The sale comes as LKQ Corporation, which is one of the largest North American aftermarket companies, continues to make a round of investments. The acquisition of Euro Car Parts marks the company’s first investment outside of North America.
The current sale price could rise by a further Â£55 million if certain growth targets set by LKQ are achieved in 2012 and 2013.
ECP founder and managing director Sukhpal Singh Ahluwalia has said that he intends to remain at the company, as well as retaining a substantial financial interest in Euro Car Parts. Many of the current ECP board members also intend to remain with the company.
He said: “LKQ Corporation is arguably the most dynamic and successful company in the North American automotive aftermarket for collision parts. They have a dedicated and focused management team which has built an innovative company with a very strong work ethic. We feel very much in tune with this culture and with our new colleagues, all of whom have many years of experience in this business.”
“Under my leadership, this new partnership with LKQ Corporation will help the Euro Car Parts team continue our fast expansion in the UK parts aftermarket, in existing products and market sectors, but also in some new ones.”
LKQ Corporation’s President Robert Wagman said: “The acquisition of Euro Car Parts represents an important strategic step for LKQ Corporation.Â It has always been our goal to acquire the best companies in their respective markets.Â Euro Car Parts represents that type of a company in the UK market with its impressive track record of growth, excellent distribution network and strong management.
“Euro Car Parts provides an ideal launching point for our European entry. With this acquisition we will work with Euro Car Partsâ€™ customers and suppliers to expand the use of alternative automotive parts in the UK.â€
Singh recently said he saw no reason why his dedicated and energetic team shouldnâ€™t continue the drive to create a company with a turnover of Â£1 billion and 10,000 employees across Europe.
Over the past twelve months ECP has opened a brand new 500,000 sq ft National Distribution Centre in Tamworth, as well as adding 9 Regional hubs and numerous new outlets.