LKQ acquires recycled parts business

LKQ Corporation announced the signing of an agreement to acquire Pick-Your-Part Auto Wrecking, an auto recycler with nine recycling locations in California that generated approximately $114.1 million of revenue in the twelve months ended December 31, 2007. Pick-Your-Part Auto Wrecking has five retail-oriented, recycled parts facilities in the Greater Los Angeles area (one of which also operates a wholesale business), two in the San Francisco Bay area, one in the Bakersfield area and one in the Greater San Diego area. The nine locations operate on approximately 174 total combined acres of property. After the closing of the transaction, five of the locations will be leased from entities controlled by the current owners of Pick-Your-Part. Members of Pick-Your-Part’s current management team plan to remain with Pick-Your-Part under LKQ’s ownership.

The purchase price for all of the outstanding voting and non-voting stock of Pick-Your-Part is expected to be $72.9 million, subject to adjustments related to working capital at closing, with the majority of the price allocated to the non-voting stock.