LKQ Acquires Rhiag Auto Parts Italia For $1.14 Billion, Shares Spike Higher

Shares of

, a distributor of vehicle products, spiked higher by more than 3 percent early Tuesday morning and were trading $28.21 after the company

it will acquire the holding company of Rhiag-Inter Auto Parts Italia ("Rhiag") for 1.04 billion euros ($1.14 billion). Rhiag operates through 247 distribution centers and 10 warehouses across Europe and serves more than 100,000 professional clients. The transaction is expected to close early in the second quarter of 2016. LKQ said that it expects the transaction to be accretive to its earnings in 2016. "Rhiag expands our addressable market with the addition of 10 new countries to our European footprint," stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation. "Rhiag has a strong market position in Italy and the Czech Republic and experienced management teams in their respective markets.