LKQ Corporation has entered into a definitive agreement to sell its Self Service segment, commonly known as Pick Your Part. The buyer is an affiliate of Pacific Avenue Capital Partners, and the deal carries an enterprise value of $410 million. This figure is subject to standard post-closing adjustments.
The decision to pursue this sale followed a vigorous competitive bidding process, which attracted interest from various parties, underscoring the value of the Self-Service segment in the current market. By engaging in this sale, LKQ aims to leverage the proceeds to enhance its financial standing, specifically by repaying debt and reinforcing its balance sheet.
Looking ahead, the completion of this transaction is anticipated in the fourth quarter of 2025. The closing is contingent upon fulfilling customary conditions, including obtaining the necessary regulatory approvals. LKQ is optimistic about this transition, viewing it as a strategic move to enhance its overall financial health and industry positioning.
Jefferies served as the financial advisor to LKQ, and Wachtell, Lipton, Rosen & Katz served as the legal advisor to LKQ in connection with the transaction.
KEY QUOTES:
“Today’s announcement marks another important step in our multi-year transformation to simplify our portfolio and become a more focused, high-performing company with leadership positions in our priority segments. While Pick Your Part has played a meaningful role in our history, we believe that it no longer aligns with our long-term strategy. As we have said, after having built the Company through thoughtful acquisitions over many years, we have reached a point where it makes sense to assess opportunities to simplify and sharpen our focus. We will continue to evaluate opportunities to advance our strategic objectives so that we can best serve customers and create value for our shareholders.”
“We know the Pick Your Part team will continue to be best-in-class operators under the ownership of Pacific Avenue Capital Partners. We thank all Pick Your Part employees for their efforts and years of service at LKQ and wish them the best.”
Justin Jude, LKQ’s President and Chief Executive Officer
