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 Corp (NASDAQ: LKQ) has sold its auto salvage business, Pick Your Part (PYP), to an affiliate of Pacific Avenue Capital Partners for an enterprise value of $410 million. The transaction, expected to be completed during the fourth quarter of 2025, subject to customary closing conditions, marks a strategic move by LKQ to focus on its core business of providing automotive parts [1].

PYP operates 61 salvage yards across the United States, one of the largest networks of self-service salvage yards in the industry. Under Pacific Avenue's stewardship, PYP will continue to meet the needs of its customers and drive forward strategic growth initiatives to strengthen its leading position [1].

Pacific Avenue Capital Partners, a global private equity firm headquartered in Los Angeles with an office in Paris, specializes in corporate divestitures and other complex situations in the middle market. With approximately $3.8 billion in assets under management as of July 31, 2025, Pacific Avenue has a proven track record of navigating complex transactions and unlocking value through operational improvement, capital investment, and accelerated growth [1].

The sale is part of LKQ's broader strategy to simplify its operations and allocate capital more effectively. During LKQ's latest earnings call, CEO Justin Jude indicated that the company was considering the sale of some business units to accelerate its simplification strategy and capital allocation priorities [2].

The transaction is expected to provide a modest boost to LKQ shares, as the company aims to refocus its efforts on its core competencies and potentially unlock additional value for shareholders.

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