Genuine Parts' Europe Unit Completes PartsPoint Acquisition

Genuine Parts Company’s (NYSE:GPC) U.K.-based wholly-owned automotive distribution company, Alliance Automotive Group (“AAG”), completed the acquisition of PartsPoint Group (PartsPoint) on Jun 4, 2019. The Netherlands-based acquired company deals with automotive aftermarket parts and accessories, with presence across Netherlands and Belgium.

The acquisition of PartsPoint will support the Europe expansion of AAG. Addition of the Dutch company in the portfolio will provide opportunities to increase Genuine Parts’ footprint in the Benelux marketplace over the years to come.

Genuine Parts regularly undertakes acquisitions to improve product offerings and expand the geographical footprint. The acquisition of AAG in November 2018 is helping the company witness robust sales and operational results. In order to keep growing in Europe, its subsidiary, AAG, is undertaking acquisitions that are expected to favorably impact sales across Europe.

Genuine Parts Company Price and Consensus

In February 2019, the company announced about the acquisition of Axis New England and Axis New York. With an effective close date of Mar 1, 2019, the buyout is part of the company’s Industrial segment.

Price Performance

Year to date, shares of Genuine Parts have gained 4.8% compared with the industry’s growth of 3.7%.

Zacks Rank & Stocks to Consider

Genuine Parts currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are Fox Factory Holdings Corporation (NASDAQ:FOXF) , Ford Motor Company (NYSE:F) and AB Volvo (OTC:VLVLY) . Fox Factory and Ford currently carry a Zacks Rank #2 (Buy) while Volvo sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fox Factory has an expected long-term growth rate of 16.4%. The stock has gained 9% in the past three months.

Ford has an expected long-term growth rate of 7.3%. The stock has gained 14.4% in the past three months.

Volvo has an expected long-term growth rate of 5%. Over the past six months, shares of the company have gained 12.4%.

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