LKQ Corp. has entered into a definitive agreement to sell the OEM glass manufacturing business of its Pittsburgh Glass Works (PGW) subsidiary to a subsidiary of Vitro S.A.B. de C.V., a leading glass manufacturer based in Mexico. The sale price is $310 million, subject to potential post-closing purchase price adjustments.
As part of the transaction, LKQ and Vitro entered into a multi-year supply agreement pursuant to which LKQ’s ongoing aftermarket glass distribution business will purchase a specified amount of its automotive glass from Vitro at specified prices.
The transaction is expected to be completed in the first quarter of 2017 and is subject to customary closing conditions and necessary regulatory approvals.
“We are very pleased with this transaction and look forward to a seamless transition for our OEM glass customers and employees. PGW’s industry-leading OEM business fits well with Vitro’s long-term growth strategy within the automotive glass manufacturing industry, and this divestiture allows LKQ to focus on our aftermarket glass distribution operations and the synergies that exist with our core North American auto parts distribution business,” said Robert Wagman, president and CEO of LKQ Corp.
LKQ will report the financial information for the OEM glass manufacturing business as discontinued operations in its fourth quarter and full year 2016 financial statements, which will be released in late February 2017 and discussed during LKQ’s fourth quarter earnings call.