CHICAGO — LKQ Corp. has announced that it has received clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR), in connection with its pending acquisition of Keystone Automotive Industries, Inc. The waiting period under HSR expired on Sept. 4. Expiration of the HSR waiting period was a condition to completion of the acquisition. The completion of the acquisition remains subject to other customary conditions including approval by Keystone’s shareholders. LKQ Corp. continues to expect that the Keystone acquisition will close early in the fourth quarter of this year.
LKQ Corp. also announced a public offering of 10,000,000 shares of its common stock. The common stock to be offered will consist of 8,500,000 shares to be issued and sold by LKQ and 1,500,000 shares to be sold by certain selling stockholders of the company. LKQ will not receive any of the proceeds from the sale of shares by the selling stockholders. The company expects to grant the underwriters an option to purchase up to 1,500,000 additional shares of common stock solely to cover over-allotments, if any.
LKQ said proceeds from the offering will be used to repay existing indebtedness and to fund a portion of the purchase price for the Keystone acquisition. LKQ previously received a $1.09 billion senior secured financing commitment from Deutsche Bank and Lehman Brothers Inc., subject to customary conditions, to fund the Keystone acquisition and to refinance existing debt. Assuming completion of the equity offering, the company expects to reduce its financing from Deutsche Bank and Lehman Brothers Inc. to approximately $850 million.
