US automotive replacement parts retailer Advance Auto Parts Inc is buying General Parts International Inc, for $US2.04 billion ($A2.15 billion) in cash.
AAP reports that, as a result, Advance Auto will get 1,246 company operated stores and 1,418 independently owned Carquest locations.
According to Advance Auto, the purchase will make it the largest automotive replacement parts provider in North America.
General Parts distributes and supplies original equipment and aftermarket replacement products for commercial markets. The company offers the Carquest and Worldpac brands.
As Reuters reports, the purchase would mean that the company has combined annual sales of $9.2 billion. This figure is slightly higher than those of AutoZone Inc, which is currently the largest automotive replacement parts provider in North America.
Advance Auto said it expects to save about $160 million annually within three years of the deal closing, scheduled for late 2013 or early 2014.
The company will finance the transaction with cash and debt. It said it has received financing commitment from JPMorgan Chase Bank NA.