Advance Auto Parts noted on Thursday that it would dispose of its division, Worldpac, to Carlyle Group, for USD 1.5 billion in cash, in its most recent effort at streamlining operations, Reuters reported. However, it slashed its annual results forecast, the newswire noted.
The transaction is slated to close by year-end, Reuters noted.
Advance Auto Parts has been feeling the heat from activist investors who have acquired stakes in the company, and are exerting influence to sell Worldpac, as the company attempts a turnaround, the newswire noted.
Advance Auto Parts roped in Centerview Partners as financial adviser, with Hogan Lovells offering legal advice.
Advance Auto Parts also slashed its annual sales and profit forecasts on the back of bumpy demand for auto parts, the newswire noted.
Worldpac was acquired by Advance Auto Parts in 2014, when it purchased General Parts International, Reuters reported. Worldpac garnered roughly USD 2.1 billion in revenues for the year ended June 30, the newswire further reported.