LKQ to Acquire Rhiag-Inter Auto Parts Italia S.p.A.

LKQ to Acquire Rhiag-Inter Auto Parts Italia S.p.A.

“Rhiag expands our addressable market with the addition of 10 new countries to our European footprint,” said Robert L. Wagman, president and CEO of LKQ Corporation.

LKQ Corporation announced that it has signed a definitive agreement to acquire the holding company of Rhiag-Inter Auto Parts Italia S.p.A (“Rhiag”), a leading pan-European business-to-business distributor of aftermarket spare parts for passenger cars and commercial vehicles, for an enterprise value of $1.1 billion. Rhiag has operations in Italy, the Czech Republic, Switzerland, Hungary, Romania, Ukraine, Bulgaria, Slovakia, Poland and Spain. It operates through 247 distribution centers and 10 warehouses, and serves more than 100,000 professional clients.

The transaction is expected to be completed early in the second quarter of 2016 and is subject to customary closing conditions and necessary regulatory approvals.

“Rhiag expands our addressable market with the addition of 10 new countries to our European footprint,” said Robert L. Wagman, president and CEO of LKQ Corporation. “Rhiag has a strong market position in Italy and the Czech Republic and experienced management teams in their respective markets. Clearly this acquisition will accelerate our strategy of creating a Pan-European aftermarket mechanical parts distribution business in this highly-fragmented $204 billion wholesale DIFM market.”

Luca Zacchetti, Rhiag Group CEO, added, “I believe that, combined with LKQ, Rhiag Group will be in an even stronger position to deliver its superior service level to customers across Europe. I am committed to pursuing our existing strategic goal of profitable market share growth.”

Rhiag’s revenue for the 12 months ended Sept. 30, 2015, was approximately $956 million, and LKQ expects the transaction to be accretive to its earnings in 2016. These projected results exclude restructuring and acquisition-related expenses.

The company intends to initially finance the acquisition with borrowings on its revolving credit facility and the assumption of Rhiag’s indebtedness. As of Sept. 30, 2015, the company had approximately $1.3 billion of available borrowing capacity on its credit facility.

“I have long admired Rhiag’s impressive track record of growth and strong distribution network,” said LKQ Corporation Board Member and Euro Car Parts Chairman Sukhpal Singh Ahluwalia. “We have numerous common suppliers, and I have worked closely with many of them for more than 30 years. I am confident that together with Rhiag, we will make our supplier relationships even stronger. LKQ and Rhiag share a commitment to serve our customers and a desire to expand into new markets. I look forward to welcoming the Rhiag team to the LKQ Europe family in a few months.”

Frank Ehmer of Apax Partners LLP added, “Rhiag is an example of a high-quality, market-leading distributor. I would like to thank Luca Zacchetti and the management team for delivering outstanding results across the business during our stewardship of the firm. The team achieved success on a number of organic growth initiatives as well as successfully executed on an M&A strategy. We believe the company is well-positioned to achieve success under LKQ ownership.”

You May Also Like

ASE Practice Tests Available Online

ASE is encouraging those pursuing certification to take the official practice tests as part of their test preparation process.

The National Institute for Automotive Service Excellence (ASE) reminds those preparing for ASE certification or recertification to consider taking the official practice tests as part of their test preparation process.

“Figuring out how to best study for an exam can be a challenge," said Matt Shepanek, vice president, credential testing programs for ASE. "Those preparing for ASE certification can get a good idea of what to expect by adding the official ASE practice tests to their study plans. ASE practice tests are delivered exclusively online and can help automotive professionals prepare by allowing them to try out questions of similar content and format to those used on the real ASE tests.”

Corby’s Collision Center: Since 1942

Bentley (Bud) and Evelyn Corby started Corby’s in a little gas station in Honeoye Falls, N.Y.

CIF Announces Enterprise as Repeat Annual Donor

Enterprise has donated for the fourth consecutive time at the Urgent Care (second highest) tier.

NABC Donates Recycled Ride to Central Georgia Mom

The NAB), GEICO and Five Star Collision Center-Wimbish recently donated a refurbished vehicle to a deserving mother of four.

NABC Donates Recycled Rides at NORTHEAST Show

The NABC, GEICO, Mountain View Auto and Collision Center of New Jersey donated two refurbished vehicles at the recent NORTHEAST Show.

Other Posts

Crash Champions Expands in Idaho

Crash Champions has announced the acquisition of Addison Collision Repair in Twin Falls, Idaho.

Auto Care Association Welcomes GAO Report on Vehicle Repair Restrictions

The Auto Care Association is renewing its call for Congress to advance federal Right to Repair legislation that protects independent business owners and consumers.

ProColor Collision Welcomes First Shop in Montana

ProColor Collision Gallatin Valley is operated by Robert Rinta and Simon Gratch, who both served honorably in the Montana National Guard.

Association News

The latest association news appearing on bodyshopbusiness.com.