Alongside its third-quarter earnings results, O’Reilly Automotive Inc. (Nasdaq: ORLY) yesterday reported a planned buyout to enter two new states in New England.
Upon competition of its definitive agreement to purchase privately held Barre, Vermont-based Bond Auto Parts for undisclosed terms, the Springfield-based retailer will enter Vermont and New York. Bond Auto operates 48 stores in Vermont, New Hampshire, Massachusetts and New York, according to a news release.
“Over the past 60 years, the Bond family has built a very successful business based on a culture of providing excellent customer service, which makes their company a perfect fit,” O’Reilly Automotive President and CEO Greg Henslee said in the release.
Henslee added the company is targeting 190 net, new stores next year, slightly lower than usual due to resources being devoted to converting the 48 Bond stores. The deal is expected to close by year’s end. O’Reilly Automotive Director of External Reporting and Investor Relations Mark Merz said the purchase price isn’t being released because it is “not material” according to U.S. Securities and Exchange Commission guidelines.
“This particular acquisition does not meet any of the triggers for discrete disclosure,” he said.
O’Reilly Automotive gained a foothold in the New England market with its
late 2012 purchase of Lewiston, Maine-based VIP Parts Tires & Service.
In the third quarter, O’Reilly Auto posted net income of $278.5 million, a 4.6 percent increase from $266.3 million a year earlier. Diluted share earnings rose 25 cents to $2.93, according to the release.
The company’s sales rose 6.8 percent to $2.2 billion. Comparable store sales increased to 4.2 percent, compared with a 7.9 percent increase in third-quarter 2015.
O’Reilly Auto held assets of $7.5 billion and operated 4,712 stores as of Sept. 30, according to the release.
ORLY shares were trading at $266.12 as of 8:52 a.m., compared with a 52-week range of $225.12 to $292.84.
