Worldpac to be sold to private firm

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.”