Thursday June 2
Insurance Auto Auctions Announces Announces Acquisition in Pennsylvania and Closing of Company Acquisition by Kelso & CompanyInsurance Auto Auctions, Inc., a provider of automotive salvage auction and claims processing services in the United States, has announced that it has received the shareholder votes necessary to complete the acquisition of IAA by an affiliate of Kelso & Company, a New York based private equity firm, for approximately $400 million. As previously announced, IAA's stockholders will receive $28.25 per share in cash as a result of the transaction.
Tom O'Brien, President and Chief Executive Officer of IAA, said, "IAA has accomplished many of its financial, operational and strategic goals over the past few years. Looking ahead, we will continue to focus on improving the products we offer and the level of service we provide to both our insurance company suppliers and our growing network of buyers."
Michael B. Goldberg, Managing Director of Kelso & Company, said, "We are pleased to have the opportunity to invest in IAA. IAA has established itself as a leader in the automotive salvage industry, and we will support IAA's growth objectives, including the expansion of its geographic footprint, in the years ahead."
In other company news, IAA has acquired Insurance Recovery Center, Inc. located just outside Altoona, Pennsylvania. This 15-acre facility represents IAA's third location in the state and will leverage its existing locations in both Pittsburgh and Philadelphia.
"One of our ongoing endeavors at IAA has been to expand our footprint in the northeastern United States, and this acquisition aligns perfectly with that goal," said Tom O'Brien, CEO of IAA. "As we identify opportunities such as this we will take action where we can leverage existing facilities to add new buyers to our growing network. We will continue to identify additional areas in which to supplement our current presence in order to expand our geographic reach."
Insurance Auto Auctions, Inc., founded in 1982, currently has 80 sites across the United States.
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