O'Reilly Automotive looks to buy CSK Auto

SPRINGFIELD, Mo. O’Reilly Automotive said today that it has expressed interest in acquiring all of the outstanding shares of CSK Auto common stock for $8.00 per share in cash. The transaction is valued at approximately $845 million, which includes the assumption of about $490 million of CSK debt.

According to O’Reilly Automotive, the proposal represents a 34% premium over CSK’s closing stock price on Thursday, Jan. 31, as well as a 63% premium over the average trading stock price for CSK over the last thirty days.

"The benefits of our proposed transaction are very compelling and offer significantly more security to CSJ stockholders, creditors, suppliers and partners than CSK on a standalone basis," O’Reilly ceo Greg Henslee said in a letter to CSK ceo Lawrence Mondry.

Henslee went on to detail how the merger would create the third largest auto parts retailer in the country. "Building upon the foundation of CSK's Western presence and O'Reilly's Midwestern and Southeastern presence, the combined company would be positioned to further leverage O'Reilly's very effective dual-market strategy," Henslee said.