LKQ Corporation and Uni-Select Inc. on Feb. 27 announced they have entered into a definitive agreement for LKQ to acquire all of Uni-Select’s issued and outstanding shares for $2.1 billion.
Founded in Boucherville, Québec, Canada, in 1968, Uni-Select is a leader in the distribution of automotive refinish and industrial coatings and related products in North America through its FinishMaster segment, in the automotive aftermarket parts business in Canada through its Canadian Automotive Group segment and in the U.K. through its GSF Car Parts segment. With more than 5,200 employees, 15 distribution centers and 400+ branches, Uni-Select supports more than 70,000 customers annually across the U.S., Canada and the U.K.
“This acquisition further enhances LKQ’s global automotive vehicle parts distribution business,” said Dominick Zarcone, president and CEO 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. We look forward to welcoming Uni-Select’s employees to the LKQ team.
“Importantly, we believe that our combined efforts will create tremendous long-term value for our customers, shareholders, employees and other stakeholders as we continue to focus on our operational excellence initiatives.” Zarcone added. “We are also pleased that 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.”
Brian McManus, executive chair and CEO of Uni-Select, said, “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. We see great opportunities to benefit our customers, employees, suppliers and brands by combining our complementary strengths within the larger, multi-disciplinary and growing LKQ team.”
Transaction Highlights
- Compelling strategic fit. The addition of Uni-Select will enhance LKQ’s business and drive profitable growth
- Complements existing North American paint distribution operations. Uni-Select’s FinishMaster business improves LKQ’s scale and product mix to compete in this attractive and growing segment with minimal integration risk
- Scaled entry into mechanical parts. Uni-Select’s Canadian Automotive Group provides a scaled position in the attractive Canadian mechanical parts space, with opportunity for future consolidation and growth
- Significant cost synergies. The transaction is expected to generate approximately $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
After consultation with its outside financial and legal advisors and after receipt of the unanimous recommendation of a Special Committee of the Board of Directors, the Uni-Select Board of Directors unanimously approved the transaction and unanimously recommended Uni-Select shareholders vote in favor of it.
The transaction is expected to close in the second half of 2023, subject to customary conditions.
Source: LKQ Corporation
