LKQ to Acquire Keystone Automotive Operations for $450M
LKQ Corporation (Nasdaq: LKQ) announced that it has signed a definitive agreement to acquire Keystone Automotive Operations, Inc. ("Keystone"), a leading distributor and marketer of specialty aftermarket equipment and accessories in North America, 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 over 1,500 employees with 25 locations serving more than 20,000 specialty retailers and equipment installers throughout North America, offering a broad product line of over 300,000 SKUs from over 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," stated 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