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Shifting Gears: Advance Auto Parts looking to sell Worldpac in Q2, says CEO

Toronto, Ontario — During the fourth quarter and full-year results call for 2023, Advance Auto Parts CEO Shane O’Kelly provided information on the potential sale of its Worldpac and its Canadian business, operating as Carquest Canada.

O’Kelly specifically emphasized in an official release that Advance is still officially referring to the Worldpac and Canadian business as a “potential sale process,” and O’Kelly further added that there has been significant interest, with initial focus on the Worldpac business.

“The Worldpac process is underway and we are actively engaging with potential buyers. We currently expect to conclude the Worldpac process during our second quarter and look forward to sharing more information when that occurs,” O’Kelly said.

“As it relates to the Canadian process, this is intentionally sequenced behind Worldpac and we have begun the internal work to explore separating the business.”

Newly appointed CFO Ryan Grimsland offered additional insight by stating that, “Worldpac a good business with good team members. This isn’t a fire sale. There’s no sort of urgency that we have to sell the business. It’s really around strategy and where we’re taking the company. We believe that the blended box model is our route to success, selling a pro and DIY customer from our core stores. And so that strategic review led to the idea of selling Worldpac, which I think is the right move for the organization. So there’s not a, as it relates to value maximization, we don’t have to sell. And that’s why we say it’s a potential sale process. The good news is the interest thus far has been significant. We’re seeing a lot of players, both breadth and depth of players who are expressing interest.”

Grimsland also noted that it’s too early to give a definitive picture of what Advance will do with the proceeds of the Worldpac sale, “but we feel good in the wake of that sale process if it goes through. We have a company that’s focused on selling auto parts out of a blended box. That’s what we’re going to do.”

 

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