CARMEL, Ind., June 28, 2019 /PRNewswire/ -- KAR Auction
Services Inc. (NYSE: KAR), a global automotive remarketing and
technology services provider, announced today that it successfully
completed its previously announced separation of IAA, Inc. ("IAA").
IAA is now an independent public company, trading on the New York
Stock Exchange under the ticker symbol "IAA." In early 2018, KAR
announced the proposed separation with the goals of increasing
shareholder value and allowing each company greater flexibility to
accelerate its distinct strategic priorities. KAR will continue to
focus on its auction marketplaces and has made meaningful
investments and acquisitions to bolster its digital, data
analytical and technology capabilities while expanding the
company's international footprint.
"Today marks the beginning of a new era for KAR and our
investors, employees and diverse customers around the globe," said
Jim Hallett, KAR chairman and CEO.
"KAR's strong, focused strategy positions us well to lead the
digital evolution of our industry and expand our broad portfolio of
innovative, integrated and data-driven solutions. We look forward
to seizing the many opportunities ahead, advancing our
entrepreneurial culture, and upholding our historical commitment to
customer service."
KAR will continue to operate its physical, online and digital
whole car auction marketplaces and offer a broad scope of ancillary
and related services, including dealer floorplan financing,
logistics, inspections and fleet management solutions. The company
also maintains a leadership position in the use of data and
technology to deliver clear, actionable insights to customers on
pricing, matching supply and demand and inventory optimization. In
2018, KAR generated approximately $2.4
billion of revenue. It is well-positioned with attractive
opportunities for enhanced growth and margins around the globe.
IAA will operate the pre-separation salvage auction businesses
of KAR, primarily comprised of Insurance Auto Auctions, Inc. in
the United States, Impact Auto
Auctions Ltd. in Canada and HBC
Vehicle Services Limited in the United
Kingdom. Through those businesses, IAA has been a leader in
total loss claim solutions and damaged and salvage vehicle auctions
in North America and the
United Kingdom. In 2018, Insurance
Auto Auctions, Inc. generated approximately $1.3 billion of revenue.
Under the terms of the spin-off, KAR shareholders retained their
KAR shares and received one IAA share for every KAR share held as
of 5:00 p.m. EDT on June 18, 2019, the record date for the
distribution. Beginning today, IAA will commence "regular way"
trading on the NYSE.
Barclays Capital Inc. acted as financial advisor to KAR and IAA
in connection with the separation. Skadden, Arps, Slate, Meagher
& Flom LLP acted as counsel in connection with the
transaction.
KAR
Contacts
|
|
Media
Inquiries:
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Analyst
Inquiries:
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Gene Rodriguez
Miller
|
Mike
Eliason
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(317)
343-5243
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(317)
249-4559
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gene.rodriguez@karauctionservices.com
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mike.eliason@karauctionservices.com
|
About KAR Auction Services
KAR Auction Services (NYSE:
KAR) provides sellers and buyers across the global wholesale used
vehicle industry with innovative, technology-driven remarketing
solutions. KAR's unique end-to-end platform supports whole car,
salvage, financing, logistics and other ancillary and related
services, including the sale of nearly 3.5 million units valued at
over $40 billion through our
auctions. Our integrated physical, online and mobile marketplaces
reduce risk, improve transparency and streamline transactions for
customers in more than 70 countries. Headquartered in Carmel, Ind., KAR has approximately 15,000
employees across the United
States, Canada,
Mexico and Europe. For more information go to
www.karauctionservices.com. For the latest KAR news follow us on
Twitter @KARspeaks.
Forward-Looking Statements
Certain statements contained in this release include
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and which are subject to
certain risks, trends and uncertainties. In particular, statements
made that are not historical facts may be forward-looking
statements. Words such as "should," "may," "will," "anticipates,"
"expects," "intends," "plans," "believes," "seeks," "estimates,"
and similar expressions identify forward-looking statements. Such
statements are not guarantees of future performance and are subject
to risks and uncertainties that could cause actual results to
differ materially from the results projected, expressed or implied
by these forward-looking statements. Such forward-looking
statements include the statements regarding future financial and
operating performance of each company, benefits and synergies of
the separation, strategic and competitive advantages of each
company, future opportunities for each company and any other
statements regarding events or developments that KAR or IAA
believes or anticipates will or may occur in the future. Factors
that could cause or contribute to such differences include those
matters disclosed in KAR's Securities and Exchange Commission
filings. KAR disclaims any obligation or undertaking to update any
forward-looking statements.
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SOURCE KAR Auction Services Inc.