## Carlyle's $1.5B Worldpac Acquisition: Game-Changing Move in Automotive Aftermarket

Carlyle has just sealed a major deal, acquiring Worldpac from Advance Auto Parts for $1.5 billion in an all-cash transaction set to close by year-end. This isn't just another M&A headline—it signals a significant reshuffling in the automotive parts distribution landscape.

**Why This Deal Matters**

The Worldpac sale represents a strategic pivot for Advance Auto Parts. CEO Shane O'Kelly framed it as a way to sharpen focus on the company's core blended box business while unlocking much-needed financial firepower. The net proceeds of approximately $1.2 billion (after taxes and fees) will go toward strengthening the balance sheet and accelerating operational improvements across remaining assets.

For Carlyle, the bet is equally calculated. The global investment giant, which manages $435 billion in assets, sees Worldpac as a standalone winner in attractive distribution markets. The acquisition builds on Carlyle's proven expertise in industrial carve-outs—the firm has deployed roughly $13 billion across similar deals over the past 20 years, backing companies like Axalta, Nouryon, and Atotech.

**The Numbers Behind the Deal**

Worldpac brought serious revenue to the table. Over the past 12 months through Q2 2024, the business generated approximately $2.1 billion in annual revenue with roughly $100 million in EBITDA. Those metrics validate Carlyle's confidence in the asset's standalone viability and growth potential.

Advance currently operates 4,776 stores plus 321 Worldpac branches across North America, alongside 1,138 Carquest-branded franchises. Spinning off Worldpac allows Advance to concentrate resources on consolidating and optimizing its remaining operations.

**What's Next**

This transaction exemplifies how private equity firms are increasingly targeting industry carve-outs—extracting high-performing divisions and repositioning them as independent platforms. Worldpac's wholesale distribution model, combined with Carlyle's operational playbook and capital resources, could unlock significant value creation.

The deal also reflects broader dynamics in the automotive aftermarket: consolidation pressure, need for operational efficiency, and investor appetite for recurring-revenue businesses with resilient demand drivers. Worldpac's 5,000+ team members now operate under new ownership with backing designed to fuel expansion.

Expect this transaction to set a template for how mature players like Advance reconfigure their portfolios for targeted growth in a competitive landscape.