LKQ Corporation, owner of LKQ Euro Car Parts, has announced it has entered an agreement to purchase Uni-Select, the parent company of GSF Car Parts and The Parts Alliance.
The two Uni-Select brands will continue to operate as independent businesses until the completion of the transaction. LKQ Corporation will then undertake a process to divest GSF Car Parts due to anticipated regulatory measures. Therefore, the operations of GSF will remain entirely separate from those of LKQ, and GSF will continue to enjoy the support of Uni-Select until the divestment is complete.
The final transaction, at a value of approximately $2.1 billion, is expected to close in the second half of 2023.
Uni-Select business important to LKQ Corporation
“This acquisition further enhances LKQ’s global automotive vehicle parts distribution business,” stated Dominick Zarcone, President and Chief Executive Officer of LKQ Corporation. “Uni-Select’s North American automotive refinish paint and mechanical parts distribution operations complement LKQ’s existing footprint and will allow us to distribute a broader array of products to our customers.
“We look forward to welcoming Uni-Select’s employees to the LKQ team. Importantly, we believe that our combined efforts will create tremendous long-term value for our customers, shareholders, employees, and other stakeholders as we continue to focus on our operational excellence initiatives.”
Brian McManus, Executive Chair and Chief Executive Officer of Uni-Select, added: “The transaction offers compelling value and liquidity to our shareholders and is the culmination of the efforts by our dedicated team to improve our operations and drive efficiencies with a focus on excellent customer service. We see great opportunities to benefit our customers, employees, suppliers and brands by combining our complementary strengths within the larger, multi-disciplinary and growing LKQ team.”
GSF Car Parts divestment ‘not a worry’
The divestment of GSF Car Parts, which was purchased by The Parts Alliance in 2015 and by Uni-Select in 2017, means the overall acquisition is unlikely to cause issues with the Competitions and Markets Authority in the UK. LKQ has experience of this process with the purchase of Andrew Page by LKQ Euro Car Parts in 2016.
As The Parts Alliance rebranded as GSF Car Parts in 2021, the divestment will likely mean all GSF Car Parts branches in the UK moving to management by a new company, either spun-out from Uni-Select or sold to an existing group or investment business.
GSF Car Parts President and COO Sukhbir Kapoor said: “We are a strong and healthy business, optimistic about the eventual outcome of the divestment process, given the strength of GSF and the talent of our 2,500 people across the UK.
“There is no material change to the day-to-day business of GSF Car Parts because of Uni-Select’s announcement, so our network of 180 branches and our growing online retail service remains open for business as usual.
“Everyone at GSF Car Parts remains committed to driving value and delivering the excellent service to our customers on which the business has built its strong reputation.”
