LKQ is taking a major strategic step: the auto-parts giant has hired Bank of America to sell Keystone Automotive Industries, its specialty parts business, sources told Reuters.
💰 Deal Size & Valuation
- Keystone is internally valued at ~$1 billion
- LKQ market cap: ~$8B
- Shares have fallen 20% in the past 12 months despite restructuring efforts
🔍 Why the Sale Now?
Investor pressure is building. Many want LKQ to shed non-core assets and unlock shareholder value, especially as:
- The company already sold its self-service business for $410M in August
- Activist fund Ananym Capital is urging LKQ to sell its European operations next
- Interest from private equity buyers is growing
🏭 What Keystone Does
Keystone supplies specialty parts for cars & trucks:
➡️ bumpers
➡️ hoods
➡️ remanufactured wheels
➡️ other aftermarket components
The division has attracted private-equity interest for years, and LKQ has been holding meetings with buyers after a recent industry conference in Las Vegas.
📌 What to Watch
A successful sale could:
- Refocus LKQ on its stronger North American operation
- Generate substantial cash for share buybacks
- Set the stage for broader portfolio reshaping
2025 is shaping up to be a pivotal year for LKQ’s strategic realignment.