Is Advance Auto Parts a Target for Takeover by Competitors?
submitted on November 17, 2012 by HouTex in "Stores / Merchants"
Could that mean the end of some really good coupons? According to a Bloomberg article published this week, the Advance Auto Parts has had a couple of declining quarterly profit reports at a time when the outlook is generally good for car parts stores. Since the age of U.S. vehicles is at a record high, so is the need for maintenance.
With the least net debt versus market value in the industry, the $5.7 billion company looks like a leveraged-buyout candidate, said ISI Group. AutoZone Inc. (AZO) and O’Reilly Automotive Inc. (ORLY), Advance Auto’s bigger competitors, may view buying it as an inexpensive way to expand, according to Argus Research Co.