PHOENIX-- CSK Auto Corp. , the parent company of CSK Auto Inc., a specialty retailer in the automotive aftermarket, announced today that it purchased Murray's Inc. and its subsidiaries for approximately $170 million cash (including amounts that were needed to repay Murray's existing indebtedness), subject to certain purchase price adjustments. The 110 Murray's automotive parts and accessories retail stores in Michigan, Illinois, Ohio and Indiana will retain the Murray's name and operating model.
Maynard Jenkins, chairman and chief executive officer of CSK Auto Corp., stated, "Through the tremendous efforts of its associates, Murray's has earned the reputation as the 'Midwest's #1 Auto Parts Store,' and we are thrilled to have Murray's associates join the CSK family. With this acquisition, Murray's will complement our existing operations and expand our market presence to 22 states."
Martin Fraser, president and chief operating officer, stated, "We look forward to a sharing of ideas and strategies with Murray's and are excited about the synergistic opportunities that are presented to us by this acquisition. Because our retail operating models are so similar, we see this acquisition as providing an extension of our footprint into new markets."
The company also announced that it completed the issuance by CSK Auto Inc. of $85 million aggregate original principal amount of exchangeable senior unsecured notes in a private offering. Proceeds from the note offering were used to fund a portion of the acquisition, with the balance of the acquisition costs funded via availability under CSK Auto Inc.'s existing senior credit facility.
The notes offered and the common stock issuable upon exchange of the notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements and applicable state securities laws.
CSK Auto Corp. is the parent company of CSK Auto Inc., a specialty retailer in the automotive aftermarket. As of Dec. 1, 20059, 2005, CSK Auto Inc. operated 1,267 stores in 22 states
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