LKQ Corp. is exploring a potential sale of its Specialty segment.
The Specialty segment is comprised of NTP-Stag, SeaWide Distribution, Keystone Automotive Operations Inc. and the Earl Owen Company, an LKQ source confirmed.
LKQ President and CEO Justin Jude said the Specialty segment is a strong business supported by an exceptional team.
“To unlock its full potential, we initiated a strategic review earlier this year to evaluate opportunities for the business under new ownership,” Jude said. “Current market conditions present an attractive environment to assess divestiture options and ensure we maximize the value of this best-in-class business.”
Jude is familiar with the segment. He led Keystone Automotive Operations’ 2014 purchase of Stag-Parkway. He was the Specialty segment president from June 2014 through July 2015. In July 2015, Jude led Keystone Automotive Operations’ acquisition of The Coast Distribution System. The company reorganized its Specialty segment after the acquisition to create NTP-Stag and named Bill Rogers the president of the national distributor.
Jude has been with LKQ Corp. since 2004. He became CEO in June 2024.
Jude said the potential Specialty segment sale review aligns with the company’s ongoing strategy to simplify its portfolio and concentrate on core segments.
“We recently demonstrated our commitment to this strategy with the successful sale of our Self-Service segment,” Jude said. “Proceeds from a potential transaction will be allocated in accordance with the capital allocation framework previously outlined to shareholders by management, including maintaining a strong balance sheet and returning value to our shareholders through share repurchases. Importantly, we will only pursue a transaction that appropriately reflects our view of the market value of the business.”
The company said there is no deadline or definitive timetable set for completion of a potential sale, and there can be no assurance that this process will result in a sale or any other transaction.
The company said it does not intend to comment on or provide updates regarding this process until it determines further disclosure is appropriate or required.
LKQ has engaged Bank of America as financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel to assist with the process.
