LKQ to Acquire Keystone Automotive

LKQ Corporation today announced that it has signed a definitive merger agreement to acquire Keystone Automotive Industries, Inc., a provider of aftermarket vehicle collision replacement parts, for $48.00 per share in cash.
The merger, which is subject to approval of the shareholders of Keystone and other customary conditions, is currently expected to close early in the fourth quarter of 2007.
Keystone’s Board of Directors has unanimously recommended that Keystone shareholders approve the merger.
Total cash consideration is approximately $811 million on a fully diluted basis.
“We have consistently executed strategies to grow LKQ and create stockholder value,” said Joe Holsten, President and Chief Executive Officer of LKQ.
“LKQ and Keystone are a great strategic fit and this acquisition is a natural progression of our strategy to expand our presence in the distribution of automotive replacement parts, an industry that we estimate to be over $188 billion in size.”
For the twelve months ended March 31, 2007 Keystone reported sales and net income of $714 million and $30 million, respectively, and LKQ reported sales and net income of $833 million and $48 million, respectively.
The Company expects to realize significant synergies mainly from the benefits of distribution efficiencies, working capital management, cross-selling opportunities, lower overhead, and increased productivity.
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 137 distribution facilities, of which 22 serve as regional hubs, located in 39 states and Canada.
Its product lines consist of automotive body parts, bumpers, and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle.
These products are sold to more than 25,000 repair shops throughout the United States and Canada.
LKQ Corporation is a provider of recycled light vehicle OEM products and related services and the a provider of aftermarket collision replacement products and refurbished wheels.
LKQ operates over 130 facilities offering its customers a broad range of replacement systems, components, and parts to repair light vehicles.