O'Reilly Auto to acquire retail portion of Maine firm

O'Reilly Automotive Inc. (Nasdaq: ORLY) has penned a definitive agreement to acquire the auto parts-related assets of a privately held New England company. The move marks the Springfield auto parts company's expansion into new territory.

The asset purchase of the auto portion of Lewiston, Maine-based VIP Parts, Tires & Service is expected to finalize Dec. 31 for an undisclosed amount, O'Reilly spokesman Mark Merz said.

VIP operates 56 stores in Maine, New Hampshire and Massachusetts, as well as a distribution center in Maine. When finalized, VIP will continue to own and operate the tire and service components of its business, and O'Reilly will take over the company's auto parts retail and distribution operations.

Merz said all VIP stores would transition to the O'Reilly flag after the sale is finalized, and the Springfield company would share the buildings with VIP - as it continues to operate its tire and service operations within the properties. He added O'Reilly will take over ownership of VIP's distribution center.

"The opportunity is to start to get a foothold in the Northeast, where we don't have a presence at all at this time," Merz said, noting O'Reilly currently comes closest to New England in the Ohio Valley area.

With the completion of the acquisition, O'Reilly will operate in 42 states, Merz said.

O'Reilly recorded third-quarter net income of $148.4 million, a 27.4 percent increase compared to earnings of $116.5 million in the same quarter last year. Merz said financial details of the acquisition could surface when O'Reilly releases its fourth-quarter results in February.  

As of 10:09 a.m., the company's shares were trading at $91.59, compared to a 52-week range of $75.61 to $107.13.