LKQ to acquire Birch Hill-backed Uni-Select in C$2.8bn deal

• The deal is expected to be closed in the second half of 2023
• Uni-Select is backed by Birch Hill Equity Partners, a Canadian mid-market private equity firm
• LKQ is a Chicago-headquartered provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles

LKQ Corp has agreed to acquire Uni-Select, a Canadian distributor of automotive refinish and industrial paint products and aftermarket parts, for C$48.00 per share in cash. The deal represents a total enterprise value of about C$2.8 billion ($2.1 billion).

The deal is expected to be closed in the second half of 2023, subject to relevant regulatory nods.

Uni-Select, headquartered in Boucherville, Quebec, is backed by Birch Hill Equity Partners, a Canadian mid-market private equity firm. Birch Hill, which in 2019 invested an additional C$75 million in the company, agreed to vote in favour of the sale to LKQ.

“The transaction offers compelling value and liquidity to our shareholders and is the culmination of the efforts by our dedicated team to improve our operations and drive efficiencies with a focus on excellent customer service,” said Brian McManus, executive chair, and CEO of Uni-Select, in a statement.

Further, the deal is expected to generate about $55 million of annual run-rate cost synergies by the third year following closing, plus incremental revenue and margin opportunities across Uni-Select and LKQ, the two companies said.

LKQ plans to fund the deal through a combination of cash on hand and new deb

LKQ is a provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company, headquartered in Chicago, Illinois, has operations in North America, Europe and Taiwan.