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The Big Get Bigger

Tags: AutoZone, Advance Auto Parts, CarQuest, Federated, Pronto, Remy, Icahn, The Pep Boys, Borg Warner

The AfterMarket is changing.   It has been consolidating for years now but it seems though it has been accelerating at an ever-increasing rate.  The Big are Getting Bigger.  Two years ago Advance entered into a deal to buy CarQuest and WorldPac.  Not to be outdone, AutoZone bought IMC.  Federated and Pronto merged last December. Earlier this year Uni-Select USA was purchased by Icahn Enterprises, LP. 

And most recently, Remy International ($1.2B) was sold to Borg Warner ($8B+) marking it a $10B+ company.  The Pep Boys entered into an agreement to be sold to Bridgestone for $835M adding to its market cap of nearly $30B.

Like it or not this trend will continue.  It is a bit daunting for small and medium sized business owners to navigate the waters of the AfterMarket today when companies of this size can change your business model in an instant.  I'd like to hear your concerns on this topic.  Feel free to post your thoughts.

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