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Blog Exposure - US Auto-Parts Company LKQ Corp. Expands European Footprint with Acquisition of German Auto-Parts Retailer Stahlgruber

Stock Monitor: China Zenix Auto Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 13, 2017 / Active-Investors issued a free report on LKQ Corp. (NASDAQ: LKQ), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=LKQ as the Company's latest news hit the wire. On December 11, 2017, the Company made an announcement that it has signed an agreement to acquire Stahlgruber GmbH from Stahlgruber Otto Gruber AG. Germany, Stahlgruber is a leading wholesale distributor of aftermarket spare parts for passenger cars, tools, capital equipment, and accessories in Europe. The enterprise value of the deal is €1.5 billion or approximately $1.77 billion including debt. Sign up now for our free research reports at:

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Active-Investors.com is currently working on the research report for China Zenix Auto International Limited (NYSE: ZX), which also belongs to the Consumer Goods sector as the Company LKQ Corp. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, LKQ Corp most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=LKQ

Highlights of the Deal

LKQ expects to complete the transaction in late Q1 2018 or early Q2 2018. The transaction is subject to receiving requisite regulatory approvals and other closing conditions. As per the terms of the agreement, LKQ will be issuing 8,055,569 fresh shares of the Company which will be directly given to the owner of Stahlgruber. The Company will be financing the acquisition using funds from fresh debt and its existing revolving credit facility. LKQ had recently changed its the revolving credit facility after which it has an available borrowing capacity of approximately $1.4 billion as on December 01, 2017. For FY17, Stahlgruber is expected to have annual revenue of approximately €1.6 billion. LKQ expects the acquisition to be accretive to its adjusted diluted EPS in the first year after the completion of the transaction. The accretion does not include costs related to amortization of acquired intangibles, restructuring and acquisition related expenses.

The deal gains prominence given that LKQ's major rival in the US, Genuine Parts Company (NYSE: GPC), completed acquisition of European auto-parts distributor Alliance Automotive Group in November 2017 in a $2 billion deal. The acquisition allows GPC to extend its reach across European markets. LKQ is currently the number one auto-parts distributor by billings in the European light vehicle aftermarket. LKQ has been able to reach the leading position in European aftermarkets mainly due to strategic acquisitions like that of Italy's Rhiag-Inter Auto Parts Italia S.p.A in March 2016. The current deal is expected to further expand and consolidate LKQ's presence in the European Automotive aftermarkets.

BofA Merrill Lynch and Credit Suisse acted as the financial advisors to LKQ and Stahlgruber's owner had Deutsche Bank as their exclusive financial advisor for this deal.

About Stahlgruber GmbH

Germany-based Stahlgruber is a leading wholesale distributor of aftermarket spare parts for passenger cars, tools, capital equipment and accessories in Europe. The Company has operations in Germany, Austria, the Czech Republic, Italy, Slovenia, and Croatia as well as sales to Switzerland. Stahlgruber's facilities include 228 sales centers, six warehouses, and an approximately 128,000 square meter advanced logistics center at a strategic location in Germany. The Company caters to over 100,000 professional clients with over 500,000 SKUs on offer.

Stahlgruber's owners had been scouting for a suitable buyer for the auto-parts business since September 2017 and LKQ was one of the leading bidders for this business.

Management Comments

Commenting on the acquisition, John S. Quinn, CEO and MD of LKQ Europe, said:

"Stahlgruber will create a contiguous footprint and serve as an additional strategic hub for our European operations, allowing for continued improvement in procurement, logistics and infrastructure optimization."

Dominick Zarcone, President and CEO of LKQ Corp., added:

"This transformative acquisition solidifies LKQ as a leading Pan-European aftermarket mechanical parts distributor, and further enhances our global diversification strategy. Stahlgruber has a history of delivering above-market growth and its stellar industry reputation is an ideal fit with our culture; we are extremely proud to welcome the approximately 6,600 Stahlgruber employees to the LKQ family."

Heinz Reiner Reiff, CEO of Stahlgruber Otto Gruber AG, stated:

"I am very excited about the meaningful benefits that will occur by combining our complementary cultures and industry leading management, which together position Stahlgruber to achieve the continued growth of its European businesses. Our acceptance of LKQ shares as part of the consideration emphasizes our belief in the value of this combination."

About LKQ Corp.

Chicago, Illinois based LKQ is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The Company offers a wide variety of replacement systems, components, equipment and parts to repair and accessorize automobiles, trucks, and recreational and performance vehicles. The Company's operations are spread across North America, Europe, and Taiwan.

LKQ has four business segments: 1) Wholesale – North America which sells aftermarket, recycled, remanufactured, refurbished and original equipment manufacturers (OEMs) parts; 2) European wholesale segment includes Euro Car Parts Holdings Limited (ECP); 3) the Specialty segment includes Keystone Automotive Holdings, Inc. (Keystone Specialty); and 4) its Self-Service segment retails parts from older cars and light-duty trucks directly to consumers.

Stock Performance Snapshot

December 12, 2017 - At Tuesday's closing bell, LKQ Corp's stock was marginally up 0.62%, ending the trading session at $40.59.

Volume traded for the day: 2.82 million shares, which was above the 3-month average volume of 1.32 million shares.

Stock performance in the last month – up 9.23%; previous three-month period – up 14.21%; past twelve-month period – up 22.00%; and year-to-date - up 32.43%

After yesterday's close, LKQ Corp's market cap was at $12.54 billion.

Price to Earnings (P/E) ratio was at 25.58.

The stock is part of the Consumer Goods sector, categorized under the Auto Parts industry. This sector was flat at the end of the session.

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