PGW’s business comprises wholesale and retail distribution services, automotive glass manufacturing and retailer alliance partnerships. It operates approximately 120 distribution branches serving more than 7,000 automotive glass retailer shops throughout North America. In addition, PGW operates 12 automotive glass fabrication facilities in North America, Europe and China.
LKQ Corp. is a provider of alternative specialty parts to repair and accessorize automobiles and other vehicles. The company has operations in North America, the United Kingdom, the Netherlands, Belgium, France, Scandinavia and Taiwan. It offers customers a broad range of replacement systems, components, equipment and parts to repair and accessorize automobiles, trucks, and recreational and performance vehicles.
The transaction is expected to be completed in the second quarter of 2016 and is subject to customary closing conditions and necessary regulatory approvals.
“We are excited to be partnering with PGW, and look forward to working with the existing core management team at PGW to continue to invest and grow its business while continuing the high quality to all its customers,” says Robert Wagman, president and CEO of LKQ Corp.
“This acquisition will expand our addressable market in North America and globally; and simultaneously offer tremendous distribution synergy opportunities with our existing network,” he adds.
Jim Wiggins, chairman and CEO of PGW, adds, “PGW transformed itself into a strong global competitor of automotive glass and enjoyed tremendous market and financial success under the stewardship of Kohlberg and PPG. We are excited to become a part of the LKQ family, and expect that the company will continue on its growth and success trajectory under LKQ.”
PGW’s revenue for the 12 months ended October 31, 2015 was approximately $1.07 billion, and LKQ expects the transaction to be accretive to its earnings in 2016. These projected results exclude restructuring and acquisition-related expenses.
The company intends to finance the acquisition with borrowings under its revolving credit facility. As of February 25, 2016, the company had approximately $2.2 billion of available borrowing capacity on its credit facility.