LKQ Corp. has signed a deal to acquire Quebec-centered Uni-Select Inc. in a about $2.8-billion deal that aims to raise the U.S. automotive products supplier’s aftermarket business enterprise amid a thriving industry.
Underneath the settlement, LKQ will spend $48 per Uni-Select share in cash for the aftermarket auto components distributor. The invest in marks a 19.2 for each cent high quality above the $40.28 closing cost of Uni-Find shares on the Toronto Stock Trade on Friday.
The transaction, which demands shareholder approval, also needs antitrust clearances in Canada, the U.S. and the U.K. and acceptance below the Financial commitment Canada Act.
LKQ chief govt Dominick Zarcone mentioned the offer will bolster the firm’s automobile areas distribution and broaden its presence in Quebec.
“Uni-Select’s North American automotive refinish paint and mechanical components distribution operations enhance LKQ’s present footprint and will allow for us to distribute a broader array of items to our buyers,” he claimed in a news launch.
In relationship with the offer, Chicago-based LKQ explained it will appear to sell GSF Car or truck Areas U.K., Uni-Select’s U.K. centered mechanical sections distribution business enterprise.
Uni-Decide on is recognized for the distribution of automotive paints, industrial coatings, extras and other car merchandise for the aftermarket, which refers to pieces and providers obtained immediately after the original sale to the client.
Founded in Boucherville in 1968, the corporation has additional than 5,200 staff, 15 distribution centres and far more than 400 branches. It supports over 16,000 vehicle repair service outlets and one more 4,000 stores by way of its repair service-installer and car or truck refinishing banners.
Some of its 95 company-operated outlets run under the names Bumper to Bumper, Auto Sections As well as and Finishmaster.
The aftermarket — all the things from tire improvements to brake maintenance — saw sales soar in excess of the earlier two yrs as provide chain snarls sparked by the COVID-19 pandemic pushed up costs, even though some dollars not invested on holidays went toward household and automobile enhancements.
“The automotive aftermarket remained buoyant in 2022 with a bulk of merchants viewing escalating income and expecting further growth throughout 2023,” Andrew King, controlling spouse at DesRosiers Automotive Consultants, wrote in a observe this thirty day period.
“However, persistent problems bordering parts provide and rates stay problematic across the marketplace.”
Uni-Choose CEO Brian McManus explained the offer will fuel efficiencies and give liquidity to shareholders.
“We see wonderful chances to advantage our clients, employees, suppliers and models by combining our complementary strengths within just the larger, multi-disciplinary and rising LKQ team.”
This report by The Canadian Press was 1st printed Feb. 27, 2023.