LKQ to acquire Keystone

Dec. 6, 2013
The $450 million transaction is expected to be completed in the first quarter of 2014.  
LKQ Corp. has signed a definitive agreement to acquire Keystone Automotive Operations, Inc. 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.
Established in 1971, Keystone has more than 1,500 employees and 25 locations serving more than 20,000 specialty retailers and equipment installers throughout North America. It offers a broad product line of more than 300,000 SKUs from more than 800 suppliers. Keystone markets 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.
"LKQ will become a leading player in the specialty aftermarket equipment and accessories business with this acquisition," says Robert L. Wagman, LKQ president and CEO. "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 10 percent. These projected results exclude restructuring and acquisition related expenses.
The company intends to finance the acquisition with borrowings on its revolving credit facility and asset securitization program. As of Sept. 30, 2013, the company had approximately $1.2 billion available from these sources.
About the Author

ABRN Wire Reports

These are press releases approved by our ABRN Editors

Sponsored Recommendations

Best Body Shop and the 360-Degree-Concept

Spanesi ‘360-Degree-Concept’ Enables Kansas Body Shop to Complete High-Quality Repairs

How Fender Bender Operator of the Year, Morrow Collision Center, Achieves Their Spot-On Measurements

Learn how Fender Bender Operator of the Year, Morrison Collision Center, equipped their new collision facility with “sleek and modern” equipment and tools from Spanesi Americas...

ADAS Applications: What They Are & What They Do

Learn how ADAS utilizes sensors such as radar, sonar, lidar and cameras to perceive the world around the vehicle, and either provide critical information to the driver or take...

Banking on Bigger Profits with a Heavy-Duty Truck Paint Booth

The addition of a heavy-duty paint booth for oversized trucks & vehicles can open the door to new or expanded service opportunities.