LKQ Corporation (NASDAQ: LKQ) today announced that it has commenced a process to explore the potential sale of its Specialty segment.
“Our Specialty segment is a leading distributor of automotive, RV and marine parts and accessories in North America. It is a strong business supported by an exceptional team. To unlock its full potential, we initiated a strategic review earlier this year to evaluate opportunities for the business under new ownership. Current market conditions present an attractive environment to assess divestiture options and ensure we maximize the value of this best-in-class business,” said Justin Jude, President and Chief Executive Officer of LKQ.
“This review aligns with our ongoing strategy to simplify our portfolio and concentrate on our core segments. We recently demonstrated our commitment to this strategy with the successful sale of our Self-Service segment,” continued Jude. “LKQ remains committed to delivering superior financial returns. Proceeds from a potential transaction will be allocated in accordance with the capital allocation framework previously outlined to shareholders by management, including maintaining a strong balance sheet and returning value to our shareholders through share repurchases. Importantly, we will only pursue a transaction that appropriately reflects our view of the market value of the business.”
According to the company, there is no deadline or definitive timetable set for completion of a potential sale, and there can be no assurance that this process will result in a sale or any other transaction. The Company does not intend to comment on or provide updates regarding this process until it determines further disclosure is appropriate or required.
LKQ has engaged Bank of America as financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel to assist with the process.