RTTNews | Jun 28, 2021 12:27AM EDT

00:26 Monday, June 28, 2021 (RTTNews.com) - Dorman Products, Inc. (DORM) announced that it has agreed to acquire Dayton Parts for $338 million. The transaction, which is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, is expected to close in the second half of 2021.

Dorman Products expects the acquisition is expected to be immediately accretive to adjusted diluted earnings per share, excluding one-time charges and acquisition-related intangible assets amortization.

The acquisition is expected to significantly expand Dorman's heavy-duty manufacturing and distribution platform, providing strategically placed distribution centers closer to wholesale distributors throughout the United States and Canada.

In connection with the transaction, Dorman expects to enter into a new $600 million revolving credit facility. Borrowings under this new credit facility that are used to complete the transaction will result in net leverage of less than 1.0x.

Until the transaction closes, both companies will operate independently and execute on their respective strategic priorities.

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