Yahoo Finance AutoZone (AZO) Inks Deal to Sell IMC to Parts Authority
AutoZone, Inc. AZO has signed a definitive agreement to sell Interamerican Motor Corporation ("IMC"), to the Parts Authority. IMC is America’s leading distributor of OE quality import replacement parts. Further, it operates through a total of 26 locations in nine states of the United States.
Earlier in 2014, IMC was acquired by AutoZone from Wulf Gaertner Autoparts AG. Through the acquisition, AutoZone had anticipated that IMC’s leading position in the imported car-parts business and operational expertise would assist the company to widen its footprint and enhance customer service.
However, the divestiture of IMC by AutoZone reflects its intention to focus on the growth of its core businesses, which include the Do-It-Yourself ("DIY") retail and Do-It-for-Me ("DIFM") auto parts and products business.
AutoZone, Inc. Price and Consensus
AutoZone, Inc. Price and Consensus | AutoZone, Inc. Quote
The new acquirer, Parts Authority, is among the largest distributors of automotive parts that cater the aftermarket all over the United States. The buyout of IMC will support Parts Authority’s growth of product offerings, customer base and further expansion in the country.
Price Performance
In the last six months, shares of AutoZone have outperformed the industry it belongs to. During the period, the company’s stock has rallied 25.3% in comparison to the industry’s growth of 23.6%.
Zacks Rank & Other Key Picks
AutoZone has a Zacks Rank #2 (Buy). A few other top-ranked stocks in the auto space are Standard Motor Products, Inc. SMP, PACCAR, Inc. PCAR and AB Volvo VLVLY, each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Standard Motor has an expected long-term growth rate of 6%. Over a month, shares of the company have gained 0.5%.
PACCAR has an expected long-term growth rate of 10%. In the last six months, shares of the company have gained 9.3%.
Volvo has an expected long-term growth rate of 15%. Over a year, shares of the company have gained 43.3%.
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