Québec-based Uni-Choose, Canada’s largest provider of automotive refinish, industrial paint and greater than two million substitute elements within the auto business, is being bought by U.S.-based LKQ Company for about $2.8 billion in money.

Primarily based in Chicago, LKQ provides aftermarket and recycled elements, focusing primarily on RVs, vans and off-roading, towing, pace and efficiency, wheels, tires and efficiency dealing with.

Each firms function in North America and the UK.

“This acquisition additional enhances LKQ’s world automotive car elements distribution enterprise,” LKQ Company CEO Dominick Zarcone mentioned in a press release. “Uni-Choose’s North American automotive refinish paint and mechanical elements distribution operations complement LKQ’s present footprint and can enable us to distribute a broader array of merchandise to our prospects.

Uni-Choose’s FinishMaster division provides paint and refinishing merchandise to automotive dealerships, collision restore centres and fleet operators, principally in the US.

“We’re additionally happy that the acquisition will enable LKQ to construct a major presence in Québec, together with Uni-Choose’s Boucherville, Québec head workplace, increasing upon LKQ’s already present enterprise operations in that province,” Zarcone mentioned.

Uni-Choose CEO Brian McManus mentioned the deal will mix the “complementary strengths” of the businesses.

LKQ says FinishMaster “improves LKQ’s scale and product combine to compete on this enticing and rising phase with minimal integration danger.”

The transaction value of $48 per share represents a premium of 19.2 per cent to Uni-Choose’s closing share value on Feb. 24, 2023. LKQ intends to fund the transaction by a mixture of money readily available and new debt.

The transaction, which wants shareholder approval, additionally requires antitrust clearances in Canada, the U.S. and the U.Okay. and approval underneath the Funding Canada Act.

In reference to the deal, LKQ says it should look to promote GSF Automobile Elements U.Okay., Uni-Choose’s U.Okay. based mostly mechanical elements distribution enterprise.

With recordsdata from the Canadian Press.