Tuesday February 14
LKQ Corporation Acquires TranswheelLKQ Corporation has acquired Transwheel Corporation, an aluminum alloy wheel refurbishing and distribution business. Terms of the transaction were not disclosed.
Transwheel currently operates refurbishing and distribution facilities in Huntington, IN; Manchester, CT; Williamsport, MD; and Tampa, FL and distribution locations in Ferndale, MI and Bensenville, IL. Transwheel's third party revenue for 2005 was approximately $28.5 million from the sale or restoration of wheels.
Transwheel markets its products electronically to the insurance and collision repair industry via the three primary estimating systems, Mitchell, ADP, and CCC. Through these systems, shops and insurance carriers gain immediate access to Transwheel's extensive inventory of new and refurbished aluminum, chrome and steel wheels as well as a large selection of refinished wheel covers.
"This acquisition allows us to market yet another product line to our current customer base and complements our existing recycled and aftermarket inventory. The acquisition of Transwheel furthers our goal of becoming a 'one-stop' shop for our customers. In addition LKQ and Transwheel distribute to some of the same geographic markets, which will provide additional distribution synergies," said Joe Holsten, President and Chief Executive Officer. "As a testament to its quality, Transwheel is recognized by several original equipment manufacturers for its best practice standards, which allows Transwheel to perform warranty work for dealerships on behalf of the automakers. This acquisition will give us the high quality wheels and core fulfillment required to meet the needs of a growing demand for refurbished wheels."
LKQ Corporation is the largest nationwide provider of recycled light vehicle OEM products and related services and the second largest nationwide provider of aftermarket collision replacement products. LKQ operates over 100 facilities offering its customers a broad range of replacement systems, components, and parts to repair light vehicles.
©2006 Collision Repair Industry INSIGHT