LONDON (Dec. 22, 2015) — Auto parts distributor LKQ Corp. has arranged to buy Rhiag-Inter Auto Parts Italia S.p.A., a pan-European business-to-business distributor of aftermarket spare parts for passenger cars and commercial vehicles, in a deal valued at $1.13 billion.
Pero, Italy-based Rhiag operates through 247 distribution centers and 10 warehouses in Italy, Czech Republic, Switzerland, Hungary, Romania, Ukraine, Bulgaria, Slovakia, Poland and Spain and serves more than 100,000 customers throughout Europe.
"Rhiag expands our addressable market with the addition of 10 new countries to our European footprint,” said LKQ President and CEO Robert Wagman. “Rhiag has a strong market position in Italy and the Czech Republic and experienced management teams in their respective markets.”
Mr. Wagman said the acquisition will accelerate LKQ's strategy of creating a Pan-European aftermarket mechanical parts distribution business in a “highly fragmented” do-it-for-me wholesale market valued at more than $200 billion.
The transaction is expected to be completed early in the second quarter of 2016 and is subject to customary closing conditions and necessary regulatory approvals. LKQ expects the transaction to be accretive to its earnings in 2016, excluding restructuring- and acquisition-related expenses.