MEMPHIS, Tenn., Oct. 31 /PRNewswire-FirstCall/ -- AutoZone, Inc.
(NYSE: AZO) today announced that partnerships associated with ESL Investments,
Inc. ("ESL") have agreed to sell approximately 5.6 million shares of AutoZone,
Inc. common stock under a shelf registration effective in April 2002 in a
public offering, underwritten by Citigroup Global Markets, Inc. (Citigroup).
The purchase price to be paid to ESL for the 5.6 million shares is
approximately $550 million. In addition, ESL has agreed to sell to an
affiliate of Citigroup an over-the-counter option to purchase 4.4 million
shares of AutoZone, Inc. common stock at an exercise price of $100 per common
share on December 19, 2003. The purchase price for the option is
approximately $6 million. In connection with the option, the affiliate of
Citigroup expects to initially offer approximately 1.8 million shares of
AutoZone, Inc. common stock in transactions through Citigroup. Citigroup has
advised AutoZone and ESL that it will engage in further sales and purchases of
AutoZone, Inc. common stock prior to the expiration date of the option.
ESL said that the pending sale of the shares and options was a result of a
desire by ESL to diversify its holdings. ESL agreed not to sell any
additional common shares for a period of 90 days from today. "After this
offering, we still will be a large shareholder of AutoZone," said Edward S.
Lampert, Chairman and CEO of ESL Investments, Inc., "and we continue to have
great confidence in Steve Odland, Chairman, President, and CEO of AutoZone,
and his management team."
AutoZone, Inc. will not sell any shares in the offering.
* * *
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws
of any such jurisdiction.
As of August 30, 2003, AutoZone sells auto and light truck parts,
chemicals and accessories through 3,219 AutoZone stores in 48 states plus the
District of Columbia in the U.S. and 49 AutoZone stores in Mexico and also
sells the ALLDATA brand diagnostic and repair software. On the web, AutoZone
sells diagnostic and repair information though www.alldatadiy.com, and auto
and light truck parts through www.autozone.com.
SOURCE AutoZone, Inc.
CONTACT: Financial: Brian Campbell, +1-901-495-7005,
brian.campbell@autozone.com; or Media: Ray Pohlman, +1-901-495-7962,
ray.pohlman@autozone.com