Genuine Parts Was the S&P 500’s Top Gainer on September 25

Wall Street Pulled Back on September 25, Decreased Risk Appetite PART 2 OF 5

Top gainers

The S&P 500’s top gainers on September 25, 2017, were:

  • Genuine Parts (GPC) rose 6%.
  • CenturyLink (CTL) rose 4.3%.
  • Helmerich & Payne (HP) rose 3.8%.
  • Hess (HES) rose 3.6%.
  • Chesapeake Energy (CHK) rose 3.6%.

Genuine Parts 

Genuine Parts produces replacement parts for automobiles and industrial purposes, office products, and electronic materials in the US. It was the S&P 500’s top gainer on Monday. Genuine Parts rose on September 25 amid the announcement of its merger with Alliance Automotive Group.

According to the announcement, Genuine Parts is acquiring Alliance Automotive Group for $2 billion. The deal also includes repaying Alliance Automotive Group’s outstanding debt. Alliance Automotive Group is a European distributor of light and commercial vehicle parts, equipment, and tools with 7,500 employees. The acquisition is expected to close in 4Q17. The acquisition is expected to increase Genuine Parts’ 2018 earnings by $0.45–$0.5.

Alliance Automotive Group is the second-largest automotive parts distributor in Europe. It’s expected to generate revenues of $1.7 billion in 2017. Blackstone Group, one of the leading investment firms in the world, acquired Alliance Automotive Group for 440 million euros in August 2014. Commenting on the new acquisition deal, Blackstone Group said that Alliance Automotive has grown into a leading European distributor in the last three years. It expects Genuine Parts to help Alliance Automotive to continue on its growth path.

Amid the improved sentiment, Genuine Parts rose 6% on Monday and closed the day at $93.22—the highest close since July 3.

In the next part, we’ll discuss how CenturyLink and Helmerich & Payne performed on September…

Article Source…

Leave a Reply

Your email address will not be published. Required fields are marked *