Transportation and Automotive Sector Ideas

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>>> Auto parts firm LKQ to buy Uni-Select in $2.1 billion deal


Reuters

2-272-23


https://www.msn.com/en-us/money/topstories/auto-parts-firm-lkq-to-buy-uni-select-in-2-1-billion-deal/ar-AA180048?OCID=ansmsnnews11


(Reuters) -LKQ Corp said on Monday it would buy Uni-Select Inc in an all-cash deal valued at about C$2.8 billion ($2.06 billion), looking to tap into the Canadian company's strong presence in the aftermarket auto parts business.

The deal comes as rising interest rates force customers to hold on to their vehicles for longer, spurring demand for repairs and other services.

In Canada, Uni-Select deals with over 1,000 customers and supports over 16,000 automotive repair and collision repair shops.

Uni-Select's shareholders will receive C$48 per share, a premium of 19.2% to the stock's close on Friday.

The equity value of the transaction is C$2.11 billion, based on calculations by Reuters.

Boucherville, Quebec-based Uni-Select distributes automotive refinish and industrial coatings and related products in North America, while LKQ sells OEM recycled and aftermarket parts, replacement systems among others.

"While it has been years since LKQ completed platform M&A, we do think this deal makes strategic sense," Stephens analyst Daniel Imbro said.

LKQ intends to fund the transaction through a combination of cash on hand and new debt and has secured bridge financing commitments from Bank of America and Wells Fargo.

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