- LKQ ( NASDAQ: LKQ ) to acquire Uni-Select’s shares for C$48.00 per share in cash, representing a total enterprise value of ~C$2.8B (or $2.1B).
- Uni-Select is a distributor of automotive refinish and industrial coatings and related products in North America through its FinishMaster segment, in the automotive aftermarket parts business in Canada through its Canadian Automotive Group segment and in the U.K. through its GSF Car Parts segment.
- Purchase price represents a 19.2% premium to Uni-Select's closing share price on February 24, 2023 and 20.7% to Uni-Select’s trailing 20-day volume-weighted average price.
- The transaction is expected to generate ~$55M of annual run-rate cost synergies by the third year following closing, plus incremental revenue and margin opportunities across the Uni-Select and LKQ businesses.
- LKQ expects the transaction to be accretive to its Adjusted EPS in the first year following closing.
- The company expects to fund with a combination of cash on hand and new debt. At closing, LKQ expects to have total leverage of ~2.4x.
For further details see:
LKQ to acquire Uni-Select for C$2.8B