O'Reilly to acquire CSK for $1 billion

SPRINGFIELD, Mo. and PHOENIX O’Reilly Automotive reported Tuesday, April 1, that it has agreed to acquire all of the outstanding shares of CSK common stock pursuant to an exchange offer, in a transaction valued at approximately $1 billion, including approximately $500 million of debt. The boards of directors of both companies have approved the transaction.

Under the terms of the agreement, CSK shareholders will receive $11.00 of O’Reilly common stock, subject to a collar, plus $1.00 in cash for each share of CSK common stock.

“Today is an exciting day for both O’Reilly and CSK shareholders,” stated O’Reilly Automotive ceo Greg Henslee. “As a combined company, we will be even stronger and more competitive, with the ability to better meet the continuing evolution of the automotive aftermarket industry. Additionally, we are creating a company that will generate significant value for the combined companies’ shareholders, growth opportunities for team members and enhanced service to our customers.” 

Following the close of the transaction, O’Reilly will be the third largest national auto parts retailer with approximately 3,200 stores located across the United States. The combined company had pro forma revenues of approximately $4.4 billion in 2007.