O'Reilly Automotive Forays Into Canadian Market, Acquires Automotive Distributor Groupe Del Vasto
Portfolio Pulse from Shivani Kumaresan
O'Reilly Automotive, Inc (NASDAQ:ORLY) has announced the acquisition of Groupe Del Vasto, a Canadian automotive parts distributor and marketer. This marks O'Reilly's entry into the Canadian automotive aftermarket. The acquisition includes all outstanding shares of Groupe Del Vasto and its affiliated entities, which operate two distribution centers, six satellite warehouses, and 23 company-owned stores across five Canadian provinces. The financial terms were not disclosed, and the transaction is expected to close in January 2024, pending customary closing approvals. As of September 30, 2023, O'Reilly had $82.7 million in cash and equivalents. ORLY shares closed up 0.90% at $960.13 on Monday.
December 19, 2023 | 11:06 am
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O'Reilly Automotive's acquisition of Groupe Del Vasto represents strategic growth into the Canadian market, potentially expanding its revenue base and market presence in North America.
The acquisition of Groupe Del Vasto is a significant strategic move for O'Reilly Automotive, indicating an expansion of its market presence and potential for increased revenues from a new geographical segment. The positive market reaction, with shares closing up 0.90%, suggests investor optimism regarding the acquisition's potential to create value. The deal is expected to close in January 2024, which provides a clear timeline for integration and realization of potential synergies.
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