LKQ Corporation has completed the takeover of GSF Car Parts owner Uni-Select in a deal valued of approximately $2.1 billion (£1.64bn).
UPDATE: GSF Car Parts sold to private equity firm (26.10.23)
Under the terms of the deal, among other things, Euro Car Parts owner LKQ will acquire all of the issued and outstanding Uni-Select shares for $48 (£38) in cash per share.
Despite the deal, GSF, which is the UK operating outfit of Canada-based Uni-Select, will “continue to operate with total independence” during the “transitionary period” president and COO Sukhbir Kapoor has said.
“Our 180 branches remain open for business as usual and will continue to offer excellent service to trade and retail customers,” he added. “We look forward to the pending completion of the divestment and beginning the next chapter in GSF’s journey as a leading motor factor in the UK.”
The deal sees LKQ grow its portfolio with Uni-Select joining brands such as Rhiag, Atracco, ATK, Keystone, and more. Across 25 countries, LKQ Corp employs 45,000 staff.
Its newest acquisition, which started life in Québec in 1968, is known in the automotive aftermarket parts business in Canada through its Canadian Automotive Group segment and in the UK through the GSF Car Parts segment.
With over 5,200 employees, 15 distribution hubs and more than 400 branches, Uni-Select has around 70,000 customers annually across the United States, Canada, and the UK.
“This acquisition further enhances LKQ’s global automotive vehicle parts distribution business,” Dominick Zarcone, president and chief executive officer of LKQ Corporation said back in February.
“Uni-Select’s North American automotive refinish paint and mechanical parts distribution operations complement LKQ’s existing footprint and will allow us to distribute a broader array of products to our customers. We look forward to welcoming Uni-Select’s employees to the LKQ team.
“Importantly, we believe that our combined efforts will create tremendous long-term value for our customers, shareholders, employees, and other stakeholders as we continue to focus on our operational excellence initiatives.”
Zarcone added: “We are also pleased that the acquisition will allow LKQ to build a significant presence in Québec, including Uni-Select’s Boucherville, Québec head office, expanding upon LKQ’s already existing business operations in that province.”
Brian McManus, executive chair and chief executive officer of Uni-Select, said: “The transaction offers compelling value and liquidity to our shareholders and is the culmination of the efforts by our dedicated team to improve our operations and drive efficiencies with a focus on excellent customer service.
“We see great opportunities to benefit our customers, employees, suppliers and brands by combining our complementary strengths within the larger, multi-disciplinary and growing LKQ team.”