of the votes cast on the Transaction at such meeting.

Upon closing of the deal, LKQ will look to sell the U.K. segment, GSF Car Parts.

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Crowds check out the Ideal Supply Show in Barrie, Ont., in 2018

Wyebridge Machine Limited, run by the MacLennan family in Midland, Ontario, has sold its NAPA franchise to Ideal Supply.

The deal closed on Nov. 4. Ideal Supply announced the acquisition on Nov. 18. Ideal is NAPA’s largest network of franchise stores in Canada, with more than 30 branches throughout southcentral and southwestern Ontario. Its head office is in Listowel.

Wyebridge opened its doors in 1962 with John and Mary MacLennan running operations. The shop stayed in the family with siblings Robert, Ronald, Barry and Anne overseeing the business.

In an announcement from Howie Pruden, Ideal’s vice president and general manager, he noted that “the siblings are quick to credit the success of the business to the great staff they have at the store now and have had over the years.”

He also said the company owes many thanks to its customers who have been loyal to Wyebridge. “Without your business, Wyebridge could not have operated over the years, and they express their pleasure at having been able to serve you,” Pruden said. “We wish them the very best as they transition to the next phase in their lives.”

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Toronto-based Litens Automotive Group announced it has acquired a controlling interest in Spain-based Industrias Dolz SA.

Litens is a global automotive supplier of powertrain system engineering and component supply. Dolz manufactures and distributes automotive water pumps and other powertrain products.

“The addition of the Dolz product line highly compliments our current product offerings allowing our combined companies to offer a wider range of products to each of our customers,” said Litens CEO Paul Robinson. “We are pleased to welcome [CEO] Jesus Dolz and the Dolz team and look forward to working together.”

Though now under the Litens umbrella, Dolz will operate as a separate business. CEO Dolz will continue to lead the company.

“Dolz and Litens both have a long history in the automotive industry,” Jesus Dolz said. “I am excited to continue to lead the Dolz business working with the Litens team to grow the business by providing our customers with the best products and services”.

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Money and reduced physical barriers are the combinations that will see continued merger and acquisition activity, according to a long-time automotive aftermarket leader.

The number of independent suppliers has dwindled in recent years with many brands now falling under one major company. But these days, it’ll be even easier to put deals together thanks to increased electronic communication, said John Washbish, president and chief executive officer of the Aftermarket Auto Parts Alliance.

Virtual meetings are fairly normal these days, boosted by the necessity to do so during the COVID-19 pandemic. Company headquarters are less important than they used to be with many employers opting for hybrid and more remote working options for staff.

“So it’s much easier to put companies together than it was before,” he said during an episode of Curbside Chat, the video podcast series from the Automotive Industries Association of Canada.

The second reason is there’s a lot of money sitting on the sidelines. Companies and investors are itching to put it to use. They see the strong financial results of the automotive aftermarket and they want in.

“So you’re going to continue to see aftermarket consolidation happen, just because there’s a lot of money, and there’s a lot of old people, and the money ready to buy out the old people,” Washbish told Bob Jaworski, past chair of AIA Canada, who hosted the episode. “That’s going to happen.”

Even on the automaker side, Washbish predicted plenty of consolidation as electric vehicles take hold even if they’re many years away from making a dent in the overall car parc.

He still sees another decade or two where those in the internal combustion engine space will still be busy.

“But I see a lot of people saying. ‘I’m scared of that. I want to get out of that,’” Washbish said. “I can see you get rolled up by some of the big companies that are smart enough to know there’s got to be a lot of money to be made on ICE engines over the next 15-20 years on the OE side.”

But there’s also the other side of the equation that’s going after the EV business who are lining themselves up for the new opportunities.

“So the consolidation in the aftermarket is definitely going to continue on those manufacturing companies. On the OE side, look for the ICE engine consolidation, and then look for those people that are interested in going after the electric,” Washbish said.

The post Why consolidation won’t slow down appeared first on Auto Service World.

Uni-Select is acquiring a major aftermarket player in northern Ontario.

The Boucherville, Quebec-based company announced this week that it has entered into a definitive agreement to acquire Maslack Supply Limited, plus its related real properties.

Maslack, the Jobber of the Year in 1994-95, has 13 locations across northern Ontario, a 70,000 sq. ft. distribution centre and more than 200 employees. Uni-Select’s announcement noted that Maslack reported $52 million dollars of revenue for its fiscal year that ended January 31, 2022.

The core management of Maslack will remain in place following the deal, Uni-Select said.

The deal comes almost a year after the passing of its founder, John Maslack. He founded Maslack Supply in 1959 with three employees and a 500 sq. ft. building.

“We are pleased that Uni-Select, a Canadian company built on the same entrepreneurial foundations as Maslack, is acquiring our family business and carrying on the legacy of our parents in offering excellent service to our customers throughout Ontario,” said Betty Jane Marks and Judy Roy, John’s daughters, in the announcement. “Uni-Select emerged as the obvious buyer because of our shared customer-first approach and appreciation for employees, which are the front line of our business.”

The deal represents the biggest significant acquisition for Uni-Select since the company began its turnaround in the second quarter of 2021, observed Brian McManus, executive chair and chief executive officer, Uni-Select Inc.

“The transaction represents a meaningful growth avenue for the Canadian Automotive Group and is evidence of our ability to leverage our solid and improving balance sheet to make sizeable investments to grow our business,” he said.

“We are honoured to carry on the legacy of the Maslack family and happy to expand our footprint in Ontario — Canada’s largest market for automotive aftermarket products,” Emilie Gaudet, president and chief operating officer of the Canadian Automotive Group, added in the announcement. “We look forward to welcoming Maslack’s employees to leverage our combined strengths and maintain our high standards and quality of operations.”

The announcement also came days after Pièces d’auto Lacroix joined UAP to become a NAPA associate, switching over from Uni-Select’s Bumper to Bumper banner.

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Image credit: Depositphotos.com

American Tire Distributors’ Canadian subsidiary is set to be acquired by Groupe Touchette.

The two sides announced the agreement on July 13 where Groupe Touchette will take over National Tire Distributors. This, the company said in an announcement, “will significantly contribute to Groupe Touchette’s ability to serve its customers and business partners, bringing enhanced service, increased offering capacity and more choice to Canadian consumers.”

It also noted new job opportunities and the ability to “bolster” its service.

Once the deal closes, Groupe Touchette said it will serve all major manufacturers and supply customers across Canada.

“On behalf of the entire Groupe Touchette team, we are absolutely thrilled to welcome NTD into our growing family,” said Nicolas Touchette and Frédéric Bouthillier, co-owners at Groupe Touchette. “In these challenging times, and in this ever-evolving industry, the environmental and technological realities bring a high complexity on a 360-degree perspective. Groupe Touchette’s plan is to offer powerful solutions that drive efficiencies and streamline the supply chain for the benefit of customers, consumers and manufacturers. NTD’s addition will help us reach our goal to best serve Canadians.”

As part of the agreement, the companies will enter a commercial relationship that will see American Tire Distributors will supply the combined Canadian company with its proprietary Hercules and Ironman brand tires and make its advanced analytics software and productivity-enabling tools available to Groupe Touchette’s network.

The combined business will continue to be headquartered in Montreal and will maintain a national support center in Burlington, Ontario, as well as regional offices across Canada.

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Image credit: Depositphotos.com

After more than half a century as part of the Bestbuy family, Colonial Auto Parts will move under the Uni-Select banner.

Uni-Select made the announcement on May 24 that it had “entered into a strategic agreement” with Colonial Garage & Distributors Limited and its affiliated companies, which includes Colonial Auto Parts. Family-owned for almost 100 years, Colonial supplies automotive aftermarket parts through its 20 locations across Nova Scotia, New Brunswick and Newfoundland and Labrador.

Uni-Select highlighted “Colonial’s strong reputation” and the commitment of its 150 employees who provide a high level of customer service and support.

Colonial marked 55 years with Bestbuy in 2021. Its president Douglas Squires, also a former Bestbuy chairman, noted the opportunity to grow beyond its current landscape as an enticing reason to join Uni-Select.

“With its extensive warehouse network and strong vendor relationships, Uni-Select offers us the scalability we have been missing to expand and grow our business to the next level. We have been thoroughly impressed by the knowledge, professionalism, and flexibility of Uni-Select’s senior leadership team,” Squires said in the announcement.

“After being a shareholder in a competitive network of independent wholesalers for over 55 years, we are excited by the opportunities provided to our group of companies and look forward to a bright and exciting future.”

Colonial first opened as a service and gas station in St. John’s by Gordon Elton in 1926. It imported parts from across Canada for local motorists. His two sons took over the business in the 1950s and opened a body shop and a machine shop, followed by a radiator fabrication facility. It acquired New Brunswick-based A.P.M. Limited in 2006. The business remains in the family today, with majority ownership held by family members Susan Elton Squires, Gillian Elton and Squires.

Colonial’s stores will convert to the Bumper to Bumper banner in Nova Scotia and Newfoundland and Labrador. It will also keep its own identity and name in its local market where it is well known.

Emilie Gaudet, president and chief operating officer of Uni-Select’s Canadian Automotive Group, welcomed Colonial as a new independent member.

“This new and very promising agreement with the Colonial Group, with whom we share the same values, will allow us to consolidate our presence in the Atlantic Provinces and complement our current members in the region,” she said in a statement.

“This partnership with Colonial represents our first agreement with a major independent member in the last decade and represents our commitment to our strategy of building and strengthening relationships with our Canadian members,” noted Brian McManus, executive chair and chief executive officer at Uni-Select Inc.

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Image credit: Depositphotos.com

Sustainable manufacturer BBB Industries announced that has agreed to be acquired by a private equity firm.

Clearlake Capital Group will lead the acquisition and be the majority shareholder in the company. There will also be investments by another private equity company, Genstar Capital and BBB’s management team.

Terms of the deal were not disclosed. The transaction is expected to close later this year pending customary closing conditions

BBB manufactures starters, alternators, hydraulic and air disc brake calipers, hydraulic and electronic power steering products, and turbochargers for the OEM, passenger, industrial, and commercial vehicle aftermarket industries. It does business in 64 countries through 5 divisions with multiple sustainable manufacturing facilities and distribution centers located throughout North America and Europe

2022 has been a year of growth for the company as it has regularly announced its own acquisitions. BBB was awarded the Cornerstone Award from Bestbuy Distributors earlier this month.

“I have long admired Clearlake’s strong record of success and look forward to partnering with the team as we continue the company’s evolution,” said Duncan Gillis, CEO of BBB. “I thank Genstar for their great partnership over these past years and for continuing to demonstrate confidence in BBB with their ongoing investment in the company.”

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3M announced the acquisition of the technology assets of LeanTec, a provider of digital inventory management solutions for the automotive aftermarket in the United States and Canada.

In an announcement, 3M noted the deal shows the company’s commitment to its “connected bodyshop” digital platform. It integrates data capture and analysis with material product platforms to keep pace with emerging needs and trends.

“Businesses across industries are looking for innovative ways to harness the power of digital transformation – and body shop owners are no exception,” said Dave Gunderson, president of 3M automotive aftermarket division. “This acquisition adds new levels of data integration and insights that will allow body shops greater visibility of their business operations, operational efficiency, and a better customer experience.”

The company noted that the acquired technology complements 3M’s RepairStack Performance Solutions, a hardware and software system to ensure materials needed for safe and reliable repairs are available on hand, streamlines the blueprinting and billing process and gives real-time insight into business performance.

Through the deal, 3M said it will be able to deliver a more connected, digital bodyshop solution.

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Plews & Edelmann completed its purchase of Blissfield Manufacturing, a third-generation Tier 1 manufacturer of refrigeration products and condensers.

Plews, which manufacturers power steering components, hoses, automotive fittings and turbo oil lines, also acquired Blissfield’s technology, designs and manufacturing equipment.

The acquisition will give Plews the ability to supply all forms of power steering coolers to the aftermarket and OE service parts distributors, according to CEO Dan Billie

“I am happy that Blissfield Manufacturing’s chairman, Pat Farver, chose Plews & Edelmann as the caretaker of his family business. This acquisition complements our vision and is a perfect fit for the company as we continue to focus on providing the aftermarket with a total solution to its power steering needs,” he added in the announcement.

A new power steering cooler program is now part of the Edelmann Elite power steering portfolio following the deal.

Image credit: Depositphotos.com

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Remanufacturer BBB Industries announced last week that it had acquired two Europe-based aftermarket parts manufacturers and distributors.

Rubber and rubber-to-metal aftermarket distributor FARE Automotive and automotive parts distributor BBF — better known as Redline Auto Parts — were acquired in their entirety, according to BBB.

Fare has spent 35 years serving the aftermarket with about 12,000 catalogued part numbers in the rubber, metal, and rubber-to-metal product segments. With 40 years in the automotive aftermarket, Redline has about 17,000 catalogued part numbers, primarily for Asian and American cars in Europe.

The acquisition builds on BBB’s move into the European market last year when it acquired rubber and metal accessories manufacturer Metalcaucho.

“Today, we are delighted to add both Fare and Redline’s technical expertise and proven abilities to deliver differentiated, high-quality products which complements both BBB and Metalcaucho,” said John Boyer, BBB’s president of new ventures. “The Fare and Redline brands have a rich history, and I am excited about these opportunities to bring added value to our existing and new customer relationships.”

Leadership from both Fare and Redline welcomes the acquisition news.

“To join a leading aftermarket company like BBB affirms our past success and promises future opportunities to better serve and delight our customers,” said Ruben Foixench, Fare’s general manager.

“We are very proud of Redline’s achievements over the decades,” said Salvatore Bordonaro, general manager at Redline. “Now, we are excited to become a part of BBB and leverage its vast resources, talent and industry knowledge to continue innovating and growing in our existing, and now greatly expanded, markets.”

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Uni-Select Canada Inc. has completed the acquisition of Pièces d’Auto St-Jean Inc. with two locations located on the south shore of Montréal.

Pièces d’Auto St-Jean is a distributor of automotive aftermarket parts and paints and a member of the Uni-Select network for over 20 years.

“This expands Uni-Select’s corporate store footprint in the Montréal south shore region and this will complement our strong network of independent jobber customers. We are thankful for the opportunity to continue the great legacy of this business,” stated Brent Windom, President and Chief Executive Officer of Uni-Select Inc.

“We are convinced that joining the Uni-Select Corporate Store group is what is best for our employees and the future of Pièces d’Auto St-Jean Inc.,” added Daniel Dulac, former co-owner in partnership with Eric Brissette. “We are extremely proud of our team and believe that combining our local market knowledge with Uni-Select’s resources and store managing expertise will provide superior results for the benefit of our existing and new customers.”

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Dana Incorporated has signed a definitive agreement to purchase a portion of the thermal-management business of Modine Manufacturing Company’s automotive segment. The transaction strengthens Dana’s Power Technologies business unit. The agreed purchase price was $1 with the assumption of certain financial liabilities.

Subject to customary regulatory approvals and other closing conditions, the transaction is expected to be completed in the first half of 2021 and will be consolidated within Dana’s Power Technologies segment. The acquisition balances the company’s current product portfolio by extending its offerings in chillers and water-charged air coolers, adding exhaust-gas recirculation, and expanding its manufacturing process capabilities.

The transaction brings numerous benefits to Dana, including:

• adding approximately $300 million in revenue based on 2019 results, and is expected to contribute $30 million in adjusted EBITDA on a post-synergy basis;

• increasing the scale of Dana’s Power Technologies business by approximately 30 percent, balancing the product portfolio with expanded thermal content, and leveraging complementary manufacturing processes and supply chains;

• accelerating the company’s electrification strategy with electric-vehicle thermal technologies, a key source of market growth;

• strengthening relationships with new and existing light-vehicle manufacturers; and

• diversifying the global geographic footprint of Dana’s Power Technologies operations in the United States, Europe, and Asia.

“Dana’s in-house engineering and manufacturing of thermal-management technologies is an important differentiator, and this acquisition is synergistic to our current portfolio, making it a natural fit for our Power Technologies business,” said James Kamsickas, Dana chairman and CEO. “In addition to strengthening relationships with core customers in Europe and Asia, it presents opportunities to leverage our scale to expand business with new mobility manufacturers and optimize the business to deliver significant value to our shareholders.”

This acquisition includes eight major facilities with operations in China, Germany, Hungary, Italy, the Netherlands, and the United States. The business serves a global roster of original-equipment and new mobility vehicle manufacturers.

www.dana.com

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BorgWarner Inc. has completed its acquisition of Delphi Technologies – a move that is expected to strengthen BorgWarner’s electronics and power electronics products, capabilities, and scale.

Delphi’s aftermarket business will maintain its brand identity, operating as a brand of BorgWarner.

“We are pleased to complete our acquisition of Delphi Technologies,” said Frédéric Lissalde, president and CEO, BorgWarner. “Through this combination, BorgWarner is even better positioned with a more comprehensive portfolio of industry-leading propulsion products and systems across combustion, hybrid and electric vehicles.”

He said he expects the acquisition will strengthen BorgWarner’s commercial vehicle and aftermarket businesses.

“We welcome Delphi Technologies’ colleagues around the world to the BorgWarner team and are excited about the opportunities we have together to address market trends towards electrification.”

Bringing BorgWarner and Delphi Technologies together is expected to:

• Strengthen BorgWarner’s electronics and power electronics products, capabilities and scale, creating a leader in electrified propulsion systems that BorgWarner believes is well-positioned to take advantage of future propulsion migration. Delphi Technologies brings industry leading power electronics technology and talent, with an established production, supply and customer base. The combined company will offer customers a suite of integrated and standalone offerings of power electronics products (including high voltage inverters, converters, on-board chargers and battery management systems) and capabilities (including software, systems integration and thermal management).
• Enhance BorgWarner’s combustion, commercial vehicle and aftermarket businesses. Delphi Technologies’ breadth of combustion propulsion products complements BorgWarner’s innovative portfolio, which is focused on clean technologies to increase efficiency and performance of modern combustion vehicles. Adding Delphi Technologies’ commercial vehicle and aftermarket business results in more balance across light vehicles, commercial vehicles and the aftermarket.

Global aftermarket customers will continue to benefit from an extensive portfolio of BorgWarner and Delphi Technologies OE-quality aftermarket parts, services, diagnostic tools and test equipment.

As a brand of BorgWarner, Delphi Technologies Aftermarket will maintain its brand identity, and customers across the world will be able to rely on their trusted contacts for sales and customer service support.

Delphi Technologies common stock will cease to be traded on the New York Stock Exchange.

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• Cloud-based, all-in-one solution for PIES/ACES/Digital Assets
• In-line edits and real-time validations
• Built-in workflows with view only and edit permissions
• Import and export to Excel or bulk edit in-app
• Receiver-specific scorecards and readiness reports
• One-click exports to resellers (XML, XLS, etc.)
• Commenting system for seamless collaboration
• A well-regarded DIY PIM system with customers scoring PartsHub at 9 out of 10 across criteria of ease-of-use, responsiveness, features and functionality

PartsHub’s integration with the SDC PIM system will make the transition for current PartsHub customers seamless. They will continue to manage their product data within PartsHub without any rate changes. One-on-one orientation for the additional services provided by the SDC will be conducted for current PartsHub users, who will now be included into SDC’s robust and active reseller network, have access to SDC’s data experts for questions and guidance, and participate in SDC’s Data Excellence Award program.

Additional transitions will be rolled out over the next 30-60 days as the SDC team gears up with training and data management for SDC’s current members.

www.semadatacoop.org.

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NPW Companies, a family-owned parts distributor with a national presence in the U.S., has acquired substantially all Oregon and Washington assets of parts distributor Auto Plus, which is owned and operated by Icahn Automotive Group.

Per the agreement, NPW has acquired 13 Auto Plus and two Pep Boys retail stores in Oregon and Washington state.

“This is a great opportunity to grow our parts business and increase our overall service levels in the Pacific Northwest,” said Larry Pacey, president and CEO of NPW Companies. “We have plenty of capacity in our Hillsboro, Ore. distribution center, and we are ready to extend our customer-first approach to these new locations and their customers. We welcome the new employees and customers to the NPW family.”

NPW, headquartered in Miami, Fla., is a shareholder owner of the Aftermarket Auto Parts Alliance, Inc. The company will convert and rebrand the acquired Auto Plus and Pep Boys locations as Auto Value parts stores.

Icahn Automotive will continue to own and operate all of its service centers under the Pep Boys brand in Oregon and Washington state, and will focus on serving the growing demands of do-it-for-me (DIFM) customers and rapidly-growing fleets.

“NPW Companies is an excellent partner with a strong reputation in the region and nationwide, and this transaction will strengthen both organizations, while enabling us to focus on our store footprint in core growth markets,” said Chris Cox, CEO of Parts at Icahn Automotive Group. “I am pleased that our employees will benefit from being part of a great family-owned organization and our customers will continue to have access to premium brands and receive world-class service from a company with a proven track record of providing fast, reliable service and forging true partnerships.”

The deal was finalized Aug. 17, 2020.

NPW Companies was founded in 1969 by Larry Pacey, NPW Companies has been family-owned and operated for more than 50 years.

Auto Plus became part of the Icahn Automotive Group portfolio in 2015.

Icahn Automotive Group LLC consists of Pep Boys automotive aftermarket retail and service chain, Auto Plus automotive aftermarket parts distributor, Precision Tune Auto Care owned and franchised automotive service centers, and AAMCO Total Auto Care franchised service centers. The Company also is the licensor of Cottman Transmission and operates under several local brands. The businesses of Icahn Automotive total over 22,000 employees, over 2,000 company-owned and franchise locations, and 25 distribution centers throughout the US, Canada, and Puerto Rico

www.IcahnAutomotive.com

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Little Rock, Ark.-based Replacement Parts, Inc., which goes to market as Parts Warehouse, Inc. (PWI) and Crow-Burlingame, has completed its merger with Marianna, Fla.-based Tri-States Automotive Warehouse.

The two companies originally announced plans to merge in May.

Tri-States, previously led by the Spence and Stephens families, adds 20 company stores to Parts Warehouse’s operation, bringing the business’s total to 194 company stores and more than 210 independent jobbers.

“Working with the Spence and Stephens families through this process over the past few months has been refreshing. They are indeed a great family,” said Fletcher Lord III, PWI president. “We are excited about growing our business during these troubled COVID-19 times, and we know how incredibly fortunate we are to be in Marianna, Fla. this week.”

PWI is a 101-year-old business currently in its fourth generation of family owner operators. Tri-States, a third-generation family-owned and -operated business, is nearly 75 years old. The Lord and Spence families have been friends and business colleagues for nearly 20 years, and the companies share rich histories, traditional values, focused goals, and an emphasis on family.

The merger expands PWI’s footprint to nine total states: Alabama, Arkansas, Florida, Georgia, Louisiana, Missouri, Mississippi, Oklahoma, and Texas. Parts Warehouse is a shareholder owner of the Aftermarket Auto Parts Alliance, Inc.

SEE ALSO: www.autoserviceworld.com/pwi-tri-states-announce-merger/

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First Brands Group, the global automotive parts manufacturer formerly known as Trico Group, has acquired Brake Parts Inc., which manufactures and markets brake products including the full line of Raybestos brake parts.

It has also acquired Champion Laboratories Inc., a full-line filtration manufacturer with LuberFiner as a leading brand.

The new brands join First Brands Group’s existing brands Fram filtration products, Trico wiper blades, Carter fuel and water pumps, Anco wiper blades, StrongArm lift supports, and Autolite spark plugs.

“We are excited to add Raybestos and Luberfiner comprehensive product lines to our market-leading portfolio of aftermarket brands,” said Guy Andrysick, chief marketing officer at First Brands Group.  “Both Raybestos and LuberFiner are important and natural complements to our current vehicle maintenance and vehicle repair product solutions. We have strengthened our supplier position to support all customers with one of the most comprehensive portfolios of replacement products in the North American automotive aftermarket.”

The acquisitions are effective immediately.
First Brands Group, LLC (formerly the Trico Group) is a global automotive parts manufacturer that serves the worldwide automotive aftermarket industry with best-in-class technology and engineering capabilities.

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Two members of the Aftermarket Auto Parts Alliance — Little Rock, Ark.-based Replacement Parts, Inc., and Distributors Warehouse, Inc. (DWI), headquartered in Paducah, Ky. — have announced plans to merge.

Upon completion of the merger this fall, DWI will join the quickly-growing Parts Warehouse family, which goes to market as Parts Warehouse, Inc. (PWI) and Crow-Burlingame.

“Our family has continually assessed our business as a whole, and it has become clear that doing business like we always have is no longer the best strategy,” said Steve Korte, president of DWI. “It also became clear that the best solution for ensuring our locations continue to thrive in their markets is a strategic partnership with a likeminded company. After 15 months of dialogue, we are confident we have found the right partner to help us move to the next level.”

DWI serves customers in Illinois, Indiana, and Kentucky.

Parts Warehouse currently operates in Alabama, Arkansas, Louisiana, Missouri, Mississippi, Oklahoma, and Texas, and will soon grow to include Florida and Georgia as well.

When the deal is finalized, the two companies will serve a total of 12 states.

In addition to an impressive combined footprint, the companies also have nearly two centuries of collective experience. Distributors Warehouse turns 86 this year, and PWI celebrated its centennial in 2019.

“Our companies share traditional values, focused goals, and a mutual mission to be always about the customer,” said Fletcher Lord III, PWI president. “We are honored to have this longstanding company become part of our growing team.”

PWI and DWI are members of the Aftermarket Auto Parts Alliance, Inc. The two companies remain committed to preserving employee success and excellent customer service throughout the transition.

PWI is a wholly owned subsidiary of Replacement Parts, Inc. (RPI) also operating 177 company stores as Auto Parts Stores / Crow-Burlingame Company and Car Dealer Parts. The company provides parts for hundreds of Certified Service Centers in Alabama, Arkansas, Louisiana, Missouri, Mississippi, Oklahoma, and Texas.

DWI’s automotive distribution center services Illinois, Indiana, and Kentucky. The company currently has 65,000 square feet of usable warehouse space in Paducah and 21 store locations throughout the three states, and it services thousands of retail, wholesale, fleet, and agricultural customers. The company also provides parts for several Certified Service Centers in Illinois, Indiana, and Kentucky.

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Genuine Parts Company (GPC) has completed the sale of S.P. Richards Company, a business products wholesaler that distributes more than 98,000 products to 9,000 resellers and distributors throughout the United States from a network of 44 locations.

S.P. Richards’ core U.S. operations have been sold to an investor group.  The company’s Safety Zone and Impact Products Operations has been sold to an affiliate of H.I.G. Capital.

Both transactions closed June 30.

GPC, which sells automotive replacement parts primarily under the NAPA brand name, expects to use the net cash proceeds from the transactions to enhance its cash position for capital allocation and to repay debt.

Paul Donahue, chairman and CEO of GPC said the move represents a significant step forward in expanding the company’s global footprint and strengthen its focus on sustainable, value-driving initiatives associated with faster growing and higher margin automotive and industrial businesses.

“The sale of S.P. Richards represents the further streamlining of our operations and a significant step forward in our long-term strategy to optimize our portfolio,” he said. “On behalf of the GPC board and management team, I want to thank Rick Toppin and the S.P. Richards team, whose hard work and dedication has made these transactions possible. Both the Investor Group and H.I.G. are supported by talented and experienced teams, and we are confident they are the right partners to lead these respective operations into the future. We look forward to working closely with them to support a smooth transition for our employees, customers and supply base, particularly during the ongoing challenges presented by COVID-19.”

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Alabama-based BBB Industries has acquired the equity interests of Grupo Metalcaucho, a leading European aftermarket supplier in the rubber and metal product segment.

Metalcaucho has a catalogue including over 22,000 SKUs and sales in more than 64 countries.

“Metalcaucho’s expertise and market understanding across Europe, North Africa and more recently Latin America, along with its proven ability to provide high-quality products complementary to our own is a natural fit across continents,” said BBB CEO Duncan Gillis. “I am excited about the opportunity to bring added value to each of our existing and new customer relationships around the world.”

Metalcaucho’s CEO Josep Grañó said, “We are excited to become a part of BBB and leverage its vast resources, talent and industry knowledge to continue innovating and growing in our core markets.”

BBB Industries is a remanufacturing of starters, alternators, hydraulic and air disc brake calipers, both hydraulic and electronic power steering products and turbochargers for the OEM, passenger and commercial vehicle aftermarket industries.

www.bbbind.com

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Uni-Select Inc. announced today that, effective June 1st 2020, Uni-Select Canada Inc. has joined the Aftermarket Auto Parts Alliance, a global network of independent automotive warehouse distributors, forming the largest Canadian group in this sector.

“We are glad to join the Alliance as we are both driven by entrepreneurial spirit and have a strong commitment to the aftermarket,” said Brent Windom, president and chief executive officer of Uni- Select. “This association will enable Uni-Select to accelerate our technological development while reducing development time to deliver world class data management metrics across our customer spectrum.”

He said that while both organizations and their respective brands will remain fully independent, he expects that collaboration will drive increased brand recognition for Bumper to Bumper in North America, and will maximize the impact of our newly launched Bumper to Bumper Auto Service program.”

“Uni-Select is an outstanding company led by some fine people, some of whom I have known for decades,” said John R. Washbish, president and CEO of the Alliance. “They have an extensive footprint and an even more impressive reputation, and we are delighted to welcome them to the Alliance. We are confident this relationship will be mutually beneficial, and we look forward to working together and supporting our channel partners.”

Washbish added that after working in the industry with Uni-Select President and CEO Brent Windom since 1982, he is thrilled to now work even more closely with Windom through the Alliance.

The addition of Uni-Select to the group brings the Alliance’s Canadian member count to 6 and overall shareholder count to 48. It also aligns the Bumper to Bumper brands in North America.

As a fully-participatory member, Uni-Select will utilize Alliance technology platforms, North American sweepstakes, the Certified Service Center program, and more.

Headquartered in Boucherville, Québec, Uni-Select has over 6,000 employees in Canada, the U.S. and the U.K. It supports over 16,000 automotive repair and collision repair shops and more than 4,000 shops through its automotive repair/installer shop banners and automotive refinish banners. Its national network includes over 1,000 independent customer locations and more than 75 company-owned stores, many of which operate under the Uni-Select Bumper To Bumper, Auto Parts Plus, and FinishMaster store banner programs.

In the United States, Uni-Select, through its wholly-owned subsidiary FinishMaster, Inc., operates a national network of over 175 automotive refinish company-owned stores supporting over 30,000 customers annually and is the primary supplier to more than 5,500 collision repair centre customers.

In the U.K. and Ireland, Uni-Select, through its Parts Alliance group of subsidiaries, is a major distributor of automotive parts supporting over 23,000 customer accounts with a network of over 175 company-owned stores. www.uniselect.com

The Aftermarket Auto Parts Alliance, Inc. is a leading global aftermarket distribution and marketing program group. It is comprised of 48 shareholders throughout North and South America. Together, these members supply parts to more than 2,400 corporate and jobber affiliated stores and more than 3,700 Certified Service Centers. Members go to market as Auto Value or Bumper to Bumper in the United States, and as Auto Value in Canada, Latin America, and South America. The Alliance is a member of TEMOT International Auto Parts.

www.autovalue.com

www.bumpertobumper.com

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Parts Warehouse, Inc. (PWI), based in Little Rock, Ark., and Tri-States Automotive Warehouse, headquartered in Marianna, Fla., have announced intentions to merge their two multi-generational family-owned businesses.

Tri-States will become a part of Parts Warehouse when the anticipated merger is completed in August 2020.

“Tri-States is thrilled with this opportunity to join the Parts Warehouse team,” said Kelly Connolly, Tri-States president. “This will allow us to operate bigger, stronger, faster, and provide even better customer service with even more parts availability.

Tri-States, which operates in Alabama, Florida, and Georgia, will maintain their current company stores as well as their warehouse in Marianna. Combined, the two companies will now serve nine states including Alabama, Arkansas, Florida, Georgia, Louisiana, Missouri, Mississippi, Oklahoma, and Texas.

“Our shared knowledge, resources, and now larger footprint will help us continue to grow and excel at what we do,” said Fletcher Lord III, PWI president. “We welcome Tri-States to the team, but more importantly, to our family of families.”

Both PWI and Tri-States are shareholder owners of the Aftermarket Auto Parts Alliance, Inc. The two companies have personal friendships and professional relationships stretching back decades.

PWI is a wholly owned subsidiary of Replacement Parts, Inc. (RPI) also operating 177 company stores as Auto Parts Stores / Crow-Burlingame Company and Car Dealer Parts.

Tri-States’ automotive distribution center services the entire panhandle of Florida, South Alabama, and South Georgia. The company delivers nightly to 20 company-owned Auto Value stores, 60 independent Auto Value associates, and 43 other independent auto parts stores.

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On the heels of its recent acquisition of CRP Industries’ Continental-related belt and kit program, Continental’s North American automotive aftermarket business has now the capability to provide a full complement of belt, kit and hose products and services to all its aftermarket channels.

“We already have a strong position in the retail channel and a strong all-makes program for the traditional channel,” said Stefan Feder, Continental’s head of import channel, sales and marketing.“With the transition of our new import business in full swing, we are confident we are well-positioned to grow in all three North American aftermarket channels.”

He said an integral strategy of Continental’s growth includes enhanced service to the customer.

“With established and fine-tuned structures to fulfill this strategy on the retail and all-makes channels, we now strengthen our North American team for the import channel with additional experience,” said Feder.

Mark Pascuzzo has joined Continental’s North American Import Channel team

Mark Pascuzzo, a veteran of 30-plus years in the automotive aftermarket, has joined Continental’s North American Import Channel team as that key account manager.

Pascuzzo previously was a commercial sales manager for a major worldwide aftermarket company with responsibility for North America. In addition, he was a district manager for a major auto parts company in the automotive aftermarket, focusing on import channels.

“We are very excited to have Mark on our team.  He is a valuable asset,” said Feder. “Mark’s experience and success in the Import Channel will accelerate the further integration of our recently acquired Continental branded belt and kit business.” Pascuzzo’s appointment is effective immediately.

Continental develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent, and affordable solutions for vehicles, machines, traffic and transportation. In 2019, Continental generated sales of €44.5 billion and currently employs more than 240,000 people in 59 countries and markets.

www.continental.com

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Wards Auto is reporting that the recently announced acquisition of Delphi Technologies by BorgWarner could be in jeopardy.

The company’s news site says Delphi’s use of a $500 million line of credit is being interpreted by BorgWarner as a violation of the acquisition agreement.

According to Wards Auto, “the deal announced in January for BorgWarner to take over Delphi Technologies, then valued at $3.3 billion, now hangs in the balance.”

Both sides have indicated that the deal is still in the works, but tensions have apparently arisen over the companies’ handling of the Covid-19 crisis.

You can read the Wards Auto report HERE.

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Grupo Morsa, an automotive parts distributor based in Sinaloa, Mexico has joined the Aftermarket Auto Parts Alliance as an Auto Value shareholder.

“Grupo Morsa is a fantastic fit for the Alliance,” said John R. Washbish, president and CEO of the Alliance. “Their impressive footprint and top-notch customer service are commendable. With Grupo Morsa on board, we look forward to continuing to grow and succeed for years to come.”

Grupo Morsa was founded by Alfonso Vazquez, a sales representative in the northwest of Mexico. He opened his first warehouse in 1978. After he passed away, his son and daughter took over and brought the company’s presence nationwide. The group is considered an environmentally-friendly organization, priding itself on customer service.

“In Grupo Morsa we are very excited about our partnership with the Aftermarket Auto Parts Alliance,” said Miguel Vazquez, chairman of the board of Grupo Morsa and son of Alfonso Vazquez. “Belonging to a global purchasing group is an important step for us in the development of our organization. We are ready to take advantage of everything the group offers, and to contribute to further strengthen the aftermarket industry in Mexico.”

Gurpo Morsa boasts 27 warehouses spanning 14 states and split between automotive, battery, and diesel parts. It employs more than 1,000 team members and does the majority of its business through e-commerce platform Morsa Click.

www.autovalue.com

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BorgWarner Inc. has entered into an agreement to purchase Delphi Technologies PLC in an all-stock transaction that values Delphi Technologies’ enterprise at about US$3.3 billion.

According to a joint press release, the deal creates “a global enterprise focused on innovating propulsion systems and aftermarket solutions so that passenger cars and commercial vehicles drive cleaner, better and further.”

Under the terms of the agreement, which has been approved by the boards of directors of both companies, Delphi Technologies stockholders would receive a fixed exchange ratio of 0.4534 shares of BorgWarner common stock per Delphi Technologies share. Upon closing of the transaction, current BorgWarner stockholders are expected to own approximately 84% of the combined company, while current Delphi Technologies stockholders are expected to own approximately 16%.

“This exciting transaction represents the next step in BorgWarner’s balanced propulsion strategy, strengthening our position in electrified propulsion as well as our combustion, commercial vehicle and aftermarket businesses,” said Frédéric Lissalde, president and CEO of BorgWarner, Inc. “Delphi Technologies will bring proven leading power electronics technologies, talent and scale that will complement our hybrid and electric vehicle propulsion offerings.”

“This is a compelling transaction that we are confident delivers clear benefits to our stakeholders,” said Richard F. Dauch, CEO of Delphi Technologies. “Delphi Technologies’ portfolio is highly complementary to BorgWarner’s, and together we plan to create a pioneering propulsion technologies company uniquely equipped to serve OEMs and aftermarket customers around the world. BorgWarner’s team shares our focus on addressing today’s and tomorrow’s challenges, and the combination will create exciting opportunities for our employees. We also expect our stockholders will benefit from the opportunity to participate in the future growth and upside potential of the combined company.”

In fiscal year 2019, BorgWarner and Delphi Technologies estimate that they generated $10.17 billion and $4.36 billion of net sales, respectively. Following the close of the transaction, the combined company is expected to be one of the leading pure-play propulsion companies globally, serving light and commercial vehicle manufacturers and the aftermarket.

The BorgWarner/Delphi Technologies transaction is expected to close in the second half of 2020, subject to approval by Delphi Technologies’ stockholders, the satisfaction of customary closing conditions and receipt of regulatory approvals.

The combined company has established a landing page to announce the agreement:

www.leadingpropulsion.com

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Mahle Aftermarket officially takes over Behr Hella Service (BHS) tomorrow, when all existing BHS activities are transferred to Mahle’s control.

The new logistics center in Wrocław, Poland, the future hub for thermal management products for passenger cars, trucks, agricultural vehicles, and construction machines, is now being filled, allowing Mahle to ensure a high level of availability as well as short delivery times.

The Mahle Aftermarket logistics centers in Germany, the U.K., Spain, France, Turkey, Russia, Brazil, the USA, and China are also equipped and ready for orders.

With its expanded thermal management portfolio, Mahle is positioning itself more broadly with regard to the increasingly important e-mobility market in particular. Thermal management is, after all, a central prerequisite for the reliable operation of electrically powered vehicles.

“The feedback from our customers in relation to the launch campaign has been extremely positive,” says Olaf Henning, corporate executive vice president and general manager of Mahle Aftermarket. “The workshops are aware of the challenges they face from the mobility transformation and the diversity of new technologies, and they are counting on us. We will support them by providing fast and reliable diagnostic and service solutions, information, and, of course, spare parts.”C

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The boards of Fiat Chrysler Automobiles and PSA Peugeot have signed a binding merger creating the world’s fourth-largest automaker with the scale to confront the challenges of stricter emissions regulations and the transition to new driving technologies.

The companies said in a joint statement the new group will be led by PSA’s cost-cutting CEO Carlos Tavares, with Fiat Chrysler’s chairman John Elkann as head of the board of the merged group. Fiat Chrysler CEO Mike Manley will stay on, though it was unclear in what capacity.

No name for the new company has been decided, executives said, but both Tavares and Manley insisted it was not a “touchy subject.”

The merger is expected to yield 3.7 billion euros in savings a year, which will be invested in “the new era of sustainable mobility” and to meet strict new emissions regulations, particularly in Europe.

“The merged entity will manoeuvre with speed and efficiency in an automotive industry undergoing rapid and fundamental changes,” the companies said in their statement.

The new technologies include electrified engines, autonomous driving and connectivity, part of what Tavares described as `’the transition to a world of clean, safe and sustainable mobility.” Both companies have lagged in developing electric cars in particular.

The deal, which was first unveiled in October, was billed as a 50-50 merger, but PSA has one extra seat on the board and Tavares at the helm, giving the French carmaker the upper hand in daily management.

The executives said they expect the deal to take 12-15 months to close. It will create a company with revenues of nearly 170 billion euros (nearly $190 billion) and producing 8.7 million cars a year – just behind Volkswagen, the Renault-Nissan alliance and Toyota.

No plants will be closed under the deal, the companies said. Savings will be achieved by sharing investments in vehicle platforms, engines and technology, while leveraging scale on purchasing.

But the executives also said there would be cuts. Decisions on where those will come will be made after the deal closes.

“There is room for sharing (a) significant amount of existing platforms and avoiding excess investments for the future,” Tavares said.

Fiat Chrysler shares rose nearly 1% in Milan, while Peugeot gained almost 2% in Paris trading.

Both the Peugeot and Fiat brands are strong on small car technology, with significant overlap in Europe. Manley said that the convergence of platforms would be “an early target” that will likely take two years to achieve.

Nick Oliver, a management professor at the University of Edinburgh Business School, said that most of the savings are likely to come from cost cuts as `’it is not clear how the merger will boost joint revenues.”

“Neither partner has products that can easily be sold under the others’ brands in new or existing markets. Both are weak in China, the world’s largest car market, while their centre of gravity is in the mature European market,” Oliver said.

Meanwhile, the deal will give Peugeot the opportunity to try to sell more in the U.S., where it does not have much of a presence. With 2,640 dealers across the U.S., Fiat Chrysler would be a ready distribution network.

PSA specializes in small and medium-sized cars, which have fallen out of favour with U.S. and even some international buyers who prefer SUVs and trucks. PSA could build its own vehicles off the underpinnings of Fiat Chrysler’s hot selling Jeep SUVs and Ram trucks.

The new company will be legally based in the Netherlands, and traded in Paris, Milan and New York.

The executives played down the significance of the new entity’s name and headquarters location, but both are symbolic choices that will signal who is in the driver’s seat.

The French and Italian governments as well as unions will be looking for such details, given the national significance of car-making to both economies. The French government helped rescue PSA Peugeot in 2014 and owns a 12% stake through the state investment bank.

While the merger of Fiat and Chrysler has been a success, thriving on the strength of the U.S. market and the executive prowess of long-time CEO Sergio Marchionne, the history of car mergers is littered with failed tie-ups. Most famous among those is the short-lived Daimler-Chrysler merger, which foundered on cultural differences between the German and U.S. executives.

The new company will start with a strong base in Europe, where PSA is the second-largest carmaker, while Fiat makes most of its profits in North America and has a strong presence in Latin America. It will be looking to strengthen its position in China, where both companies lag.

“That is part of the opportunities,” Tavares said. `’We are not happy with our performance there. We think we should be doing better in China.”

Tavares said the deal has the support of Chinese partner and investor Dongfeng. As part of the deal, Dongfeng’s stake in the new company will be diluted from 6.2% to 4.5%.

Fiat Chrysler will pay its shareholders a 5.5 billion-euro ($6.1 billion) premium, raising questions about whether the new company will be saddled with debt. Analysts estimate that Peugeot is paying a hefty 32% premium to take control of Fiat Chrysler.

Fiat Chrysler has long been looking for an industrial partner in recent years, and a previous deal with French rival Renault last spring fell apart over French government concerns about the role of Renault’s Japanese partner, Nissan.

Tavares said both the French government and unions backed the new deal from the beginning.

French Finance Minister Bruno Le Maire said in a statement the deal was “very good news for France, for Europe and for our auto industry.” He said the government would keep an eye on where the company decides to set up its executive headquarters, the impact on French jobs and PSA’s commitment to creating a European battery industry.

Italy’s economy and finance minister, Roberto Gualtieri, likewise welcomed the deal, saying it “was a fundamental step in the consolidation of the car industry.”

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Data analytics and consumer intelligence company J.D. Power has announced it will merge with Autodata Solutions, a provider of data and software solutions for the automotive ecosystem.

The merger marks the completion of J.D. Power’s acquisition by private equity firm Thoma Bravo, the owner of Autodata Solutions.

The newly combined company will operate under the name J.D. Power and will offer market-leading new and pre-owned automobile transactional data, valuation tools, vehicle feature information and consumer analytics to the automotive industry. J.D. Power will also continue to provide industry leading benchmarks, analytics and customer insights across the Banking & Payments, Wealth & Lending, Telecommunications, Insurance, Health, Travel and Utilities sectors through its Global Business Intelligence division.

“The combination of J.D. Power’s deep data, analytics and customer experience insights with Autodata Solutions’ comprehensive vehicle feature data and dealer and manufacturer technology platforms will create a robust and insightful automotive industry resource for analyzing consumer demand and optimizing the vehicle sales process,” said Dave Habiger, who will continue on as president and CEO of J.D. Power. “As the auto industry continues to be disrupted by changing patterns of consumer behavior and new technologies such as connected vehicles, electric vehicles, autonomous vehicles and ridesharing, we are building a company that will help the entire industry rise to the challenge.”

J.D. Power has delivered industry intelligence on customer interactions with brands and products for more than 50 years.

In the automotive sector, J.D. Power is recognized for its Voice-of-the-Customer research and its Power Information Network (PIN) and Used Car Guide (UCG) products, which provide the industry with new and used car transaction information. The company has also pioneered the use of artificial intelligence (AI) capabilities to merge its vast database of consumer behavioral data, pricing information and “Voice of the Vehicle” telematics-based data into powerful predictive models.

Autodata Solutions provides Software as a Service (SaaS) and software solutions that range from back-end automation systems that enable dealer-to-original equipment manufacturer (OEM) vehicle ordering to data-driven, consumer-focused interactive marketing initiatives. Its Chrome-branded solutions increase the effectiveness of the automotive sales ecosystem and include rebates and incentives, Vehicle Identification Number (VIN) decode and describe, and vehicle configuration and comparisons.

Together, the two companies create a complementary set of capabilities that will strengthen the global automobile industry’s ability to forecast vehicle demand and shape strategic decision making.

“The joining of these two leading companies will enable the auto industry to make the process of configuring, ordering and selling cars more efficient, which can improve profitability and capital deployment,” said Scott Crabill, a Managing Partner at Thoma Bravo. “This capability is exactly the kind of proven, concrete insight the auto industry needs as it confronts changing consumer demands in a transforming technology environment.”

In addition to the investment by Thoma Bravo, J.D. Power’s existing management team will reinvest their ownership interest in the newly combined company. All of the current Autodata Solutions and J.D. Power employees will have the opportunity to take an ownership stake in the company.

The headquarters for the combined company will be in Troy, Mich.

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Two top brands in automotive repair and performance chemicals, Rislone and Hy-per Lube, are coming together to create a new line of premium products focused on high-performance. The new Rislone Hy-per family will include all the current Hy-per Lube motor oil, fuel system, and cooling system additives, as well as several related products from the Rislone lineup.

Rislone Hy-per products will be available worldwide in 2020.

As part of the brand realignment, Rislone will continue to focus on vehicle maintenance, performance, and longevity products that repair, restore, and renew vehicle systems. Rislone Hy-per products will be geared toward high-demand, high-stress, and heavy-duty applications. They’ll be identified by a new logo — the familiar yellow Rislone oval with a checkered Hy-per Lube flag behind it. The brand’s tagline emphasizes the unmatched industry experience and performance focus of every Rislone Hy-per product: “Proven Technology. Hy-per Performance.”

“Rislone and Hy-per Lube have more than 150 years of combined experience keeping cars running longer and performing their best,” says Clay Parks, vice president of development. “Moving Hy-per Lube under the Rislone brand umbrella lets us maintain Hy-per Lube’s legacy of high-performance while allowing us to offer an expanded lineup of proven technology for the toughest situations, from stop-and-go driving to the racetrack or the construction site.”

The initial Rislone Hy-per line will include Rislone Hy-per Lube Oil Supplement, Rislone Hy-per Lube Zinc ZDDP Supplement, Rislone Hy-per Cool Super Coolant, Rislone Hy-per Cool Radiator Cleaner and Super Flush, Rislone Hy-per Fuel Super Concentrated Fuel Injector Cleaner, Rislone Hy-per Fuel Complete Gasoline Fuel System Treatment, and Rislone Hy-per Diesel Complete Diesel Fuel System Treatment.

The rebranding will roll out gradually throughout 2020 and will be announced to consumers with new marketing assets.

Rislone is based in Holly, Mich.

www.rislone.com

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Drew Technologies, Autologic Diagnostics, Farsight, and Bluelink Diagnostic Solutions — all companies within the Intelligent Vehicle Support (IVS) division of Opus Group AB, are unifying and will officially be known as Opus IVS.

Bluelink was welcomed into the Opus IVS division in 2019, alongside Drew Technologies (2015), Farsight (2017) and Autologic (2017). The companies have used their combined expertise to support collision repair shops, independent mechanical repair shops, and technicians in repairing complex vehicle technology.

Drew Technologies is known globally for the development of OEM factory-authorized tools used at dealerships and J-2534 flash diagnostic products that give independent service shops the same capabilities as OEMs. Autologic is a leader in vehicle diagnostics providing tools and live diagnostic support that give shops OEM-level coding and programming capabilities across European, U.S. and Asian car brands. Bluelink is a pioneer of remote vehicle communications and programming hardware and software, developing solutions that offer remote diagnostics coverage for more brands and more model years. Farsight is a legacy company that has strengthened Autologic and Drew Technologies all-brand diagnostic and service capabilities since joining the group.

“In a short time, we have brought these leading companies together within Opus IVS and leveraged the technology from over 30 patents we have pending to help technicians repair complex, modern vehicles. Rebranding as Opus IVS is the next logical step in our companies’ evolution allowing us to deliver even more advancements to the market under one unified identity that emphasizes our strengths in innovation and diagnostic support,” says Opus IVS president Brian Herron.

Opus IVS Diagnostic Solutions

Opus IVS offers a unique combination of licensed OEM software and aftermarket diagnostic solutions with expert guidance from OEM-trained master technicians to help shops get the job done. Opus IVS companies have worked together to deliver several innovative solutions.

DrivePRO combines licensed OEM software, aftermarket ease-of-use, remote programming, and calibration—all connected to factory-trained live technicians enabling businesses to tackle complex intelligent vehicle repairs.

DriveCRASH, Opus IVS’ collision-specific diagnostic platform, is the only OEM-endorsed pre/post-scanning tool to integrate wide OE coverage, on-demand QuickScan, remote programming, calibration and a full diagnostic scan tool with our live team of master technicians to support you.

RAP2 is a remote programming solution with no upfront purchase price, OEM approval, built in 4G, guaranteed results, and wider coverage than any other system on the market. All backed by Drew Technologies, the experts in J2534 flash programing for over 20 years

Customers will see more benefits from the union in the future, as they continue to focus on delivering high-quality diagnostic solutions to service shops around the world.

www.opus.global

www.opusivs.com

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Fiat Chrysler Automobiles and PSA Group (formerly Peugeot Citroën Moteurs) plan to join forces through a 50-50 share swap to create the world’s fourth-largest automaker.

FCA and PSA announced yesterday that they aimed to reach a binding deal to create a $50 billion company domiciled in the Netherlands, with listings in Paris, Milan, and New York and with PSA’s Carlos Tavares as CEO and FCA’s John Elkann as chairman.

The move comes less than five months after FCA abandoned merger talks with PSA’s French rival Renault and at a time when carmakers are grappling with a global downturn in demand, as well as costly new technologies such as self-driving vehicles and cleaner models to meet tough new emissions rules.

“The Supervisory Board of Peugeot S.A. and the Board of Directors of Fiat Chrysler Automobiles N.V. have each unanimously agreed to work towards a full combination of their respective businesses by way of a 50/50 merger,” the companies said in a joint statement.

The management teams of FCA and PSA will seek to finalize the discussions in the coming weeks to create a group with 8.7 million in annual vehicle sales and make savings of 3.7 billion euros ($4.1 billion), even without plant closures, they said.

The group will include the Fiat, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, Citroen, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as trucks and light commercial vehicles.

About 80 percent of potential synergies could be achieved within four years, at a cost of 2.8 billion euros ($3.1 billion), the companies said.

“In a rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility, the combined entity would leverage its strong global R&D footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency,” FCA and PSA said.

French Finance Minister Bruno Le Maire welcomed the deal, saying it would give the two companies the critical mass needed to thrive in a fast changing industry.

The combined group will have an 11-person board, with six members coming from PSA and five from FCA.

As part of the deal, FCA will pay its shareholders a 5.5 billion euro ($6.1 billion) special dividend and hand them shares in its robot-making unit Comau, they said.

Jefferies analyst Philippe Houchois said PSA was effectively paying a 32 percent premium to take control of FCA. “We continue to see FCA-PSA as the most logical and attractive combination in autos,” he said.

FCA shares jumped more than eight percent in early trade, while PSA’s dropped about seven percent.

The deal would give PSA a stronger position in North America, where FCA makes the vast bulk of its profits.

PSA has already integrated Opel and Vauxhall, which it bought from General Motors in 2017, shifting them from nine GM platforms to just two, a step which helped Opel to return to profit after more than a decade of losses.

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After opening its Paris, Ark., manufacturing plant in 1963, Cloyes Gear and Products announced it has successfully regained ownership of the manufacturing operation from American Axle & Manufacturing (AAM).

AAM held ownership of the plant following its 2017 acquisition of Metaldyne Performance Group Inc. (MPG), which included Cloyes.

In April 2018, Hidden Harbor Capital Partners, an operationally focused private equity firm specializing in control investments in lower middle market companies, acquired Cloyes and immediately started the process of purchasing the Paris plant to continue Cloyes’ nearly 100-year-old manufacturing history in the United States.

“Cloyes came to Paris in 1963 and has been a big part of the town’s economy for more than 56 years. Many of our employees have worked for Cloyes their entire adult life and have more than 30 years of seniority with the company,” said Steve Fairbanks, vice president of manufacturing for Cloyes. “It is a huge advantage for our company to be able to stay in this area and retain our employees’ skill set and wealth of knowledge. It is also a great opportunity for the town to maintain high paying manufacturing jobs, which coincidently are closely linked to jobs that our local career center is preparing our young and upcoming workforce for.”

The 155,00-square-foot manufacturing plant manufactures highly machined powertrain gears, sprockets, and idler assemblies for automotive original equipment manufacturers, the automotive aftermarket, marine, and high-performance applications. The plant’s key processes include machining, hobbing and shaping, heat treatment, and finishing, and is also home to a quality and metrology laboratory that supports both manufacturing and engineering product development.

“Our team is focused on growing the Cloyes brand and business which is evident with our continued investments in marketing, sales personnel, global expansion, manufacturing, and overall operations,” said John Bohenick, chief executive officer for Cloyes.

“Cloyes, the management team, and the owners are committed to our customers, the communities we work and live in, our people, and to the betterment of the industries we serve. We will continue to work to be a leading supplier by providing exceptional products, quality, and service to all customers.”

www.cloyes.com

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Automotive data company IHS Markit has announced the acquisition of Novation Analytics, a specialist provider of software solutions, data analysis, and advisory services to the automotive industry.

Novation Analytics focuses on the modelling of vehicle energy efficiency and CO2 emissions compliance. The team is based in Auburn Hills, Mich., and is headed by Greg Pannone and Heidi Schroeder.

“We’ve been working closely with Novation Analytics over the last few years, helping original equipment manufacturers and suppliers navigate the emissions compliance challenges,” said Tim Armstrong, vice president, automotive planning solutions at IHS Markit. “Having the team on board will help us scale our capabilities as we plan to bring new solutions to the market beyond the CO2 emissions sector.”

“Car emission compliance is becoming ever more challenging for auto manufacturers,” added Greg Pannone, president of Novation Analytics. “Being part of the IHS Markit family enables us to provide a more holistic emissions modelling and simulation for automotive manufacturers and suppliers.”

www.ihsmarkit.com

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Distribution Stox has acquired Provincial Tire Distributors, an Ontario-based company in business for more than 30 years.

The acquisition is being described as “a major step forward” for the Quebec-based tire distributor, adding a new province to its distribution network.

According to a press release from Distribution Stox, the Provincial Tire Distributors team “has worked with passion to provide customers with the best quality of service.” It is a corporate value that Stox shares.

“Starting today, we are joining our forces to pursue the development of our respective markets,” said Bruno Leclair, president and CEO of Distribution Stox. “Over the coming weeks and months, we will work closely on a transition plan to synergize the strengths and the experience of both groups.”

Leclair said the addition of new product lines, the implementation of new management tools, and the sharing of expertise are examples of stimulating projects that make Distribution Stox confident about the future.

“Our main objective is to maintain the highest level of customer satisfaction with operational effectiveness and best business practices with the cooperation of a dedicated team of over 300 employees in 17 cities,” he said.

Provincial Tire Distributors was founded in 1988. Its administrative headquarters is in Barrie, Ont. and daily operations are made through the facilities in the Ontario cities of Barrie and Sudbury.

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Uni-Select Inc. has completed its sale of the ProColor banner program to Fix Auto.

“Since Uni-Select launched the ProColor banner in Québec in 2001, the network grew from 28 to 172 collision repair shops,” said Brent Windom, president and CEO of Uni-Select. “I wish to extend our gratitude to the ProColor team members who worked with us during the past 18 years and contributed to establish ProColor’s clear leadership position in the Québec market. Fix Auto has a strong global network and a solid reputation in the auto repair industry, especially in the Canadian market, and we are excited that ProColor will continue to grow under their umbrella.”

ProColor will complement Fix Auto’s operations in Québec and the Uni-Select network is committed to continuing to support ProColor and furthering the expanded growth throughout Canada through a long-term supply partnership agreement.

Uni-Select has also entered into a transition agreement with the acquirer to ensure an orderly and smooth transition for team members, customers and suppliers.

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Drew Technologies has acquired the Durham, N.C.-based vehicle diagnostics provider BlueLink Diagnostic Solutions.

Drew Technologies, Inc., a diagnostics and reprogramming company based in Ann Arbor, Mich., acquired BlueLink’s technology and operating assets for 2.8 Million Swedish Kroner (approximately $384,000 CDN).

BlueLink’s technology and operations will be integrated into the offerings of Drew Technologies and Autologic, both part of the IVS division of Opus Group.

Existing products offered under the BlueLink brand will be supported and further developed by Opus’ IVS division.

“I am excited to welcome BlueLink into the Opus family,” says Brian Herron, president of the IVS Division. “Drew Technologies and Autologic have used BlueLink technology for several years. BlueLink was founded in 2005 and developed specialized remote vehicle diagnostics technology and services, perfectly complementing the current Opus IVS offering. Opus IVS products and services are already utilizing BlueLink’s patent pending technology to assist our customers.”

He said the BlueLink and Opus IVS teams will leverage engineering synergies to accelerate vehicle diagnostics technology that will help our customers better service intelligent vehicles.

Beyond the technology potential, the highly qualified expert technicians at BlueLink’s North Carolina call center will help Opus IVS to deliver quality services to our customers,” he said. “With this acquisition, Opus IVS now has four call centers in North America, employing over 100 trained and experienced technicians.”

Opus Group is a public limited company headquartered in Gothenburg, Sweden. Its IVS division focuses on supporting technicians who repair intelligent and complex vehicles. It includes Drew Technologies and Autologic, with additional assets and personnel from Farsight and now also BlueLink.

www.drewtech.com

www.autologic.com

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