Apache employee-owners including CEO Tom Pientok are shown breaking ground on a 90,000-square-foot expansion project in 2015. CREDIT APACHE
By Dave DeWitte
Apache Inc., the Cedar Rapids-based supplier of industrial belts and hoses, will become part of a business family that includes auto parts giant NAPA under a deal announced last week.
Motion Industries, a subsidiary of publicly traded Genuine Parts Co., has reached a definitive agreement to acquire Apache in a deal expected to close Nov. 1. The sale was announced simultaneously with a deal for Genuine Parts to acquire Monroe Motor Products, a regional auto parts distributor based in Rochester, New York.
Motion Industries is a leading distributor of industrial parts and has a long supplier-distributor relationship with Apache, the companies said in a press release.
Apache President and CEO Tom Pientok said in a press release that the companies are an excellent cultural fit, and that becoming part of Motion will ensure Apache’s employees and customers will be well cared for in the future.
“We have had a great relationship with the Motion team for many years and this step is really a continuation of our growth strategy,” Mr. Pientok said. “We will preserve and build on the long-standing reputation of the Apache name and we’ll now have access to greater capabilities for accelerated growth.”
Founded in 1963, Apache has added a Dallas facility and undertaken a project to double its capacity in Cedar Rapids in recent years. The employee-owned company was ranked No. 12 on the CBJ’s Largest Privately Held Companies list in 2016. It had about 139 local employees before the expansion, which was expected to add about 15.
The Apache acquisition will add about $100 million in revenue to Motion Industries while the Monroe Motor Products acquisition will add about $25 million.
Genuine Parts had annual revenues of $15.3 billion in fiscal 2016, and sales for the first three quarters of fiscal 2017 are up 4.7 percent from the same period of fiscal 2016. Financial terms of the deal were not disclosed.