Advance Auto Parts Sells Brazil JV Stake for $10M

TL;DR

AAP selling Brazil JV for $10M to focus on North America.

AI Summary

Advance Auto Parts, Inc. announced on May 23, 2024, that it has entered into a definitive agreement to sell its remaining 1.5% interest in its Brazil joint venture to Grupo El Peñon for $10 million. This transaction is expected to close in the third quarter of 2024 and is part of the company's ongoing strategic review to optimize its portfolio.

Why It Matters

This divestiture allows Advance Auto Parts to further streamline its operations and focus on its core North American business, potentially improving financial performance.

Risk Assessment

Risk Level: low — The sale of a non-core asset for a relatively small amount is unlikely to pose significant risks to the company.

Key Numbers

• $10 million — Sale Price (Proceeds from the sale of the Brazil joint venture interest.)
• 1.5% — JV Stake (Percentage of the Brazil joint venture being sold.)

Key Players & Entities

• Advance Auto Parts, Inc. (company) — Seller
• Grupo El Peñon (company) — Buyer
• May 23, 2024 (date) — Announcement Date
• 1.5% (percentage) — Ownership stake sold
• $10 million (dollar_amount) — Sale price
• third quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value AAP New York Stock Exchange
• $3 million — s to record an expense of approximately $3 million for the quarter ending July 13, 2024 fo

Filing Documents

• aap-20240523.htm (8-K) — 27KB
• aap-20240523_g1.jpg (GRAPHIC) — 191KB
• 0001158449-24-000162.txt ( ) — 623KB
• aap-20240523.xsd (EX-101.SCH) — 2KB
• aap-20240523_lab.xml (EX-101.LAB) — 22KB
• aap-20240523_pre.xml (EX-101.PRE) — 12KB
• aap-20240523_htm.xml (XML) — 3KB

01. Other Events

Item 8.01. Other Events. On May 23, 2024, Advance Auto Parts, Inc. (the "Company") identified unauthorized activity within a third-party cloud database environment containing Company data and launched an investigation with industry-leading experts. On June 4, 2024, a criminal threat actor offered what it alleged to be Company data for sale. The Company has notified law enforcement. There has been no material interruption to the Company's business operations due to the incident. Based on the review of files determined to have been impacted, the Company believes that some files contain personal information, including but not limited to social security numbers or other government identification numbers of current and former job applicants and employees of the Company. The Company anticipates providing notice of the incident, in accordance with its legal obligations and will offer free credit monitoring and identity restoration services as appropriate. The Company has insurance for cyber incidents and currently expects its costs related to response and remediation to be generally limited to its retention under such policy. The Company currently plans to record an expense of approximately $3 million for the quarter ending July 13, 2024 for such costs. The information provided in this Current Report on Form 8-K is preliminary and is based on currently available information and is subject to change during the course of the Company's ongoing investigation of the incident.

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast, "guidance," "intend," "likely," "may," "plan," "position," "possible," "potential," "probable," "project," "should," "strategy," "will," or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the Company's beliefs regarding and assessment of the incident, the volume and the nature of the files determined to be impacted files and their contents, our plans, including our plans to provide notices and services to impacted persons, our estimate of the financial impact expected in the quarter ended July 13, 2024, the Company's ability to obtain coverage under its insurance policies for the incident, and statements regarding underlying assumptions and determinations related to the incident. Forward-looking statements are based on the Company's current beliefs, understandings and expectations regarding the incident and its impact on the Company's business, operations, and financial results. Factors that could cause actual results to differ materially from those expressed or implied include the Company's discovery of additional or different information related to the incident, legal, reputational, and financial risks resulting from the incident, any potential regulatory inquiries, enforcement actions, demands and/or litigation to which the Company may become subject in connection with the incident, any disputes or loss of business, and other additional costs that may be incurred by the Company in connection with the incident, as well as the risks set forth in "Item 1A. Risk Factors" of the Company's most recent Annual Report on Form 10-K filed with the Securities and Ex

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ADVANCE AUTO PARTS, INC. (Registrant) Date: June 14, 2024 /s/ Elizabeth E. Dreyer Elizabeth E. Dreyer Senior Vice President, Controller and Chief Accounting Officer

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View this 8-K filing on SEC EDGAR