Financial news from across the industry dominates this week’s recap of top news.
First in our look back, UCI Holdings Limited, the parent company of UCI International, reports results for the fourth quarter ended Dec. 31, 2010. Revenue of $237 million was up $18.2 million, or 8.3 percent, compared to the year-ago quarter. The company reported that revenue increased in the retail, OEM and heavy duty channels, with a decline in the traditional channel and a slight decrease in the OES (new car dealer service) channel. UCI was acquired in late January by an affiliate of Rank Group Limited of New Zealand.
In that same report, UCI announced the resignation of its CFO Mark Blaufuss, who will leave his post effective April 29, to pursue other opportunities. The company has not yet announced a successor.
In the distribution segment this week, private equity firm Platinum Equity has acquired a majority interest in Keystone Automotive Holdings Inc., parent company of Keystone Automotive Operations. The firm says it will work with Keystone’s management team on an operational plan to improve the company’s ability to compete in the specialty aftermarket auto parts industry. Platinum was previously Keystone’s largest bond holder and worked closely with Keystone and the company’s other debt holders to develop and execute a recapitalization plan that resulted in Platinum becoming the majority owner of the business. Ed Orzetti, Keystone CEO since 2006, will continue to lead the company under Platinum Equity’s ownership.
In other financial news, LKQ Corp. has entered into a definitive credit agreement with several lenders to borrow up to $1 billion. The new facility replaces the company’s $750 million facility that would have expired in October 2013. LKQ said proceeds will initially be used for repayment of the prior credit facility and for general corporate purposes. The company said it anticipates a first-quarter 2011 write-off of debt issuance costs of approximately $6 million related to the retired credit facility. "The new revolving credit facility and term loan give LKQ additional flexibility to execute our growth plans at attractive rates," said Joseph Holsten, LKQ’s vice chairman and co-CEO.
Remy International this week announced it has filed a registration statement with the U.S. Securities and Exchange Commission relating to a proposed public offering of shares of its common stock. As much as $100 million could be raised through the IPO, according to reports. Proceeds from the stock offering would be used for general corporate purposes, possibly including debt reduction, acquisitions or geographic expansion, Remy said.
Finally, we step back from the hubbub of the week to get a little perspective on leadership from industry veteran and leadership consultant John Passante. In his latest guest commentary for aftermarketNews, Passante writes about giving people the opportunity to change and how industry leaders must encourage employees to step outside their comfort zones.
