CHICAGO — Vehicle parts supplier LKQ Corp. has struck a deal to buy Canadian parts supplier Uni-Select Inc. in a deal valued at $2.1 billion,
The deal will provide LKQ with an expanded presence in Canada, especially in Quebec, where Uni-Select is headquartered.
Uni-Select generated $1.73 billion in sales last year, while LKQ reported 2022 revenue of $12.8 billion.
Boucherville, Québec-based Uni-Select is involved in the distribution 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 United Kingdom through its GSF Car Parts segment.
It supports over 16,000 automotive repair and collision repair shops and more than 4,000 shops through its automotive repair and installer shop banners and automotive refinish banners. Its network includes over 1,000 independent customer locations and more than 95 company-operated stores, many of which operate under the Uni-Select Bumper to Bumper, Auto Parts Plus, and FinishMaster store programs.
LKQ President and CEO Dominick Zarcone said LKQ management believes the firms' 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."
Brian McManus, executive chair and CEO 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."
LKQ said it expects the deal to generate annual run-rate cost synergies of roughly $55 million by the third year after the deal closes, plus incremental revenue and margin opportunities across the Uni-Select and LKQ businesses.
LKQ is offering $48 a share to acquire all of Uni-Select's issued and outstanding shares.