- LKQ Corporation has agreed to acquire all issued and outstanding shares of Uni-Select for C$2.8 billion (US$2.1 billion)
- Uni-Select shareholders will receive C$48.00 per share in cash for each share held
- The acquisition will allow LKQ to build a significant presence in Québec
- LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles
- Uni-Select is a leader in the distribution of automotive refinish and industrial coatings, and related products in North America
- Uni-Select Inc. (UNS) opened trading at C$40.28 per share
LKQ Corporation has agreed to acquire all issued and outstanding shares of Uni-Select (UNS) for approximately C$2.8 billion (US$2.1 billion).
Uni-Select shareholders will receive C$48.00 for each share held.
“This acquisition further enhances LKQ’s global automotive vehicle parts distribution business,” said Dominick Zarcone, President and Chief Executive Officer of LKQ Corporation.
“Uni-Select’s North American automotive refinish paint and mechanical parts distribution operations complement LKQ’s existing footprint and will allow us to distribute a broader array of products to our customers,” he added.
The acquisition will allow LKQ to build a significant presence in Québec, including Uni-Select’s Boucherville, Québec head office, expanding upon LKQ’s already existing business operations in that province.
“The transaction offers compelling value and liquidity to our shareholders and is the culmination of the efforts by our dedicated team to improve our operations and drive efficiencies with a focus on excellent customer service,” noted Brian McManus, Executive Chair and Chief Executive Officer of Uni-Select.
The transaction is expected to generate approximately US$55 million of annual run-rate cost synergies by the third year following closing, plus incremental revenue and margin opportunities across the Uni-Select and LKQ businesses
LKQ hopes to fund the transaction through a combination of cash on hand and new debt.
LKQ has secured bridge financing commitments from Bank of America and Wells Fargo.
LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles.
Uni-Select is a leader in the distribution of automotive refinish and industrial coatings and related products in North America, as well as a leader in the automotive aftermarket parts business in Canada and the U.K.
Uni-Select Inc. (UNS) opened trading at C$40.28 per share.
