Unitas to complete $800m Exego exit to Genuine Parts

The US company bought a 30% stake in Exego - which operates the Repco brand - in January of last year for $150 million and had the option of taking the remainder at a later date, subject to certain earnings thresholds being met. This option is now being exercised.

"The Exego team exceeded our expectations for meeting the growth and earnings thresholds outlined in our original agreement, thus, we were presented with the opportunity to move forward with our investment earlier than expected," Tom Gallagher, chairman and CEO of Genuine Parts, said in a statement.

The company will finance the acquisition through a combination of cash and debt.

Exego was established in 1922 and claims to be the leading aftermarket distributor of automotive replacement parts and accessories in Australasia, with more than 430 locations and annual revenues in excess of $1 billion. The Repco division, which supplies car parts, operates 290 stores in Australia and 92 in New Zealand.

Exego also sells lighting, electrical and air-conditioning devices through Ashdown-Ingram and motorcycle helmets, footwear and clothing through McLeod Accessories, while the Motospecs divisions is responsible for engine management, power steering and braking maintenance services.

Unitas, then known as CCMP Capital Asia, completed the buyout of Exego, then known as Repco, in 2006. The transaction, made through the private equity firm's $1.6 billion Asia Opportunity Fund II, was priced at 8.6x EBITDA and translated into an enterprise valuation of around A$570 million (then $460 million). The private equity firm's equity contribution was said to be A$336 million.

Unitas took the company private with a view to restructuring the business, which led to it being rebranded as Exego.

Repco went through another PE-led restructuring in 2001 when GS Private Equity (now known as Archer Capital), Gresham Private Equity and Macquarie bought the business from Pacific Dunlop for about A$250 million, of which A$100 million was equity. The company went public in 2003, raising A$405 million.

Gresham and GS each owned about one third of the business. The former said the investment generated an IRR of 146% and a money multiple of 5.5x.

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• Topics
• Exits
• Australasia
• Buyouts
• Support services
• Unitas Capital
• Exit
• Trade sale
• Australia
• buyout
• automobiles