Roanoke, Virginia, July 23, 2002 – Advance Auto Parts, Inc. (NYSE: AAP) announced today that it has received bankruptcy court approval to acquire certain assets of Trak Auto Corporation (Trak), including the leases on up to 55 stores operated by Trak in northern Virginia, Washington D.C. and eastern Maryland. The closing is scheduled to occur by July 29, 2002, although the transfer and conversion of these stores will take place over the next three to four months.
“We are excited about the opportunity to expand our presence and serve more customers in the metropolitan Washington D.C. area, as well as the surrounding communities.” said Larry Castellani, Chief Executive Officer of Advance. “We are looking forward to more effectively serving the Do-it-Yourself customer, as well as the professional installer, from approximately 75 locations in these markets. We are also pleased to welcome the Trak store team members who will be joining Advance Auto Parts.”
The terms of the agreement provide that Advance Auto Parts will assume the existing leases on the acquired stores and will pay up to $16 million for inventory and fixtures.
The acquisition of these approximately 50 stores will take the place of new store openings, and consequently, Advance Auto Parts maintains its 2002 total new store opening plan of 100 to 125 stores. The funds for this transaction, including any conversion costs, are included in the Company's existing capital expenditures budget. The conversion and re-branding of the stores is expected to begin by early September and be completed before the end of 2002.
The integration of the Discount Auto Parts stores, acquired in November 2001, continues on plan and the conversion of the Trak Stores will not impact that integration. 108 of the 189 Discount Auto Parts stores in Georgia, Mississippi, Alabama, the Florida Panhandle, Louisiana and South Carolina have been converted to Advance Auto Parts stores to date and the remainder will be completed by the end of the year. Merchandise conversions in the Florida markets will be completed before the end of the third quarter. The Discount Auto Parts stores have continued to perform well during the integration process.
Advance Auto Parts, Inc. is based in Roanoke, Va., and is the second largest auto parts chain in the nation. With approximately 2,400 stores in 38 states, Puerto Rico and the Virgin Islands, the Company serves both the do-it-yourself and professional installer markets. Additional information about the Company, employment opportunities, services, as well as on-line purchase of parts and accessories can be found on the Company's web site at www.advanceautoparts.com.
Advance Auto Parts
Certain statements contained in this news release are forward-looking statements. These statements discuss, among other things, expected growth, store development and expansion strategy, business strategies, future revenues and future performance. These forward-looking statements are subject to risks, uncertainties, and assumptions including, but not limited to, competitive pressures, demand for the Company's products, the market for auto parts, the economy in general, inflation, consumer debt levels, the weather, and other risk factors listed from time to time in the Company's filings with the Securities and Exchange Commission. Actual results may materially differ from anticipated results described in these forward-looking statements.