Dividend favorite Genuine Parts Company (NYSE: GPC) announced a near $2B move to enter the European market with a deal to acquire Alliance Automotive Group; sending GPC shares up more than $5 or nearly 6% on the day.
While not cheap, I believe today’s deal makes the company even more attractive for the long-term investor looking for a well-run business operating in an attractive sector.
Check out my original post on GPC from October 2015:
Tuning Your Car’s Engine…And Your Portfolio.
Icahn ups the ante in battle for Pep Boys:
Billionaire investor Carl Icahn today raised his offer to acquire automotive parts and services chain Pep Boys (NYSE: PBY) to $16.50 per share in cash, trumping a rival offer of $15.50/share by Japanese tire giant Bridgestone.
Both Icahn and Bridgestone have very deep pockets and while its left to be seen how this battle plays out (Bridgestone has until December 23rd to propose a higher offer), those investors who bought into Pep Boys towards the end of last year as part of a long-term plan or short-term trading strategy are looking at a sweet gain of more than 60% should Icahn’s deal go through.
The long-term attractiveness of the automotive parts and services business together with potential synergies from each bidder’s respective existing businesses business undoubtedly led them to knock on Manny, Moe and Jack’s door, and while I did not make a call to go long Pep Boys, this whole scenario makes me feel more confident on the prospects of Genuine Parts Company (NYSE: GPC) as an attractive long-term investment.
If you have ever test-driven a new or used car in the U.S., U.K, or Germany…chances are good that the car was from a dealership operated by Penske Automotive Group, Inc. (NYSE: PAG), a Fortune 500 company with more than 300 franchises covering 40 different vehicle brands. Lets see if that glorious “new car” smell extends to PAG as a long-term investment shall we: Continue reading
Whether you do it yourself or go to a garage for help, every vehicle owner has been exposed to the myriad of parts a vehicle needs to keep running smoothly. Continue reading
The Security Whisperer 