The following statement has been issued by LKQ Corp following last week’s announcement that it has acquired Uni-Select, parent company of GSF Car Parts. While the statement is a confirmation of what we already knew, it is the first time that LKQ has made a public statement to the UK on the matter of the GSF divestment. (Nick Zarcone’s previous comments were on statements issued by Uni-Select and from a conference call with investors).
LKQ CORPORATION CLARIFIES GSF’S FUTURE AFTER UNI-SELECT ACQUISITION
LKQ Corporation, the parent company of LKQ Euro Car Parts, has clarified that it will be undertaking a process to divest GSF following its acquisition of the factor’s Canadian owner, Uni-Select.
The Transaction is subject to the receipt of anti-trust clearance in the UK – LKQ Corporation will offer to divest GSF as part of its application for the UK competition authority’s approval of the Transaction and the divestment.
In the interim, LKQ Corporation will not be involved in the day-to-day running of the GSF business with the existing management team remaining in place and the organization ringfenced from LKQ.
Nick Zarcone, President and Chief Executive Officer of LKQ Corporation, said: “As detailed in the presentation shared on our website upon announcing the acquisition last week, we expect to divest GSF following receipt of relevant regulatory approvals. We hope this announcement helps to reassure the UK aftermarket that we remain committed to competition in the sector.”
There is a total lack of any form of entrepreneurship at GSF and has been for a while. They wouldn’t recognise an opportunity if it slapped them around the head. Mind you, same applies to ECP and AAG. They have plenty of people that are great with an Excel spreadsheet but can’t make a decision.
They will of course say what they think the industry – their customers, want to hear. They are owned by the company that owns ECP – so its the same company but different trading brands. They even put their own man (Sukhbir) in before the deal was announced. It was a mystery at the time as to why he was appointed as his record of running a business – Digraph, was terrible.
Time will tell – will they sell to anyone that represents a serious competitor? I very much doubt it. They will need to dance to the tune set by US investors, that’s what happens when you borrow billions of Dollars. This will concern them more than anything that the UK monopolies board will or won’t do.
Well, they’ll fuck that up like they did Andrew Page………..
Stack ’em high, sell ’em cheap-don’t care if it goes wrong after 5 minutes-just get ’em sold! Oh and be really slow with your credits……..
I am surprised at how quickly they have expressed the need to divest ( business speak for get rid of) GSF. There is no shortage of motor factors, garages have plenty of choice – four nationals, great independents, plus all the OE backed parts programmes. They simply don’t need it! I suspect they will cherry pick a few depots, then take time to close the rest citing that they were unable to sell.
It doesn’t really tell us anything new. Why would they sell to a rival or create a new one? Will they keep depots where allowed and shut others? Will they discuss (agree) selling prices? What pressure will they put on suppliers? Clearly something had to give as the UK has too many national factors – all pretty much with the same old business model, same key brands, chasing the same customers.