LKQ Corporation Acquires Euro Car Parts, UK's Leading Automotive Aftermarket Parts Distributor
October 03 2011 - 7:02PM
LKQ Corporation (Nasdaq:LKQX) today announced that effective
October 1, 2011 it has acquired Euro Car Parts, the largest
distributor of automotive aftermarket parts in the United Kingdom.
Established in 1978, Euro Car Parts has over 3,500 employees
serving more than 120,000 commercial customers from 89 locations
throughout the UK, offering a broad product line of 114,000
SKUs.
"The acquisition of Euro Car Parts represents an important
strategic step for LKQ. It has always been our goal to acquire the
best companies in their respective markets. Euro Car Parts
represents that type of company in the UK with its impressive track
record of growth, excellent distribution network and strong
management team. Euro Car Parts provides an ideal entry point to
Europe for LKQ. With this acquisition, we will work with Euro Car
Parts customers and suppliers to expand the use of alternative
automotive parts in the UK," stated Robert Wagman, President &
Co-CEO of LKQ Corporation.
Sukhpal Singh Ahluwalia, Chairman and Managing Director of Euro
Car Parts, commented, "Euro Car Parts is proud to be part of LKQ
and we are excited to continue our successful growth with the LKQ
team. Under my continuing leadership, this new partnership with LKQ
will help the experienced Euro Car Parts management team to
continue our rapid expansion in the UK market, in existing products
and markets sectors, and to explore additional opportunities
throughout Europe."
The initial purchase price was £225 million ($347 million). In
addition, the purchase agreement provides that the purchase price
could increase by up to £55 million ($85 million) if Euro Car Parts
meets certain growth targets in 2012 and 2013. The payments related
to the growth targets would be payable in 2013 and 2014.
The Company indicated that the acquisition is expected to
generate Q4 2011 revenue of approximately $120 - $125 million and
to be accretive to diluted earnings per share by $0.15 - $0.18 in
2012. The Company noted that this estimate is contingent upon a
number of factors including, without limitation, exchange rates,
final accounting adjustments for the acquisition and interest
rates. The estimate excludes any gains or losses associated with
restructuring expenses, transaction costs incurred in conjunction
with the acquisition, and adjustments related to the contingent
purchase price.
LKQ also announced that the Company amended and restated its
credit facility, increasing the facility by $400 million, to $1.4
billion. The new facility allows the Company to draw an additional
$200 million term loan prior to March 31, 2012 and increases the
size of the revolving credit loan capacity by $200 million, to $950
million. The pricing and financial covenants of the March 25, 2011
credit facility remain substantially unchanged. The acquisition of
Euro Car Parts was primarily financed by drawing on the amended
credit facility.
About LKQ Corporation
LKQ Corporation is the largest nationwide provider of
aftermarket and recycled collision replacement parts and
refurbished collision replacement products such as wheels, bumper
covers and lights, and a leading provider of mechanical replacement
parts including remanufactured engines, all in connection with the
repair of automobiles and other vehicles. LKQ also has operations
in the United Kingdom, Canada, Mexico and Central America. LKQ
operates more than 430 facilities, offering its customers a broad
range of replacement systems, components and parts to repair
automobiles and light, medium and heavy-duty trucks.
Investor Conference Call & Investor
Presentation
LKQ will host a conference call and a webcast of an investor
presentation on October 4, 2011 at 10:00 a.m. Eastern Time (9:00
a.m. Central Time) with members of senior management to discuss the
acquisition of Euro Car Parts.
To access the investor conference call, please dial (877)
407-0315. International access to the call may be obtained by
dialing (201) 689-8501.
To access the investor presentation please click on the
following URL link 15 minutes prior to the call:
http://event.on24.com/r.htm?e=361606&s=1&k=7DDD25D4E12EB6724CFA928214B82C86
The conference call and the investor presentation can be
accessed via the Company website, www.lkqcorp.com. The investor
presentation will be available there approximately 15 minutes prior
to the call.
A replay of the conference call will be available by telephone
at (877) 660-6853 or (201) 612-7415 for international calls. The
telephone replay will require you to enter account: 286 #,
conference ID: 379890 #. An online replay of the investor
presentation webcast will be available on the Company's website.
Both formats of replay will be available through November 4, 2011.
Please allow approximately two hours after the live presentation
before attempting to access the replay.
Forward Looking Statements
Certain statements in this press release that are not historical
are forward looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward looking
statements generally include expectations, beliefs, hopes,
intentions or strategies regarding our future. Forward looking
statements are subject to risks, uncertainties and other factors
some of which are not currently known to us. Actual events or
results may differ materially from those expressed or implied in
the forward looking statements as a result of various factors. Some
of such risks, uncertainties and other factors are described in our
Form 10-K for the period ending December 31, 2010, and are
described in other periodic filings with the Securities and
Exchange Commission. We assume no obligation to publicly update any
forward looking statement to reflect events or circumstances
arising after the date, on which it was made, except as required by
law.
CONTACT: Joseph P. Boutross
LKQ Corporation
Director, Investor Relations
(312) 621-2793
jpboutross@lkqcorp.com
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