Advance Auto Parts Inc said it would be buying General Parts International Inc. The all-cash acquisition would have an enterprise value of USD 2.04 billion. Both firms provide aftermarket parts for the automotive industry.

The acquisition of the Roanoke, Virginia-based Advance Auto would include the Carquest chain in Canada. Carquest has 1,246 stores operated by the company in addition to 1,418 independently owned outlets. General Parts' Worldpac import and distribution network would also be included in the purchase.

Advance Auto said the acquisition would give them yearly savings and better revenues amounting to USD 160 million in three years after the deal would be completed. Both firms intended to complete the sale early next year.

Boards of both firms had already agreed to the deal. Advance Auto said the takeover would form the biggest automotive aftermarket parts firm in North America with sales anticipated to reach more than USD 9.2 billion. Advance Auto was advised by Blackstone and JP Morgan Chase on the deal.