Chicago, Illinois -- December 5, 2013 -- LKQ Corporation has signed a definitive agreement to acquire Keystone Automotive Operations for $450 million. The transaction is expected to be completed in the first quarter of 2014 and is subject to customary closing conditions and necessary regulatory approvals.

LKQ acquired aftermarket parts manufacturer Keystone Automotive Industries in 2007. Keystone Automotive Operations is a separate company, marketing products to serve the following six category segments: truck and off-road; speed and performance; recreational vehicle; towing; wheels, tires and performance handling; and miscellaneous accessories. Established in 1971, Keystone Automotive Operations has over 1,500 employees with 25 locations serving more than 20,000 specialty retailers and equipment installers throughout North America.

“LKQ will become a leading player in the specialty aftermarket equipment and accessories business with this acquisition,” said Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation. “In addition, our addressable market opportunity in North America will be significantly expanded. The entire specialty aftermarket equipment and accessories industry is a highly fragmented $31 billion market, and Keystone’s current product categories represent about $5 billion of the industry.”

LKQ expects the transaction to be accretive to its earnings in 2014. Keystone’s revenue for 2014 is expected to be approximately $700 million with an EBITDA margin of approximately ten percent. These projected results exclude restructuring and acquisition related expenses.
 

 

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