Breaking News: ECP sold in £225m deal

US bodyshop supplier acquires Euro Car Parts

Published:  04 October, 2011

Component supplier Euro Car Parts has been sold to a US bodyshop supplier in a deal worth £225m

LKQ Corporation, the largest provider of aftermarket and recycled collision replacement parts and refurbished collision replacement products in the US and Canada, has acquired Euro Car Parts. The initial purchase price was £225 million. In addition, the purchase agreement provides that the purchase price could increase by up to a further £55 million if Euro Car Parts meets certain growth targets.

Sukhpal Singh Ahluwalia, Chairman and Managing Director of Euro Car Parts, commented

"LKQ Corporation is arguably the most dynamic and successful company in the North American automotive aftermarket for collision parts. They have a dedicated and focused management team which has built an innovative company with a very strong work ethic. We feel very much in tune with this culture and with our new colleagues, all of whom have many years of experience in this business.

LKQ Corporation has made over 120 acquisitions, large and small, during the past 14 years and with great success. Euro Car Parts is their second largest ever acquisition and their first outside of North America.

LKQ Corporation's formula is to back existing management teams and to help them realise their market potential. This will also be the case with Euro Car Parts. I am retaining a substantial financial interest and all of my fellow board directors have indicated their intention to remain. In fact there will be no changes or additions to the team which, as you may know, was recently awarded the accolade of 'Best UK Management Team 2011' in The Sunday Times Profit Track 100.

Under my leadership, this new partnership with LKQ Corporation will help the Euro Car Parts team continue our fast expansion in the UK parts aftermarket, in existing products and market sectors, but also in some new ones.

Over the past 12 months, Euro Car Parts has opened a brand-new 500,000 sq. ft. National Distribution Centre, 9 Regional Hubs and many new branches. Sales and profits grew substantially in the first 6 months of 2011 compared with the previous year, at a time when some competitors were slipping backwards. Already selling significantly more car and light commercial vehicle parts than our nearest UK competitor, Euro Car Parts' existing plans envisioned extended rapid growth and market leadership as the current business model is rolled out across the UK. With the additional resources of the LKQ Corporation group at our disposal, I am determined and confident that we will make further significant advances in our market share."

For LKQ Corporation, Robert Wagman, President & Co-CEO, added:

"The acquisition of Euro Car Parts represents an important strategic step for LKQ Corporation.  It has always been our goal to acquire the best companies in their respective markets.  Euro Car Parts represents that type of a company in the UK market with its impressive track record of growth, excellent distribution network and strong management.  Euro Car Parts provides an ideal launching point for our European entry.  With this acquisition we will work with Euro Car Parts' customers and suppliers to expand the use of alternative automotive parts in the UK."

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