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Letter to the Editor
Monday July 10
LKQ Corporation Acquires Recycled Parts Businesses
LKQ Corporation has recently acquired several recycled parts businesses with aggregate revenue in 2005 of approximately $24 million. Terms of these transactions were not disclosed.The company believes these businesses will generate approximately $13 million of revenue and $0.02 of diluted earnings per share for LKQ during its period of ownership in 2006.
These business acquisitions consist of two facilities in Houston, Texas with a total footprint of approximately 46 acres; a 10 acre facility in Aurora, Colorado (a suburb of Denver); and a 12 acre facility in Daytona Beach, Florida. These businesses consist of operations that sell primarily into the retail market. The Houston facilities also include some operations that sell into the professional repair market.
"We are very pleased to be entering these large and important new geographical markets," said Joe Holsten, LKQ's President and Chief Executive Officer. "The acquired business in Houston sells primarily to the retail public with a small amount of revenue coming from the professional repair market. While we will merge the wholesale professional repair business into our existing Houston operations, the retail self service operations provide for an important market entry in the fourth largest city in the country. Similarly, we have been evaluating the Denver market for a considerable period of time, and believe this retail business operation is an excellent market entry for us. While the Daytona Beach facility is a new market for us as well, this operation will complement our current base in Orlando. Finally, we are highly impressed with the quality of management that we gain through these transactions."
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 and refurbished wheels. LKQ operates over 100 facilities offering its customers a broad range of replacement systems, components, and parts to repair light vehicles.
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