LKQ Corporation Acquires Rhode Island Recycled Auto Parts Facility
CHICAGO, Oct. 31, 2005 -- LKQ Corporation today announced that it has acquired Advanced Auto Recycling, Inc., a privately held company that operates a recycled OEM automotive replacement parts facility. Terms of the transaction were not disclosed.
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Located in Cumberland, RI on thirty acres of land near Providence, RI, Advanced will service Rhode Island, as well as portions of the Massachusetts and Connecticut markets.
"Our investment in Advanced will complement and expand our recycled parts business the New England market," said Joe Holsten, LKQ's President and Chief Executive Officer. "It will also serve as a redistribution center for aftermarket parts in the New England market from our recently opened warehouse in Massachusetts."
Advanced Auto's revenue for the trailing twelve months was approximately $6.2 million. We expect this business to be neither accretive nor dilutive to LKQ in the fourth quarter of 2005.
About LKQ Corporation
LKQ Corporation is the largest nationwide provider of recycled light vehicle OEM products and related services and the second largest nationwide provider of aftermarket collision replacement products. LKQ operates over 95 facilities offering its customers a broad range of replacement systems, components, and parts to repair light vehicles.
Forward Looking Statements
The statements in this press release that are not historical are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our expectations, beliefs, hopes, intentions or strategies. Forward looking statements involve risks and uncertainties, some of which are not currently known to us. Actual events or results may differ materially from those expressed or implied in the forward looking statements as a result of various factors. These factors include:
-- the availability and cost of inventory;
-- pricing of new OEM replacement parts;
-- variations in vehicle accident rates;
-- changes in state or federal laws or regulations affecting our business;
-- fluctuations in fuel prices;
-- changes in the demand for our products and the supply of our inventory
due to severity of weather and seasonality of weather patterns;
-- changes in the types of replacement parts that insurance carriers will
accept in the repair process;
-- the amount and timing of operating costs and capital expenditures
relating to the maintenance and expansion of our business, operations
and infrastructure;
-- declines in asset values;
-- uncertainty as to changes in U.S. general economic activity and the
impact of these changes on the demand for our products;
-- uncertainty as to our future profitability;
-- increasing competition in the automotive parts industry;
-- our ability to increase or maintain revenue and profitability at our
facilities;
-- uncertainty as to the impact on our industry of any terrorist attacks
or responses to terrorist attacks;
-- our ability to operate within the limitations imposed by financing
arrangements;
-- our ability to obtain financing on acceptable terms to finance our
growth;
-- our ability to integrate and successfully operate recently acquired
companies and any companies acquired in the future and the risks
associated with these companies;
-- our ability to develop and implement the operational and financial
systems needed to manage our growing operations; and
-- other risks that are described in our Form 10-K filed March 8, 2005 and
in other reports filed by us from time to time with the Securities and
Exchange Commission.
You should not place undue reliance on the forward looking statements. We assume no obligation to update any forward looking statement to reflect events or circumstances arising after the date on which it was made.
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