LKQ Corporation to acquire Keystone Automotive Industries, Inc.
July 17, 2007 Recycling giant LKQ Corporation has signed a merger agreement to acquire auto parts distributor Keystone Automotive Industries Inc. for $48.00 per share in cash. Keystone's Board of Directors unanimously recommended that Keystone shareholders approve the merger. The merger will join the nation’s largest parts recycler and distributor. Both companies praised the agreement, noting that it provides significant value to shareholders and allows each company to leverage the other’s strengths. Keystone president and chief executive officer (CEO) Rick Keister states, “Keystone’s aftermarket product offerings are a perfect fit with LKQ's leading presence in the recycled parts business.” “The Keystone-LKQ merger presents unique opportunities to provide a comprehensive program of aftermarket, remanufactured and recycled parts to our customers…,” he says. LKQ says the transaction effectively creates a “vehicle alternative replacement parts business” whose combined annual revenues now approach $1.5 billion. LKQ president and CEO Joe Holsten says the merger will help increase the use of non-OEM parts: “We believe the merger will allow for better availability and higher utilization of alternative parts in the repair process, which will benefit our insurance company customers and grow our business." The merger follows a series of acquisitions by LKQ. In 2004, LKQ acquired Global Trade Alliance, an aftermarket parts distributor. Following that, LKQ integrated a number of smaller aftermarket and refurbished parts distributors. The merger will add Keystone’s 137 distribution centers to LKQ’s 130. The merger, which is subject to approval of the shareholders of Keystone and other customary conditions, is expected to close early in the fourth quarter of 2007. Total cash consideration is approximately $811 million on a fully diluted basis.
|
