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By Counterman
Arnold Motor Supply recently purchased Sioux City, Iowa-based Motor Parts Central and its sister company Northern Auto Parts.
The purchase will allow the company to expand its inventory and distribution in the region.
“The move from our old location in Sioux City to the Motor Parts Central building increases our retail and distribution space by 130,000 square feet,” says Eric Johnson, president and managing partner for Arnold Motor Supply. “The Sioux City location will now serve as a distribution hub for our surrounding parts stores.”
Northern Auto Parts will continue to operate within the same building and is a different type of expansion for the company. Northern is a national online retailer, specializing in engine-rebuild kits and engine parts.
“For years, we’ve provided engine rebuilding and restoration through our machine shops, so adding the expertise of the Northern Auto Parts team is a great addition for our customers,” Johnson said.
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By Counterman
O’Reilly Automotive has begun construction of its first distribution center in Mexico, company executives announced.
The company’s first “O’Reilly-prototype” DC, located in Guadalajara, will boast a footprint of approximately 370,000 square feet, according to O’Reilly COO Brad Beckham.
Beckham noted that O’Reilly is “targeting a completion date of the first half of 2023.”
“This new facility will have the ability to provide company-store and jobber distribution to the Guadalajara metro area and support growth in the surrounding region,” Beckham explained during the company’s April 28 conference call. “Our distribution teams are well-seasoned in the design, planning and construction of new facilities, and we have been very pleased with our progress in working with our leadership team in Mexico to get this project rolling in true O’Reilly fashion.”
Company leaders “continue to be excited about the growth opportunities we see in the Mexican automotive aftermarket,” Beckham added.
In late 2019, O’Reilly acquired Guadalajara-based Mayasa Auto Parts, the company’s first foray into the Mexican aftermarket. At the time of the acquisition, Maya operated five distribution centers supporting 20 Orma Autopartes stores and more than 2,000 independent jobbers throughout Mexico.
O’Reilly CEO Greg Johnson said the company’s strategy in Mexico mirrors its strategy in the United States, and company leaders are “happy with our progress in Mexico.”
“We want to make sure we’ve got the supply chain infrastructure in place before we really ramp up our store growth at a more aggressive pace, because we want that customer experience to be what it’s going to be long-term,” Johnson explained. “And we want that service level from our DC for our professional customers to be at the very highest level from Day 1. So we’re growing the market incrementally.”
As part of its strategy, O’Reilly will continue to operate under the Mayasa/Orma brand, at least for now, according to Johnson.
“We’ll transition [to O’Reilly] over time,” Johnson added.
Asked about the growth potential in the Mexican aftermarket, Johnson referenced “one of our major competitors” – AutoZone – which had 669 stores in Mexico as of Feb. 12.
Johnson concluded: “We feel like there’s a pretty big opportunity to grow our store count somewhere in that range in Mexico as well.”
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By Counterman
Hahn Automotive Warehouse announced the closing of its acquisition of Carparts Distribution Center.
Stan Lewis, president of Carparts, will continue with the company as general manager for the New England store group.
Carparts has its main warehouse in Plaistow, New Hampshire, along with 20 jobber/retailer stores in New Hampshire, Massachusetts and Maine.
“We are excited to be expanding our footprint in the New England area with a family-owned business with similar values and business practices as Hahn,” said Daniel Chessin, co-president and CEO of Rochester, New York-based Hahn.
Hahn and Carparts are members of the Aftermarket Auto Parts Alliance.
“With the acquisition of Carparts, we are able to strengthen the Auto Value brand and expand our product offering to ensure that our customers are supplied with the parts they need,” said Eli Futerman, co-president and CEO of Hahn.
Lewis added: “We are extremely pleased to be joining Hahn as this combination provides significant opportunities for growth for our customers throughout the New England area.”
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By Auto News
Strategic and Highly Synergistic Transaction Creates a Premier Leader in Industrial Solutions
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