On August 22, 2024, Advance Auto Parts, Inc. (NYSE: AAP) entered into a definitive agreement to sell Worldpac, Inc., its automotive parts wholesale distribution business, to Carlyle (NASDAQ: CG) for US$1.5 billion (approximately $2 billion CAD at the time) in cash. The deal was expected to close by the end of 2024. This divestiture allowed Advance to focus on improving its core business while providing financial flexibility for future growth.

Worldpac, which operates in Canada, distributes automotive parts to repair shops and dealerships across the country. Advance Auto Parts also served Canadian customers, contributing to its North American footprint. Carlyle, with significant investments across various sectors in Canada, aimed to support Worldpac’s continued growth as an independent company.

Worldpac, which generated US$2.1 billion (about $2.8 billion CAD) in revenue and US$100 million (around $134 million CAD) in EBITDA over the past year, was set to continue its Canadian operations under Carlyle’s ownership. Advance expected net proceeds of US$1.2 billion (approximately $1.6 billion CAD) after taxes and transaction fees. Centerview Partners served as financial advisor and Hogan Lovells US LLP as legal advisor to Advance. Carlyle was advised by BofA Securities and BMO Capital Markets as financial advisors, with Latham & Watkins providing legal counsel.

This transaction expanded Carlyle's presence in Canada, where it had invested in multiple industrial companies.