LKQ To Sell Self Service Segment In $410 Million Deal

LKQ Corp (LKQ) announced on Tuesday that it has entered into a definitive agreement to sell its Self Service segment to an affiliate of Pacific Avenue Capital Partners for an enterprise value of $410 million.

The company added that the net proceeds from the sale will be used to strengthen its balance sheet through debt repayment, and the transaction is expected to be completed during the fourth quarter of 2025.

Retail sentiment on LKQ remained unchanged in the ‘bearish’ territory, with message volumes at ‘low’ levels, according to data from Stocktwits. Shares of the company were up marginally before the bell.

“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,” said LKQ’s CEO Justin Jude.

“While Pick Your Part has played a meaningful role in our history, we believe that it no longer aligns with our long-term strategy,” he added.

“As we have said, after having built the company through thoughtful acquisitions over many years, we have reached a point where it makes sense to assess opportunities to simplify and sharpen our focus,” said Jude, adding that the company will continue to evaluate opportunities to advance its strategic objectives.

LKQ is a provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles, with operations in North America, Europe, and Taiwan. Shares of LKQ declined nearly 14% this year and have fallen over 25% in the last 12 months. 

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