LKQ CORPORATION (NASDAQ:LKQ) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
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Entry into a Material Definitive Agreement.
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Stock and Asset Purchase Agreement (the Agreement) to sell the
OEM glass manufacturing business of its Pittsburgh Glass Works
subsidiary to a subsidiary of Vitro S.A.B. de C.V. for a sale
price of $310 million, subject to potential post-closing purchase
price adjustments. The Agreement contains customary
representations and warranties, covenants and conditions, and
closing will be subject to receipt of necessary regulatory
approvals. Subject to the satisfaction of all conditions to
closing, the transaction is expected to be completed in the first
quarter of 2017. The foregoing description of the Agreement is
qualified in its entirety by reference to the complete text of
the Agreement, which will be filed as an exhibit to LKQ’s annual
report on Form 10-K for the year ending December 31, 2016.
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Item 8.01
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Other Events.
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business met the criteria to be classified as held for sale in LKQs
consolidated financial statements. As a result, the assets related
to the OEM business will be reflected on LKQs consolidated balance
sheet at the lower of the net asset carrying value or fair value
less cost to sell. LKQ is in the process of evaluating the
accounting for the disposition but currently expects to record a
non-cash pretax charge in the range of approximately $25 – $35
million in the fourth quarter of 2016 related to the impairment of
long-lived assets associated with the OEM business. The long-lived
assets primarily consist of property, plant equipment. In addition,
LKQ is unable at this time to determine the size or impact of
income tax consequences related to the transaction. LKQ will fully
describe and disclose the amount of the charge in its annual report
on Form 10-K for the year ending December 31, 2016.
execution of the Agreement. A copy of the press release is attached
hereto as Exhibit 99.1 and incorporated by reference herein.
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Item 9.01
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Financial Statements and Exhibits.
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Exhibit
Number
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Description of Exhibit
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99.1
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Press release dated December 19, 2016.
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About LKQ CORPORATION (NASDAQ:LKQ)
LKQ Corporation (LKQ) is a global distributor of vehicle products, including replacement parts, components and systems used in the repair and maintenance of vehicles, as well as specialty vehicle products and accessories. The company distributes a range of products to collision and mechanical repair shops, including aftermarket collision and mechanical products, and recycled collision and mechanical products. It operates through four segments: Wholesale – North America; Europe; Specialty, and Self Service. Its wholesale automobile product operations sell five product types (aftermarket, recycled, remanufactured, refurbished and original equipment manufacturers (OEMs) parts). The European wholesale operating segment includes Euro Car Parts Holdings Limited (ECP). The Specialty operating segment includes Keystone Automotive Holdings, Inc. (Keystone Specialty). The Company’s self service segment retail operations sell parts from older cars and light-duty trucks directly to consumers. LKQ CORPORATION (NASDAQ:LKQ) Recent Trading Information
LKQ CORPORATION (NASDAQ:LKQ) closed its last trading session up +0.03 at 32.02 with 1,748,313 shares trading hands.
