CHICAGO — LKQ Corp. recently acquired several recycled parts businesses consisting of two facilities in Houston, TX, with a total footprint of approximately 46 acres; a 10 acre facility in Aurora, CO (a suburb of Denver); and a 12 acre facility in Daytona Beach, FL.
These acquisitions, which had 2005 aggregate revenues of approximately $24 million, follow three other recent acquisitions made in June, expanding the company’s reach into the Los Angeles, CA, Portland, OR and Seattle, WA markets.
LKQ expects these businesses will generate approximately $13 million of revenue and 2 cents of diluted earnings per share for LKQ during its period of ownership in 2006.
“We are very pleased to be entering these large and important new geographical markets,” said Joe Holsten, LKQ’s president and chief executive officer. “The acquired business in Houston sells primarily to the retail public with a small amount of revenue coming from the professional repair market. While we will merge the wholesale professional repair business into our existing Houston operations, the retail self service operations provide for an important market entry in the fourth largest city in the country. Similarly, we have been evaluating the Denver market for a considerable period of time, and believe this retail business operation is an excellent market entry for us. While the Daytona Beach facility is a new market for us as well, this operation will complement our current base in Orlando. Finally, we are highly impressed with the quality of management that we gain through these transactions.”
For more information about LKQ, go to: lkqcorp.com .
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