The deal is valued at CAD$2.8 billion (USD$2.1 billion).
The acquisition will create significant strategic fit, enhancing LKQ’s existing business and driving profitable growth, according to a company press release.
Uni-Select’s North American automotive refinish paint and mechanical parts distribution operations complement LKQ’s existing footprint, allowing the company to distribute a broader array of products to customers. Additionally, the deal is expected to generate approximately USD$55 million of annual run-rate cost synergies by the third year following closing, plus incremental revenue and margin opportunities across both businesses.
Uni-Select, which employs more than 5,200 people across the United States, Canada and the U.K., has 15 distribution centers and more than 400 branches. Its FinishMaster segment is a leader in the distribution of automotive refinish and industrial coatings, while its Canadian Automotive Group segment is a leader in the automotive aftermarket parts business in Canada.
Uni-Select also has a presence in the U.K. through its GSF Car Parts segment.
“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,” said Brian McManus, Executive Chair and Chief Executive Officer of Uni-Select.
The acquisition will also 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 the province.
“This acquisition further enhances LKQ’s global automotive vehicle parts distribution business,” said Dominick Zarcone, President and Chief Executive Officer of LKQ Corporation. “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.”
The deal is expected to close in the second half of 2023, subject to regulatory approvals and other customary closing conditions.
For the latest news and information on the global automotive aftermarket industry, visit https://aftermarketintel.com. Do you have news? Contact Aftermarket Intel Editor Mark Phillips at mark@lpnewmedia.com. He’s on LinkedIn here.
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