Johnnys Auto Repair to be acquired by R&H Auto Repair
Johnnies Auto Repair is expected to acquire R&HS Auto Repair in a deal valued at more than $5 billion, a person familiar with the matter said, according to people familiar with it.
Johnnys has about 1,200 employees and has been owned by a consortium of private-equity firms since 2013.
JohnnYS was a unit of Chrysler Automotive, which was sold to Fiat Chrysler Automobiles NV in 2015.
R&HT is a unit that also owns AutoZone, the chain of department stores and grocery stores that is owned by Johnnks parent company.
Johnns CEO John B. Sullivan told shareholders at a conference in March that the company expects to spend $6.3 billion on R&HH Auto Repair and $3.9 billion on Johnnx Auto Repair, its auto parts supplier, according the Wall Street Journal.
Johnny’s shares rose $1.19, or 3.3 percent, to $38.75 in afternoon trading on the New York Stock Exchange.
Johnnnys shares have gained more than 20 percent over the past year.
Johnnie’s Auto Repair operates three factories in Indiana, New Mexico and Ohio, and the company sells parts and accessories to Ford, GM, Toyota and Chrysler.
The deal could create the largest auto repair company in the United States, according a person with knowledge of the matter.
The deal is subject to regulatory approval, the person said.