LKQ Corp. To Buy Uni-Select For C$2.8 Bln Cash

(RTTNews) - LKQ Corporation (LKQ), an automobile parts provider, and Uni-Select Inc. (UNS), an automotive refinish and industrial coatings firm, announced on Monday that they have inked a deal allowing LKQ to acquire Uni-Select, for C$48 per share in cash or a total enterprise value of around C$2.8 billion.

LKQ intends to fund the transaction through a combination of cash on hand and new debt. It has secured bridge financing commitments from Bank of America and Wells Fargo.

The acquirer expects the acquisition to be accretive to its adjusted income per share in the first year, following the closure. The transaction price of C$48 per share represents a premium of 19.2 percent to Uni-Select's closing share price on February 24, and 20.7 percent to Uni-Select's trailing 20-day volume-weighted average price.

The deal, subject to customary conditions, including the receipt of anti-trust clearances in Canada, the U.S. and the U.K., is expected to close in the second half of 2023.

Dominick Zarcone, CEO of LKQ, said: "This acquisition further enhances LKQ's global automotive vehicle parts distribution business. Uni-Select's North American automotive refinish paint and mechanical parts distribution operations complement LKQ's existing footprint and will allow us to distribute a broader array of products to our customers…"

With over 15 distribution centers and over 400 branches, Uni-Select serves more than 70,000 customers annually across the U.S., Canada, and the UK.