LKQ Corporation Announces Agreement to Acquire Stahlgruber GmbH

LKQ Corporation has signed a definitive agreement to acquire Stahlgruber GmbH (Stahlgruber) from Stahlgruber Otto Gruber AG for an enterprise value of approximately $1.7 billion USD (1.5 billion EUR).

Headquartered in Germany, Stahlgruber is a European wholesale distributor of aftermarket spare parts for passenger cars, tools, capital equipment and accessories with operations in Germany, Austria, the Czech Republic, Italy, Slovenia and Croatia with further sales to Switzerland. It has facilities include 228 sales centers, six warehouses and an approximately 128,000-square-meter logistics center that is located in Germany.

The company expects to complete the transaction late in the first quarter or early in the second quarter of 2018, subject to required regulatory approvals.

“Stahlgruber has a history of delivering above-market growth and its stellar industry reputation is an ideal fit with our culture; we are extremely proud to welcome the approximately 6,600 Stahlgruber employees to the LKQ family,” said Dominick Zarcone, president and CEO of LKQ Corporation. “Importantly, we believe that our combined efforts will create tremendous long-term value for our customers and stockholders and growth opportunities for our collective team members.”

“Stahlgruber will create a contiguous footprint and serve as an additional strategic hub for our European operations, allowing for continued improvement in procurement, logistics and infrastructure optimization,” said John S. Quinn, CEO and managing director of LKQ Europe.

“This combination is a natural fit for both LKQ and Stahlgruber. I am very excited about the meaningful benefits that will occur by combining our complementary cultures and industry leading management, which together position Stahlgruber to achieve the continued growth of its European businesses,” said Heinz Reiner Reiff, CEO of Stahlgruber Otto Gruber AG. “Our acceptance of LKQ shares as part of the consideration emphasizes our belief in the value of this combination.”

Stahlgruber’s 2017 annual revenue is estimated to be approximately $2 billion USD (1.6 billion EUR). LKQ expects the transaction to be accretive to its adjusted diluted earnings per share during the first year after the closing. These projected results exclude amortization of acquired intangibles, restructuring and acquisition related expenses.

The company intends to finance the acquisition with the proceeds from planned debt offerings, borrowings under its existing revolving credit facility and the direct issuance to Stahlgruber’s owner of 8,055,569 newly issued shares of LKQ common stock. As of December 1, 2017, LKQ had approximately $1.4 billion USD of available borrowing capacity under its recently amended credit facility.

This entry was posted in glassBYTEs Headlines and tagged . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *