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Cardis to Buy Wholesaler of Auto Parts : San Diego Pacific Has 33 Outlets and Warehouses

August 29, 1985|BILL RITTER | San Diego County Business Editor

Beverly Hills-based Cardis Corp., the largest automotive parts distributor in California, said Wednesday that it has reached an agreement in principle to buy San Diego Pacific, a wholesale distributor of car parts with 33 outlets and warehouses in Southern California and Arizona.

The purchase, for an undisclosed amount of cash and notes, is expected to be completed by Sept. 20, according to John Carlson, chairman of San Diego Pacific, which operates under the names of Mr. Parts and Sunbelt Distributing.

Publicly held Cardis reported sales of nearly $48 million and earnings of $1.4 million for the six months ended April 30.

Since then, the company has acquired Chanslor & Lyon Inc., an auto parts distributor with annual sales of about $84 million.

The acquisition of San Diego Pacific, with $59 million in sales for the nine months ended June 30, will give Cardis annual revenue approaching $250 million, according to Cardis Chairman Jack Salzberg.

"We're building a major core business in the automotive market," he said.

Salzberg said the company mapped out an acquisition campaign in 1983 because buying existing companies eliminates the years-long lead time needed to "get a foothold in the market."

No changes are expected in San Diego Pacific's 1,000-member work force, Carlson said.

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