ABPA - Automotive Body Parts Association

Automotive Body Parts Association

News and Articles

LKQ Corporation Announces Agreement to Acquire Rhiag-Inter Auto Parts Italia S.p.A.

logo-group-big LKQ_Logo

CHICAGO, Dec. 22, 2015  — LKQ Corporation (Nasdaq:LKQ) announced that it has signed a definitive agreement to acquire the holding company of Rhiag-Inter Auto Parts Italia S.p.A (“Rhiag”), a leading pan-European business-to-business distributor of aftermarket spare parts for passenger cars and commercial vehicles, for an enterprise value of €1.04 billion. Rhiag has operations in Italy, Czech Republic, Switzerland, Hungary, Romania, Ukraine, Bulgaria, Slovakia, Poland and Spain. Rhiag operates through 247 distribution centers and 10 warehouses, and serves more than 100,000 professional clients.

The transaction is expected to be completed early in the second quarter of 2016 and is subject to customary closing conditions and necessary regulatory approvals.

“Rhiag expands our addressable market with the addition of 10 new countries to our European footprint,” stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation.  “Rhiag has a strong market position in Italy and the Czech Republic and experienced management teams in their respective markets. Clearly this acquisition will accelerate our strategy of creating a Pan-European aftermarket mechanical parts distribution business in this highly-fragmented €188 billion wholesale DIFM market.”

Luca Zacchetti, Rhiag Group CEO, commented: “I believe that, combined with LKQ, Rhiag Group will be in an even stronger position to deliver its superior service level to customers across Europe. I am committed to pursuing our existing strategic goal of profitable market share growth.”

Rhiag’s revenue for the twelve months ended September 30, 2015 was approximately €882 million, 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 initially finance the acquisition with borrowings on its revolving credit facility and the assumption of Rhiag’s indebtedness. As of September 30, 2015, the Company had approximately $1.3 billion of available borrowing capacity on its credit facility.

LKQ Corporation Board member and Euro Car Parts Chairman Sukhpal Singh Ahluwalia added “I have long admired Rhiag’s impressive track record of growth and strong distribution network. We have numerous common suppliers, and I have worked closely with many of them for more than 30 years. I am confident that together with Rhiag we will make our supplier relationships even stronger. LKQ and Rhiag share a commitment to serve our customers and a desire to expand into new markets. I look forward to welcoming the Rhiag team to the LKQ Europe family in a few months.”

“Rhiag is an example of a high quality, market-leading distributor,” said Frank Ehmer of Apax Partners LLP.  “I would like to thank Luca Zacchetti and the management team for delivering outstanding results across the business during our stewardship of the firm. The team achieved success on a number of organic growth initiatives as well as successfully executed on an M&A strategy.  We believe the company is well-positioned to achieve success under LKQ ownership.”

BofA Merrill Lynch acted as exclusive financial advisor to LKQ Corporation in connection with this transaction. JP Morgan and UBS acted as financial advisors to Apax Partners and Rhiag Group.

About LKQ Corporation

LKQ Corporation (www.lkqcorp.com) is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles.  LKQ has operations in North America, the United Kingdom, the Netherlands, Belgium, France, Scandinavia, Australia and Taiwan. LKQ offers its customers a broad range of replacement systems, components, equipment and parts to repair and accessorize automobiles, trucks, and recreational and performance vehicles.

ABPA Partners

The ABPA is proud to be a partner and support the advocacy efforts of:

My Parts Choice
CAR Coalition

Body Language

Body Language is the official newsletter of the ABPA. Click here for more information, and to sign up for the mailing list!

Article Archives