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Letter to the Editor
Tuesday July 17
Keystone Automotive Industries Signs Merger Agreement With LKQ Corporation
Keystone Automotive Industries, Inc. has announced it has signed a definitive merger agreement with LKQ Corporation in which LKQ will acquire Keystone for $48.00 per share in cash, representing an aggregate purchase price of approximately $811 million on a fully diluted basis.The merger is expected to close early in the fourth quarter of calendar 2007, subject to the approval of Keystone's shareholders, regulatory approvals, and other customary conditions. The merger agreement does not contain a financing contingency. Keystone's board of directors has unanimously approved the terms of the merger agreement and has resolved to recommend that the Keystone shareholders approve the transaction.
``In addition to providing tremendous value to our shareholders, this transaction delivers a true combination of complementary strengths. Keystone's aftermarket product offerings are a perfect fit with LKQ's leading presence in the recycled parts business. We envision an outstanding combined distribution network, greatly enhanced by Keystone's exceptionally strong organization -- one that has grown dramatically over the last decade. Today, Keystone is the leading distributor of aftermarket collision replacement parts -- comprised of a highly respected team dedicated to quality, superior customer service and growth. The Keystone-LKQ merger presents unique opportunities to provide a comprehensive program of aftermarket, remanufactured and recycled parts to our customers, and we look forward to realizing these opportunities,'' said Rick Keister, Keystone's president and chief executive officer.
J.P. Morgan Securities Inc. is acting as sole financial advisor to Keystone, and Latham & Watkins LLP is acting as Keystone's legal advisor.
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