LKQ Corp. LKQ announced Monday an agreement to buy Canada-based automotive finish and industrial coatings products company Uni-Select Inc. CA:UNS in a deal valued at $2.1 billion (C$2.8 billion). Under terms of the deal, Chicago-based LKQ will pay C$48.00 in cash for each Uni-Select share outstanding, which represents a 19.2% premium to Friday’s closing price of C$40.28. LKQ expects the deal to generate about $55 million in annual synergies by the third year after closing, which is expected to occur in the second half of 2023, and add to adjusted earnings per share (EPS) in the first year. LKQ plans to fund the deal through cash on hand and new debt. “This acquisition further enhances LKQ’s global automotive vehicle parts distribution business,” said LKQ Chief Executive Dominick Zarcone. LKQ’s stock, which is still inactive in premarket trading, has gained 4.9% over the past three months while Uni-Select shares have lost 6.8% and the S&P 500 SPX has slipped 1.4%.
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