By Lisa Kerner
Charlotte, N.C., July 17 - Keystone Automotive Industries, Inc.'s board unanimously approved the acquisition of the company by LKQ Corp. for $48.00 per share in cash, or about $811 million on a fully diluted basis.
The merger is expected to close early in the fourth quarter of 2007 and is subject to Keystone shareholders' approval.
A $30 million termination fee is included in the companies' merger agreement, according to a form 8-K filing with the Securities and Exchange Commission.
"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," Keystone president and chief executive officer Rick Keister said in a company news release.
"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," Keister added.
Keystone was advised by J.P. Morgan Securities Inc. and Latham & Watkins LLP.
Chicago-based LKQ provides recycled light vehicle original equipment manufacturer products and aftermarket collision replacement products. Keystone, based in Pomona, Calif., distributes automotive body parts, bumpers and remanufactured alloy wheels to collision repair shops.
| Acquirer: | LKQ Corp.
|
| Target: | Keystone Automotive Industries, Inc.
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| Transaction total: | $811 million
|
| Price per share: | $48.00
|
| Termination fee: | $30 million
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| Announcement date: | July 17
|
| Expected closing: | Fourth quarter
|
| Stock price for target: | Nasdaq: KEYS: $43.61 on July 16
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