LKQ Corporation Initiates Sale Process for Specialty Segment

LKQ Corporation is exploring the potential sale of its specialty segment, according to a news release. The announcement confirms a Reuters report, shared by FenderBender on Nov. 13, that LKQ was planning to sell its specialty parts business. 

Justin Jude, president and CEO of LKQ, said their specialty segment is a leading distributor of automotive, RV, and marine parts and accessories in North America.

"To unlock its full potential, we initiated a strategic review earlier this year to evaluate opportunities for the business under new ownership,” Jude said in a statement. “Current market conditions present an attractive environment to assess divestiture options and ensure we maximize the value of this best-in-class business.” 

The company shared there is no deadline or definitive timetable set for completion of a potential sale, and that there is no assurance that this process will result in a sale or any other transaction. It also "does not intend to comment on or provide updates regarding this process until it determines further disclosure is appropriate or required."

“LKQ remains committed to delivering superior financial returns,” Jude said. “Proceeds from a potential transaction will be allocated in accordance with the capital allocation framework previously outlined to shareholders by management, including maintaining a strong balance sheet and returning value to our shareholders through share repurchases. Importantly, we will only pursue a transaction that appropriately reflects our view of the market value of the business.” 

Bank of America will assist the process as the financial advisor, with Wachtell, Lipton, Rosen & Katz serving as legal counsel.