Italian spare parts supplier Rhiag being bought by U.S. firm in 1 billion-euro deal
Resource from: Reuters Likes:246
Dec 29,2015
(Reuters) -- U.S. aftermarket supplier LKQ Corp. said today it would buy Italy's Rhiag-Inter Auto Parts Italia SpA, owned by private equity firm Apax Partners, to expand in the European auto spare parts market.
The deal, valued at 1.04 billion euros ($1.14 billion) on an enterprise basis, will give LKQ access to Italy, Czech Republic, Switzerland, Hungary, Romania, Ukraine, Bulgaria, Slovakia, Poland and Spain.
It will help the company tap a "highly-fragmented 188 billion euro wholesale DIFM (Do-It-For-Me) market," CEO Robert Wagman said. Europe accounted for more than a quarter of LKQ's revenue in 2014.
Merger and acquisition activity in the aftermarket auto parts industry is picking up as consumers choose to repair their vehicles instead of buying new ones.
Japanese tire maker Bridgestone and billionaire investor Carl Icahn are locked in a battle for U.S. auto parts retailer Pep Boys-Manny, Moe & Jack.
Advance Auto Parts is also reportedly exploring a sale after being approached by at least one possible suitor.
Rhiag, whose rivals include Mekonomen in the Nordic region and Inter Cars in Poland, had revenue of about 882 million euros in the year ended Sept. 30.
Reuters reported exclusively in July that Apax, which bought Rhiag in 2013 for an undisclosed amount, was exploring a listing or sale of the Italian company.
The LKQ-Rhiag deal is expected to be completed in the second quarter of 2016.
LKQ said it planned to finance the deal, which would add to its earnings from 2016, through its revolving credit facility and it would also take on Rhiag's debt.
The Chicago-based company was formed in 1998 and has grown globally through more than 200 acquisitions since then, according to its website.
During the first nine months, LKQ said it posted net income of $328 million on revenue of $5.4 billion, up from net income of $301 million on revenue of just over $5 billion during the same period last year.
BofA Merrill Lynch was LKQ's financial adviser for the deal and JP Morgan and UBS advised Apax and Rhiag.
(Reuters)
【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
