LKQ Corporation Announces Entry Into Canada With a Business Acquisition
CHICAGO, June 4 -- LKQ Corporation today announced that on May 31, 2007 it acquired a recycled parts business near Toronto, Canada. The acquisition marks the first entry by LKQ into Canada. LKQ also recently amended its bank credit facility to allow borrowings of Canadian dollars to facilitate growth plans in Canada. In a separate transaction, LKQ acquired an aftermarket business in Louisiana. These businesses generated annual revenue of approximately $9.0 million in the aggregate. Terms of the transactions were not disclosed.
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Dominion Auto Recycling located near Toronto, Canada, serves the professional repair market. This business operates out of an approximately 13 acre facility. Cenla Body Parts is an aftermarket business located in Alexandria, Louisiana. This business has approximately 17,000 square feet of warehouse space dedicated to aftermarket parts. The Cenla acquisition helps us to fill out our aftermarket parts network in the southeastern portion of the United States.
We expect these two recent acquisitions on a combined basis to provide approximately $0.01 in diluted earnings per share.
"We are pleased with these acquisitions and with our acquisition pipeline," said Joe Holsten, President and Chief Executive Officer. "We intend to continue to grow our network through acquisitions of recycled, aftermarket and self-service businesses in the U.S. and now in Canada."
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 and refurbished wheels. LKQ operates over 130 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 February 28, 2007
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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