Vehicle repair parts maker LKQ Corporation has agreed to acquire AkzoNobel Coatings Inc.’s U.S. paint distribution business, consisting of 40 locations.
LKQ says the acquisition will further its ability “to supply the automotive collision industry with a full line of parts and paint solutions.” The 40 additional locations “will supplement LKQ’s existing paint distribution business and provide the company with additional expertise to assist its customers with their paint needs,” LKQ said in a release.
Terms of the agreement were not disclosed.
AkzoNobel described the agreement as a partnership, rather than a sale. The company said the agreement would expand its U.S. automotive repair distribution network through divestment of the company-owned stores, which fall under AkzoNobel’s Automotive and Aerospace Coatings business.
|LKQ will distribute Sikkens, Lesonal, U Tech and other AkzoNobel brands at more than 300 locations and take over 40 AkzoNobel stores.|
Leif Darner, of AkzoNobel’s Performance Coatings business, said the deal would enable the company “to focus on growing our market share in mature markets.”
“By partnering with LKQ, we will be able to offer our products to a wider set of customers and strengthen our leadership position in one of our most important markets.”
LKQ will distribute all of AkzoNobel’s paint lines, including the Sikkens, Lesonal and U-Tech brands.
The transaction impacts all AkzoNobel branch operations in the US that are involved with automotive repair direct sales, AkzoNobel said in a statement.
With nearly 300 facilities, LKQ is the largest nationwide provider of aftermarket recycled and refurbished collision and mechanical replacement products for the automotive and truck market.
“LKQ Corporation is one of the most recognized and respected names in the automotive industry, and we are proud to have them as part of our growing North American network of distribution partners,” said Jim Rees, Managing Director of AkzoNobel’s Automotive and Aerospace Coatings business.
LKQ’s co-CEO Robert L. Wagman said the company had relationships “with thousands of collision repair shops throughout the United States.”
“By adding AkzoNobel’s portfolio of brands to our product offerings, we believe this transaction, coupled with our experience and extensive distribution network, offers LKQ an opportunity for continued growth and market penetration in the paint distribution business.”
The transaction is expected to become effective May 27, subject to customary closing conditions.