LKQ Corp. Finalizes Acquisition of PGW

Robert Wagman, LKQ CEO, speaking during his company’s investor day in New York City earlier this year.

LKQ Corp. has completed its acquisition of Pittsburgh Glass Works (PGW) from private equity firm Kohlberg & Co. LLC and PPG Industries Inc. for an enterprise value of $635 million.

The deal was first announced February 29, 2016.

PGW’s business comprises wholesale and retail distribution services, automotive glass manufacturing, and retailer alliance partnerships. PGW operates approximately 120 distribution branches serving more than 7,000 automotive glass retail shops throughout North America. In addition, PGW operates 12 manufacturing, fabrication and assembly facilities.

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.

“With the acquisition of PGW and our entrance into the sizable automotive glass market, we continue to grow our industry-leading position and product offerings to further serve the needs of our professional repairer customer,” says Robert L. Wagman, president and CEO of LKQ Corp.

Jim Wiggins, chairman and CEO of PGW, adds, “PGW is excited to join LKQ. We view PGW’s offerings as complementary to LKQ’s business, and together our respective teams now have the technology, products, and expertise to introduce automotive glass to LKQ’s global growth strategy.”

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.

“PGW has 119 locations. A lot of those will be consolidated into LKQ warehouses or vice versa. We’ll combine our distribution,” said Wagman during an investor day in New York City on March 15, 2016.

“We are one and done,” Wagman said at the time. “We are not going to do another OE deal. This deal was unique. PGW is a net buyer of glass. They are buying more glass outside of the network because they can’t produce enough to meet their needs. In the event of a downturn, we would simply shift that business from the OE to our own aftermarket business. I’m not wishing for a downturn in OE … but this is a buffer we don’t have in any of our other businesses.”