Toronto, Ontario -- In this week’s Tuesday Ticker, Parker Hannifin moves to expand its aftermarket footprint with a multi-billion-dollar acquisition, Forvia reshapes its portfolio through divestitures and Advance Auto Parts reports improving margins as its turnaround continues — and much more!
Major acquisition
On Nov. 11, Parker Hannifin, an industrial motion-and-control manufacturer based in Mayfield Heights, Ohio, announced a US$9.25 billion agreement to acquire Filtration Group.
According to the company, the move was meant to expand its recurring aftermarket revenue by adding a filtration business expected to generate roughly US$2 billion in annual sales (about $2.80 billion).
Shares moved from US$861.70 (about $1,205.40) to US$863.68 (about $1,207.50), a gain of US$1.98 (about $2.75), or about 0.2 percent.
Parker Hannifin's filtration supplies replacement components used in vehicle maintenance and repair companies.
Interior Divestment
On Nov. 28, Forvia, an automotive components supplier based in Nanterre, France, announced that it would begin divesting parts of its car interiors division.
Forvia is a large global automotive systems and components supplier that builds seats, interior modules (dashboards, centre consoles, door panels), electronics, lighting, emission-control and other systems.
According to the company, the move is meant to reduce debt and streamline its portfolio by shedding assets such as dashboards, door panels and centre consoles. Markets have yet to respond to the move. Its interior and cockpit systems are widely used by OEM supply chains and, downstream, affect availability and pricing of replacement parts.
Some of the OEMs cited as customers of Forvia include Volkswagen Group, Stellantis, Ford, Renault–Nissan–Mitsubishi Alliance, Mercedes‑Benz Group, BMW, General Motors, Hyundai‑Kia, Toyota and BYD.
Advancement for Advance
On Oct. 29, Advance Auto Parts in Raleigh, North Carolina, a company that provides replacement parts, batteries and maintenance products to professional repair shops and do-it-yourself customers, announced third-quarter results showing improving margins.
According to the company, the move was meant to highlight progress in its turnaround strategy by tightening sourcing and adjusting its store footprint. Shares moved from US$51.88 (about $72.53) to US$53.60 (about $74.87), a gain of US$1.72 (about $2.40), or about 3.3 percent.
Exceeding Expectations
On Nov. 30, O’Reilly Automotive, a major aftermarket retailer by supplying repair shops and consumers with replacement components, tools and diagnostic products that is based in Springfield, Missouri, announced quarterly results that beat its internal expectations, with revenue rising nearly eight percent year-over-year.
According to the company, the growth was meant to reflect steady demand across both professional and do-it-yourself categories. Shares moved from US$101.70 (about $142.17) to US$101.94 (about $142.61), an increase of US$0.24 (about $0.34), or about 0.2 percent.
