LKQ Acquires Québec-Based Uni-Select For $2.1B; Expects Significant Cost Synergies

LKQ Corp LKQ said it has entered into a definitive agreement to acquire all of Uni-Select Inc's issued and outstanding shares for C$48.00 per share in cash.
The transaction price of C$48.00 per share represents a premium of 19.2% to Uni-Select's Toronto Stock Exchange closing share price on Feb. 24, 2023.
The deal represents a total enterprise value of approximately C$2.8 billion ($2.1 billion).
Founded in Boucherville, Québec, Canada in 1968, Uni-Select distributes 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.
With over 5,200 employees, 15 distribution centers, and 400+ branches, Uni-Select supports over 70,000 customers annually across the U.S., Canada, and the U.K.
LKQ expects the deal to be accretive to its Adjusted EPS in the first year following closing. The deal is expected to close in the second half of 2023.
"This acquisition further enhances LKQ's global automotive vehicle parts distribution business," stated Dominick Zarcone, President and CEO of LKQ/
LKQ intends to fund the deal through a combination of cash on hand and new debt. It held $278 million in cash and equivalents as of Dec. 31, 2022.
Price Action: LKQ shares closed higher by 2.24% at $57.55 on Friday.