LKQ Corp. has signed a offer to obtain Quebec-primarily based Uni-Pick Inc. in a about $2.8-billion deal that aims to increase the U.S. automotive products supplier’s aftermarket small business amid a thriving sector.
Below the agreement, LKQ will spend $48 for every Uni-Choose share in hard cash for the aftermarket car-pieces distributor. The purchase marks a 19.2-for each-cent top quality about the $40.28 closing rate of Uni-Find shares on the Toronto Stock Trade on Friday.
The transaction, which needs shareholder approval, also involves antitrust clearances in Canada, the U.S. and the U.K. and acceptance beneath the Expenditure Canada Act.
LKQ chief govt Dominick Zarcone mentioned the offer will bolster the company’s auto-parts distribution and broaden its existence in Quebec.
“Uni-Select’s North American automotive refinish paint and mechanical-components distribution functions complement LKQ’s present footprint and will permit us to distribute a broader array of products to our consumers,” he mentioned in a news launch.
In connection with the deal, Chicago-centered LKQ reported it will glance to promote GSF Vehicle Components U.K., Uni-Select’s U.K.-based mechanical-sections distribution business.
Uni-Pick is acknowledged for the distribution of automotive paints, industrial coatings, extras and other auto solutions for the aftermarket, which refers to pieces and providers bought just after the initial sale to the purchaser.
Founded in Boucherville in 1968, the firm has much more than 5,200 personnel, 15 distribution centres and extra than 400 branches. It supports far more than 16,000 vehicle-repair shops and a further 4,000 retailers via its fix-installer and auto-refinishing banners.
Some of its 95 corporation-operated retailers function beneath the names Bumper to Bumper, Car Elements In addition and Finishmaster.
The aftermarket — almost everything from tire adjustments to brake repair service — observed profits soar around the past two years as source chain snarls sparked by the COVID-19 pandemic pushed up prices, even though some funds not expended on holidays went towards residence and car or truck improvements.
“The automotive aftermarket remained buoyant in 2022 with a greater part of stores observing developing income and expecting more advancement in the course of 2023,” Andrew King, running companion at DesRosiers Automotive Consultants, wrote in a take note this month.
“However, persistent problems surrounding pieces source and charges keep on being problematic throughout the sector.”
Uni-Pick CEO Brian McManus reported the offer will fuel efficiencies and give liquidity to shareholders.
“We see great alternatives to gain our customers, staff, suppliers and manufacturers by combining our complementary strengths in the larger, multi-disciplinary and growing LKQ crew.”