LKQ Sells Auto Salvage Business for $410M to Pacific Avenue Capital Partners.

LKQ Corp has sold its auto salvage business, Pick Your Part, to an affiliate of Pacific Avenue Capital Partners for an enterprise value of $410M. The business operates 61 salvage yards across the U.S., one of the largest networks in the industry. The sale is expected to allow LKQ to focus on its core business of providing automotive parts.

LKQ Corporation (NASDAQ:LKQ) has announced the sale of its Self Service segment, known as Pick Your Part, to an affiliate of Pacific Avenue Capital Partners, LLC. The transaction, valued at $410 million, includes customary post-closing price adjustments. The sale is expected to be completed in the fourth quarter of 2025, pending regulatory approval.

Pick Your Part operates 61 self-service salvage yards across the United States, making it one of the largest networks in the industry. The business has been a significant part of LKQ's history but no longer aligns with the company's long-term strategic objectives. LKQ aims to simplify its portfolio and focus on its core business of providing automotive parts.

Justin Jude, LKQ's president and chief executive officer, stated, "Today's announcement marks another important step in our multi-year transformation to simplify our portfolio and become a more focused, high-performing company with leadership positions in our priority segments." Jude also acknowledged the Pick Your Part team's contributions and expressed gratitude for their service.

LKQ plans to use the net proceeds from the sale to reduce debt and strengthen its balance sheet. The company has been building its business through thoughtful acquisitions over many years, and this sale is a strategic move to simplify and sharpen its focus.

Pacific Avenue Capital Partners, a Los Angeles-headquartered private equity firm, will acquire Pick Your Part. The firm is known for its expertise in corporate carve-outs and complex transactions in the middle market. Pacific Avenue's Managing Partner, Chris Sznewajs, commented, "We are proud to partner with LKQ on this transaction and to be a trusted partner for corporate sellers seeking seamless execution of complex carve-outs. PYP is a strong fit with our portfolio of industry-leading companies, and we are impressed by its ability to deliver affordable, high-quality parts to customers."

The transaction is expected to be completed during the fourth quarter of 2025, subject to the satisfaction of customary closing conditions, including receipt of required regulatory approval.

References:
[1] https://www.aftermarketnews.com/lkq-sells-pick-your-part-410m/
[2] https://www.morningstar.com/news/accesswire/1065223msn/affiliate-of-pacific-avenue-capital-partners-to-acquire-pick-your-part-from-lkq-corporation
[3] https://seekingalpha.com/news/4489158-lkq-sells-auto-salvage-business