LKQ Corporation Agrees to Sell its Self Service Segment
LKQ Corporation (NASDAQ:LKQ) has announced the sale of its Self Service segment ("Pick Your Part") to Pacific Avenue Capital Partners, LLC for an enterprise value of $410 million. The transaction, expected to close in Q4 2025, is part of LKQ's strategic transformation to simplify its portfolio and focus on core segments.
The sale resulted from a competitive bid process and aligns with LKQ's long-term strategy of portfolio optimization. The company plans to use the net proceeds to strengthen its balance sheet through debt reduction. The deal's completion is subject to customary closing conditions and regulatory approval.
LKQ Corporation (NASDAQ:LKQ) ha annunciato la cessione del suo segmento Self Service ('Pick Your Part') a Pacific Avenue Capital Partners, LLC per un valore d'impresa di $410 milioni. L'operazione, il cui closing 猫 previsto per il 4掳 trimestre 2025, rientra nella trasformazione strategica di LKQ finalizzata a semplificare il portafoglio e concentrarsi sui segmenti core.
La vendita 猫 scaturita da un processo competitivo di gara e si allinea alla strategia di lungo periodo di LKQ volta all'ottimizzazione del portafoglio. L'azienda prevede di impiegare i proventi netti per rafforzare il bilancio riducendo l'indebitamento. Il perfezionamento dell'accordo 猫 subordinato alle consuete condizioni di chiusura e all'approvazione delle autorit脿 competenti.
LKQ Corporation (NASDAQ:LKQ) ha anunciado la venta de su segmento de Self Service ('Pick Your Part') a Pacific Avenue Capital Partners, LLC por un valor empresarial de $410 millones. La transacci贸n, que se espera cierre en el 4.潞 trimestre de 2025, forma parte de la transformaci贸n estrat茅gica de LKQ para simplificar su cartera y centrarse en sus segmentos principales.
La venta surgi贸 de un proceso competitivo de licitaci贸n y est谩 en l铆nea con la estrategia a largo plazo de LKQ de optimizaci贸n del portafolio. La compa帽铆a planea utilizar los ingresos netos para reforzar su balance mediante la reducci贸n de deuda. La finalizaci贸n del acuerdo est谩 sujeta a las habituales condiciones de cierre y a la aprobaci贸n regulatoria.
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LKQ Corporation (NASDAQ:LKQ) a annonc茅 la cession de son segment Self Service (芦 Pick Your Part 禄) 脿 Pacific Avenue Capital Partners, LLC pour une valeur d'entreprise de 410 millions de dollars. La transaction, dont la cl么ture est pr茅vue au 4e trimestre 2025, s'inscrit dans la transformation strat茅gique de LKQ visant 脿 simplifier son portefeuille et 脿 se concentrer sur ses segments cl茅s.
La vente r茅sulte d'un processus d'appel d'offres comp茅titif et s'aligne sur la strat茅gie 脿 long terme de LKQ d'optimisation du portefeuille. La soci茅t茅 pr茅voit d'utiliser le produit net pour renforcer son bilan en r茅duisant sa dette. La finalisation de l'op茅ration est soumise aux conditions de cl么ture usuelles et 脿 l'approbation r茅glementaire.
LKQ Corporation (NASDAQ:LKQ) hat den Verkauf seines Self-Service-Gesch盲fts ('Pick Your Part') an Pacific Avenue Capital Partners, LLC f眉r einen Unternehmenswert von 410 Mio. $ angek眉ndigt. Die Transaktion, deren Abschluss f眉r das 4. Quartal 2025 erwartet wird, ist Teil von LKQs strategischer Neuausrichtung, das Portfolio zu vereinfachen und sich auf Kernsegmente zu konzentrieren.
Der Verkauf entstand aus einem wettbewerblichen Bieterverfahren und entspricht der langfristigen Strategie von LKQ zur Portfoliooptimierung. Das Unternehmen beabsichtigt, die Nettoerl枚se zur St盲rkung der Bilanz durch Schuldenabbau zu verwenden. Der Vollzug des Gesch盲fts steht unter dem Vorbehalt 眉blicher Abschlussbedingungen und beh枚rdlicher Genehmigung.
- Strategic sale value of $410 million strengthens company's financial position
- Transaction enables greater focus on core business segments
- Net proceeds will be used to reduce debt and improve balance sheet
- Deal resulted from robust competitive bidding process indicating strong asset value
- Divestment of historically meaningful business segment reduces revenue diversification
- Transaction subject to regulatory approval which could delay or prevent closing
Insights
LKQ's $410M divestiture of Pick Your Part aligns with strategic simplification, strengthening balance sheet through debt reduction.
LKQ Corporation's decision to sell its Self Service segment ("Pick Your Part") for
The transaction follows what the company describes as a "robust competitive bid process," suggesting management secured favorable terms through multiple interested parties. This competitive process likely helped maximize the value received for an asset deemed non-core to future operations.
Strategically, this move signals LKQ's evolution from its historical acquisition-driven growth model to a more refined operational approach. After years of expansion through acquisitions, management has determined that the Self Service segment no longer aligns with their long-term vision, despite its historical significance to the company.
The announcement that proceeds will be used for debt reduction demonstrates fiscal discipline and a commitment to strengthening the balance sheet. This deleveraging will improve financial flexibility, potentially enabling more strategic investments in priority segments or returning value to shareholders through other means in the future.
Timing is also noteworthy - with completion expected in Q4 2025 pending regulatory approvals. The transaction structure appears straightforward with a defined enterprise value of
This divestiture clearly advances LKQ's stated goal of becoming "a more focused, high-performing company" by pruning non-core assets. Investors should view this as evidence that management is executing on its communicated strategy of portfolio simplification and resource reallocation toward higher-priority business segments.
Transaction Advances LKQ Corporation鈥檚 Strategic Plan to Simplify Corporate Structure and Focus on Core Segments
ANTIOCH, Tenn., Aug. 26, 2025 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ) (鈥淟KQ鈥� or the 鈥淐ompany鈥�) today announced it has entered into a definitive agreement to sell its Self Service segment (鈥淧ick Your Part鈥�) to an affiliate of Pacific Avenue Capital Partners, LLC for an enterprise value of
鈥淭oday鈥檚 announcement marks another important step in our multi-year transformation to simplify our portfolio and become a more focused, high-performing company with leadership positions in our priority segments,鈥� said Justin Jude, LKQ鈥檚 President and Chief Executive Officer. 鈥淲hile Pick Your Part has played a meaningful role in our history, we believe that it no longer aligns with our long-term strategy. As we have said, after having built the Company through thoughtful acquisitions over many years, we have reached a point where it makes sense to assess opportunities to simplify and sharpen our focus. We will continue to evaluate opportunities to advance our strategic objectives so that we can best serve customers and create value for our shareholders.鈥�
Mr. Jude added, 鈥淲e know the Pick Your Part team will continue to be best-in-class operators under the ownership of Pacific Avenue Capital Partners. We thank all Pick Your Part employees for their efforts and years of service at LKQ and wish them the best.鈥�
The net proceeds from the sale will be used to strengthen LKQ鈥檚 balance sheet through debt repayment.
The transaction is expected to be completed during the fourth quarter of 2025, subject to the satisfaction of customary closing conditions, including receipt of required regulatory approval.
Jefferies LLC served as the financial advisor to LKQ, and Wachtell, Lipton, Rosen & Katz served as the legal advisor to LKQ in connection with the transaction.
About LKQ Corporation
LKQ Corporation () is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, Europe and Taiwan. LKQ offers its customers a broad range of OEM recycled and aftermarket parts, replacement systems, components, equipment, and services to repair and accessorize automobiles, trucks, and recreational and performance vehicles.
Forward Looking Statements
This communication contains forward-looking statements, including, but not limited to, statements related to the proposed sale of Pick Your Part by LKQ. Words such as 鈥渆xpects,鈥� 鈥渁nticipates,鈥� 鈥渁ims,鈥� 鈥減rojects,鈥� 鈥渋ntends,鈥� 鈥減lans,鈥� 鈥渂elieves,鈥� 鈥渆stimates,鈥� 鈥渟eeks,鈥� 鈥渁ssumes,鈥� 鈥渕ay,鈥� 鈥渟hould,鈥� 鈥渃ould,鈥� 鈥渨ould,鈥� 鈥渇oresees,鈥� 鈥渇orecasts,鈥� 鈥減redicts,鈥� 鈥渢argets,鈥� 鈥渨ill鈥�, 鈥渃ommitments,鈥� variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are based upon LKQ鈥檚 current plans, assumptions, beliefs, and expectations. Forward-looking statements are subject to the occurrence of many events outside of LKQ鈥檚 control. Actual results and the timing of events may differ materially from those contemplated by such forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties.
These risks and uncertainties include, among other things, statements regarding the expected benefits to LKQ and its respective customers from completing the transaction, plans for future investment and capital allocation, the expected financial performance of LKQ following the expected completion of the transaction, and the expected completion of the transaction. Statements regarding future events are based on the parties鈥� current expectations, estimates and projections and are necessarily subject to associated risks related to, among other things, (i) the completion of the proposed transaction on the anticipated terms and timing, or at all, including the parties鈥� ability to obtain the required regulatory approval and satisfy other conditions to the completion of the transaction, (ii) the effect of the announcement or pendency of the proposed transaction on LKQ鈥檚 business, operating results, ability to retain and hire key personnel, and relationships with customers, suppliers, competitors and others, (iii) risks that the proposed transaction may disrupt LKQ鈥檚 current plans and business operations or divert management鈥檚 attention from ongoing business operations, (iv) the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement entered into in connection with the proposed transaction, (v) legislative, regulatory and economic developments and (vi) general economic conditions.
For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to LKQ鈥檚 periodic reports and other filings with the Securities and Exchange Commission, including the information identified under the headings 鈥淩isk Factors鈥� and 鈥淢anagement鈥檚 Discussion and Analysis of Financial Condition and Results of Operations鈥� in LKQ鈥檚 most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, available on LKQ鈥檚 investor relations website at lkqcorp.com and on the SEC website at www.sec.gov. The forward-looking statements included in this communication are made only as of the date hereof. Forward-looking statements should be considered in light of these risks and uncertainties. Investors and others are cautioned not to place undue reliance on forward-looking statements. LKQ does not undertake any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.
Contacts:
Joseph P. Boutross
Vice President, Investor Relations
LKQ Corporation
(312) 621-2793
FAQ
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