CSK Auto

CSK Auto, Inc. was a specialty retailer of automotive parts and accessories in the western United States. CSK Auto became a publicly traded company in March 1998, headquartered in Phoenix, Arizona, and grew through a combination of acquisitions and organic growth. It was acquired in 2008 by O'Reilly Automotive.[1]

Operations

As of January 29, 2006, CSK operated 1,273 stores in 22 states spanning from Hawaii to Ohio, with principal concentration of stores in the Western United States. CSK operated its stores under four brand names:

In the mid-2000s, CSK operated five value concept retail stores under the Pay N Save brand name in and around Phoenix, Arizona. These stores sold primarily tools, hardware, sporting goods, housewares and other household goods, and seasonal items. To try and increase the tool business CSK built six stores that combined both auto parts and tools in MI, CO, WA and AZ. The company ceased operations of the Pay N Save stores on August 26, 2007.

CSK sponsored major league baseball in major markets throughout its trade areas,[2] the 2Xtreme Racing monster truck team and the funny car driven by Del Worsham in the National Hot Rod Association. CSK was designated the Official Auto Parts Store of the NHRA.[3][4]

CSK served both the do-it-yourself ("DIY") and the commercial installer, or do-it-for-me ("DIFM"), customer. The DIY market, which comprises customers who typically repair and maintain vehicles themselves, was the foundation of the business. The DIFM market comprised auto repair professionals, fleet owners, governments and municipalities.

History

CSK Auto experienced growth through a combination of acquisitions and a program of store construction and expansion. In 1997, CSK acquired 81 Trak Auto stores in Southern California, converting them to the Kragen name and product mix.[5][6] This led to an extremely productive year in 1998, as annual sales broke the $1-billion barrier for the first time, and the company opened, expanded, or relocated a total of 130 more stores.

In June 1999, CSK added 86 more Checker stores in the Northern Plains states by acquiring the Big Wheel/Rossi Auto Parts chain, and in October of that year CSK completed its acquisition of 194 Al's and Grand Auto Supply stores in Washington, California, Idaho, Oregon, Nevada, and Alaska,[7][8][9] solidifying its position as a retailer of automotive aftermarket parts and accessories in the western United States. To strengthen its position in the Northern Plains states, in April 2000, CSK purchased All-Car Distributors, operators of 21 stores in Wisconsin and one in Michigan.[10][11] These stores operated under the Checker banner.

On December 19, 2005, CSK announced it had completed the purchase of Murray's, Inc. and its subsidiary, Murray's Discount Auto Stores. The 110 Murray's automotive-part and accessory retail stores in Michigan, Illinois, Ohio and Indiana retained the Murray's name and operating model.

On April 1, 2008, O’Reilly Automotive, Inc. signed a deal to acquire all of CSK's common stock for approximately one billion dollars, including $500 million of debt.[1] Starting in 2009, O'Reilly gradually rebranded Checker Auto Parts, Schucks Auto Supply, and Kragen Auto Parts stores as O'Reilly Auto Parts stores during a multi-year process that was finally completed in 2011.[12]

On March 5, 2009 the SEC filed a civil injunction against 4 former members of CSK Auto. The former members were charged with accounting fraud for the years of 2002, 2003, and 2004.[13][14]

References

  1. 1 2 Fineman, Josh (April 1, 2008). "O'Reilly Automotive to Buy CSK Auto for $528 Million". Bloomberg. Archived from the original on November 26, 2014.
  2. ↑ "CSK Auto Offers 'Ultimate Baseball Road Trip'.". Business Wire (Press release). June 25, 2007 – via The Free Library.
  3. ↑ "NHRA sponsors". Archived from the original on 1999-08-24. Retrieved 2012-01-28.
  4. ↑ "NHRA sponsors". Archived from the original on 2008-05-15. Retrieved 2012-01-28.
  5. ↑ "Trak Auto to Sell 80 California Stores". Los Angeles Times. October 8, 1997.
  6. ↑ "CSK buys Trak Auto's So. Calif. stores". Phoenix Business Journal. December 10, 1997.
  7. ↑ "CSK Auto To Buy Paccar's Parts Subsidiary". The New York Times. August 24, 1999.
  8. ↑ "CSK Auto Corporation to Acquire Grand Auto Supply and Al's Auto Supply". The Auto Channel. August 23, 1999.
  9. ↑ Lane, Polly (August 23, 1999). "Eastside Business -- Paccar To Sell Auto-Parts Unit, Focus On Trucks". The Seattle Times.
  10. ↑ "CSK Auto Corporation to Acquire All-Car Distributors, Inc.". The Auto Channel. March 13, 2000.
  11. ↑ "CSK Auto Corporation to Acquire All-Car Distributors, Inc." (Press release). PR Newswire. March 13, 2000. Link via ProQuest.
  12. ↑ Bond, Andrew (April 29, 2011). "Can O'Reilly Keep Its Growth Up?". The Motley Fool.
  13. ↑ "Martin G. Fraser, Don W. Watson, Edward W. O'Brien, and Gary M. Opper: Lit. Rel. No. 20933A / March 6, 2009". Securities and Exchange Commission. March 6, 2009. Retrieved 2012-01-28.
  14. ↑ "Complaint for Violations for of Section 304 of the Sarbanes-Oxley Act of 2002 - Case 2:09-cv-01510-JWS / July 22, 2009" (PDF). Securities and Exchange Commission. July 22, 2009. Retrieved 2012-01-28.
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