Blackstone sells AAG to Genuine Parts Company for $2bn

Kenny Wastell
26 September 2017

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Blackstone has sold its stake in UK-based auto parts distributor Alliance Automotive Group (AAG) to listed US trade buyer Genuine Parts Company in a deal giving the business an enterprise value of $2bn.

The deal values the company at more than three times the €440m figure – then equivalent to around $588m – at which Blackstone acquired the company just three years ago. It also values the business at 14.5x its most recently reported pro forma adjusted EBITDA figure of €117m for the 12 months ending in Q3 2016, though it has since made at least two acquisitions.

Under the vendor's three-year tenure, AAG undertook an acquisitive growth strategy with a particular focus on expansion into the DACH market. As of the end of Q3 2016, the group had made 18 acquisitions for a total cash consideration of €61m. It has since acquired Poland-based Groupauto Polska and Germany-based Klapper Autoteile in 2017.

The trade buyer intends to finance the deal with $2bn of debt financing consisting of new term loan agreements, new multi-currency debt and a larger revolving credit facility.

The transaction is expected to close in Q4 2017, subject to regulatory approval.

Previous funding
AAG (then based in France and known as Alliance Industrie) first came under private equity ownership in 2006, when Weinberg Capital Partners acquired it via an auction estimated to be worth €300m.

Blackstone then acquired the company from Weinberg alongside company management in August 2014 in a deal reportedly valued at €440m.

Company
Headquartered in London and founded in 1989, AAG is a provider of light vehicle and commercial vehicle spare parts. The company is anticipating revenues of $1.7bn in 2017, according to a statement, and has a headcount of 7,500 across 1,800 stores in the UK, France and Germany.

People
Blackstone – Lionel Assant (head of European private equity).
Alliance Automotive Group – Jean-Jacques Lafont (chairperson, CEO, co-founder).
Genuine Parts Company – Paul Donahue (president, CEO).

Advisers
Acquirer – JP Morgan (corporate finance); Davis Polk & Wardwell (legal).
Company – Lazard (corporate finance); UBS (corporate finance); Linklaters (legal).