The Quebec auto parts supplier Uni-Select is going into the hands of American interests.
Chicago-based LKQ Corporation and Uni-Select Inc. announced in a joint press release Monday that they have entered into a definitive agreement to acquire all of the issued and outstanding shares of Uni-Select by LKQ for consideration cash of C$48 per share, representing a total enterprise value of approximately C$2.8 billion. The sum of C$48 represents a premium of 19.2% over the closing price of Uni-Select’s stock last Friday.
Uni-Select, which was founded in 1968 in Boucherville, Montérégie, is known for the distribution of automotive paints, industrial coatings, accessories and other automotive products for the automotive aftermarket. The company has over 5,200 employees, 15 distribution centers and over 400 branches.
Uni-Select Executive Chairman and CEO Brian McManus says the deal offers attractive value and cash to shareholders. In his view, the transaction will combine complementary strengths within the larger, multidisciplinary and growing LKQ team.
Uni-Select’s Board of Directors has approved the transaction and recommends that its shareholders vote in favor. The transaction is expected to close in the second half of 2023, subject to customary conditions.
For fiscal 2022, Uni-Select earlier in February reported net income of $65 million, or $1.32 per share, compared to $895,000, or $0.02 per share, in 2021. Its sales improved 7.4% to $1.7 billion.