Benzinga | Jun 28, 2021 07:15AM EDT

Dorman To Acquire Dayton Parts For $338M

* Dorman Products Inc (NASDAQ:DORM) has agreed to acquire automotive parts manufacturer Dayton Parts LLC for $338 million.

* The transaction is expected to close in the second half of 2021.

* With Dayton generating $168 million in net sales for the twelve months ended December 2020, Dorman expects Dayton's acquisition will be immediately accretive to adjusted diluted earnings per share.

* The acquisition would expand Dorman's heavy-duty manufacturing and distribution platform.

* "Through the combined company, we will be able to offer our increasingly diverse customer base a more expansive product offering with improved distribution efficiency," said Kevin Olsen, Chief Executive Officer, Dorman.

* Dorman will enter into a new $600 million revolving credit facility in connection with the transaction.

* Dorman's cash and equivalents totaled $166.6 million as of March 31, 2021.

* Price action: DORM shares closed higher by 1.3% at $100.2 on Friday.