O’Reilly could finish CSK merger today

Springfield-based O’Reilly in April announced it would acquire CSK, a Phoenix-based auto parts retailer, for $500 million and assume another $500 million in debt. O’Reilly would gain a more national presence, with CSK’s approximately 1,300 stores primarily in the western half of the country joining O’Reilly’s 1,800 stores situated in the Midwest and South.

O’Reilly’s exchange offer to CSK shareholders expired at midnight Thursday, with 38.09 million shares validly tendered and not withdrawn, according to a news release. Combined with shares O’Reilly previously owned, O’Reilly now has about 40.25 million shares, or 90.5 percent, of CSK’s issued and outstanding common stock.

The CSK shares were each exchanged for 0.4285 of an O’Reilly share, plus $1 in cash.

Later today, O’Reilly intends to complete a short-form merger of its indirect wholly owned subsidiary with CSK, with CSK continuing as the surviving corporation and operating as a wholly owned subsidiary of O’Reilly, the release said. Remaining CSK shares then would each be converted to 0.4285 of O’Reilly shares, plus $1 per share.

Following today’s merger, CSK common stock (NYSE: CAO) will no longer be traded on the New York Stock Exchange, the release said.

O'Reilly shares (Nasdaq: ORLY) closed Thursday at $22.98 and were trading at $22.24 as of 11 a.m.[[In-content Ad]]