Acquisitions

9 Months Ended

Sep. 30, 2025

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

Acquisitions

Acquisitions

We acquired several businesses for approximately $295 million and $1.1 billion, which includes certain non-cash consideration and is net of cash acquired, during the nine months ended September 30, 2025 and 2024, respectively.

During the nine months ended September 30, 2025, we recorded approximately $156 million of goodwill and other intangible assets associated with these acquisitions. Other intangible assets acquired of $73 million consisted of customer relationships with weighted average amortization lives of 20 years. During the nine months ended September 30, 2025, we recognized approximately $89 million and $48 million of revenue related to our current year Automotive and Industrial acquisitions, respectively.

During the nine months ended September 30, 2024, we recorded approximately $470 million of goodwill and other intangible assets associated with these acquisitions. Other intangible assets acquired of $200 million consisted of customer relationships and trade names with weighted average amortization lives of 19 years. As part of our acquisition strategy to own more stores in priority markets, we acquired two of the largest independent owners of NAPA Auto Parts Stores in the U.S., Motor Parts & Equipment Corporation in April 2024 and Walker Automotive Supply, Inc. in July 2024, for which we recognized approximately $100 million of goodwill and other intangible assets.

For each acquisition, we allocate the purchase price to the assets acquired and the liabilities assumed based on their fair values as of their respective acquisition dates. The fair values of the assets acquired and liabilities assumed are preliminary and may be subject to additional adjustments, particularly to inventory and intangible assets during the measurement period, which may be up to one year from the respective acquisition dates. The results of operations for acquired businesses are included in our Condensed Consolidated Statements of Income beginning on their respective acquisition dates.