August 1 targeted completion date for acquisition.
Uni-Select Inc. (TSE:UNS) announced today that LKQ Corporation (NASDAQ:LKQ) has elected to formally waive the closing condition relating to the receipt of UK merger clearance for the previously announced acquisition of Uni-Select by LKQ and its subsidiaries. LKQ also stated in its second quarter earnings announcement today that the acquisition was targeted to be completed August 1.
According to Uni-Select, the parent of FinishMaster, “As a result of the satisfaction or waiver of all of the closing conditions relating to required regulatory approvals, LKQ Corporation has requested to complete the arrangement on or around August 1, 2023. Uni Select and LKQ Corporation will proceed with the remaining procedures necessary to give effect to the arrangement on or around that date, subject to all applicable laws and legal requirements and the satisfaction or waiver of the remaining closing conditions pursuant to the terms of the arrangement agreement.”
As CollisionWeek reported July 25, the UK Competition and Markets Authority (CMA) confirmed that LKQ Corporation’s purchase of Uni-Select Inc. could raise competition concerns in the UK. These concerns were anticipated when the acquisition was announced in February, as LKQ said it would undertake a process to divest Uni-Select’s GSF Car Parts UK business given the overlap with its existing Euro Car Parts unit.
LKQ, through Euro Car Parts, and Uni-Select, through GSF Car Parts, operate over 400 locations between them in the UK.
The CMA’s investigation found that the merger could reduce competition in the supply of car parts, as well as garage equipment, to independent garages and workshops in 145 local areas and the supply of car parts to national and multi-regional customers across the UK. The CMA also found that competition could be reduced in the supply of car parts to retail customers in 172 local areas.
In February, LKQ and Uni-Select Inc. (TSE:UNS) announced that they have entered into a definitive agreement for LKQ to acquire all of Uni-Select’s issued and outstanding shares for CA$48.00 ($35.41) per share in cash, representing a total enterprise value of approximately CA$2.8 billion ($2.1 billion).
In Canada, Uni-Select supports over 16,000 automotive repair and collision repair shops and more than 4,000 shops through its automotive repair/installer shop banners and automotive refinish banners. Its network includes over 1,000 independent customer locations and more than 95 company-operated stores, many of which operate under the Uni Select Bumper to Bumper, Auto Parts Plus and FinishMaster store banner programs.
In the United States, Uni-Select, through its wholly-owned subsidiary FinishMaster, Inc., operates over 145 automotive refinish company-operated stores under the FinishMaster banner, which supports over 30,000 customers annually.