Advance Auto Parts has agreed to sell Worldpac, its automotive parts wholesale distribution unit, to The Carlyle Group for $1.5 billion in cash, as carveouts fall slightly from their recent peak.
The deal will allow Advance to focus on its core business and free up financial flexibility, while Caryle expects to apply its expertise with carveouts, particularly in the industrials sector, to the unit that generated $2.1 billion in revenue and around $100 million in EBITDA in the twelve months through the end of Q2.
The transaction comes as carveouts’ share of total PE buyouts declined from a Q1 peak of 11.7% to 10.3% last quarter, according to data featured in PitchBook’s latest US PE Breakdown. The rate is expected to stabilize at around 10%, aligning with the 10-year average as traditional buyouts reemerge.
Carlyle has been active in carving out industrial assets, allocating $13 billion to the strategy over the past two decades, with notable deals including Axalta, Atotech and Signode.
The PitchBook report also features data from DealEdge, which notes that the multiple on invested capital for the top quartile of industrial deals outperformed those in healthcare, consumer and business services between 2018 and 2024.
Centerview Partners acted as financial adviser and Hogan Lovells as legal adviser to Advance. Carlyle worked with Bank of America Securities as lead financial adviser alongside BMO Capital Markets, and Latham & Watkins served as legal adviser.
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