Genuine Parts Announces Strategic Agreement with Inenco Group
This agreement provides numerous synergies between Motion Industries and Inenco Group in the industrial MRO category, through many shared customers and strategic suppliers.
Motion Industries, a leading distributor of industrial maintenance, repair, and operation replacement parts, is pleased to announce that Genuine Parts Company (GPC) has entered into a strategic agreement in the Australasian market with Inenco Group, a leading industrial distributor in Australia and New Zealand. Per the accompanying GPC press release, GPC will own 35 percent of Inenco Group, with the option to purchase the remaining shares at a later date.
Inenco Group, founded in 1954 and headquartered in Sydney, Australia, is one of Australasia's leading industrial distributors of key product categories such as bearings, power transmission and seals. It has 161 locations across Australia and New Zealand as well as an emerging presence in Asia, and generates estimated annual revenues of approximately $325 million (US).
Paul Donahue, president and chief executive officer, stated, "The Inenco investment offers Genuine Parts Company the opportunity to build on its presence in Australasia and join with a leading industrial distributor in the large and growing Australasian marketplace. Led by an experienced and talented management team, Inenco is a market leader with a long and successful history, world class supplier partners and an extensive and diverse customer base. We are excited for both the automotive and industrial growth prospects in this geography and are confident that our investment in Inenco will serve to benefit our shareholders over the long-term."
This agreement provides numerous synergies between Motion Industries and Inenco Group in the industrial MRO category, through many shared customers and strategic suppliers. Tim Breen, Motion Industries' president and CEO, commented, "This is an exciting time for both Motion Industries and Inenco. Our two companies have had a very good peer-to-peer relationship over the years, sharing best practices and distribution strategies. Now as part of the same parent company, we will be able to further leverage synergies to better take care of common customers and to expand our relationships with strategic suppliers throughout North America, Australia and New Zealand."
According to Roger Jowett, Inenco Group CEO, "Having the ability to work closer with the Motion Industries team, implementing new technologies and the ability to take advantage of additional scale offered by Motion Industries will better position Inenco Group for future growth. We look forward to the new opportunities afforded us through this new partnership."