LKQ sells self-service segment to equity firm for $410 million

LKQ announced Tuesday that it is selling its self-service segment to Pacific Avenue Capital Partners for an enterprise value of $410 million. 

A news release says the sale of the segment, known as Pick Your Part, was the result of a “robust” competitive bidding process that attracted interest from several parties. 

“Today’s announcement marks another important step in our multi-year transformation to simplify our portfolio and become a more focused, high-performing company with leadership positions in our priority segments,” said Justin Jude, LKQ’s president and chief executive officer, in the release. “While Pick Your Part has played a meaningful role in our history, we believe that it no longer aligns with our long-term strategy. As we have said, after having built the Company through thoughtful acquisitions over many years, we have reached a point where it makes sense to assess opportunities to simplify and sharpen our focus. We will continue to evaluate opportunities to advance our strategic objectives so that we can best serve customers and create value for our shareholders.”

The net proceeds from the sale will be used to strengthen the company’s balance sheet through debt repayment, the release says. The sale is expected to be completed during Q4. It remains subject to the customary closing conditions, including receipt of required regulatory approval. 

“We know the Pick Your Part team will continue to be best-in-class operators under the ownership of Pacific Avenue Capital Partners,” the release says. “We thank all Pick Your Part employees for their efforts and years of service at LKQ and wish them the best.”

Pacific Avenue Capital, based in Los Angeles and Paris, describes itself on its website as a middle-market private equity firm with experience in corporate divestitures and carve-outs.

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LKQ logo courtesy of LKQ.