Considers potential sale of company.
LKQ Corporation (NASDAQ: LKQ) announced Jan. 26 that its board of directors has initiated a review of strategic alternatives to enhance shareholder value, including a potential sale of the company.
The automotive parts and refinish materials distributor has engaged BofA Securities as its financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel for the review.
“The Board and management continually evaluate the Company’s performance and strategic positioning as part of our responsibility to maximize shareholder returns,” said John Mendel, chairman of the board. “Consistent with this commitment, we have initiated a formal review of strategic alternatives to identify the best path forward to unlock value that is not reflected in our current valuation.”
LKQ said it is continuing with its previously announced process to explore the sale of its Specialty segment.
In October, the company completed the sale of its Self Service Segment, Pick Your Part, to an affiliate of Pacific Avenue Capital Partners.
The company did not set a deadline or timetable for completion of the strategic review and said there is no assurance the review will result in any transaction. LKQ said it does not intend to disclose developments related to the review unless further disclosure is appropriate or required by law.