December 2013: In this issue ...
LKQ Corporation announced that it has signed a definitive agreement to acquire Keystone Automotive Operations, Inc. (Keystone), a leading distributor and marketer of specialty aftermarket equipment and accessories in North America, for $450 million. The transaction is expected to be completed in the first quarter of 2014 and is subject to customary closing conditions and necessary regulatory approvals.
Established in 1971, Keystone has over 1,500 employees with 25 locations serving more than 20,000 specialty retailers and equipment installers throughout North America, offering a broad product line of over 300,000 SKUs from over 800 suppliers. Keystone markets products to serve the following six category segments: truck and off-road; speed and performance; recreational vehicle; towing; wheels, tires and performance handling; and miscellaneous accessories.
“LKQ will become a leading player in the specialty aftermarket equipment and accessories business with this acquisition,” stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation. “In addition, our addressable market opportunity in North America will be significantly expanded. The entire specialty aftermarket equipment and accessories industry is a highly fragmented $31 billion market, and Keystone’s current product categories represent about $5 billion of the industry.”
LKQ expects the transaction to be accretive to its earnings in 2014. Keystone’s revenue for 2014 is expected to be approximately $700 million with an EBITDA margin of approximately ten percent. These projected results exclude restructuring and acquisition related expenses. The Company intends to finance the acquisition with borrowings on its revolving credit facility and asset securitization program. As of September 30, 2013, the Company had approximately $1.2 billion available from these sources.
On October 1, 2013, B & R Auto Wrecking (www.autowrecking.com) completed its acquisition of I5 Auto & Truck Parts of Chehalis, Wash. This is B & R Auto Wrecking’s third location in Washington, and is the 12th location in the family across Oregon, Nevada and Washington. This full-service auto recycling facility is on the major freeway of the west coast, I-5, and located directly between major cities Seattle and Portland.
This location will serve as a major source of inventory supplying the collision repair shops and mechanic shops north to Seattle as well as south into Portland. The additional 25 acres, combined with 20 in Graham, Wash and seven in Spanaway, Wash. now totals 52 acres of late model foreign and domestic salvage. These three facilities also carry product to B & R Auto Wrecking’s Oregon locations, providing a large selection of recycled parts to their customer base.
“B & R is excited to add these 25 acres and 12 employees in Chehalis to our family” said Brian Perlenfein, Senior Business Advisor for B & R Auto Wrecking. “We want to continue to provide growth opportunities for our employees as well as have the inventory our customers need. By having this outstanding location and large facility, we can continue in that direction. The addition of this location expands our presence in the Northwest markets.”
B & R Auto Wrecking expects to employ over 50 people at the new facility. The new addition to the B & R Auto Wrecking family is located at 190 Estep Road, and has more than 2,500 cars and trucks in stock.
Professional Automotive Recycling Executive, Steve Levetan, Executive Vice President of Pull-A-Part, was awarded the prestigious “2013 President’s Award” from the Automotive Recyclers Association (ARA) at the 70th Annual ARA Convention & Exposition in Phoenix, Ariz., November 7 - 10, 2013.
The ARA President’s Award is an honor bestowed by the association’s President to an individual who has shown exemplary dedication to the industry through their service and work on behalf of the Association. Levetan works tirelessly for the professional automotive recycling industry.
Chris Wright, now the Immediate Past-President of ARA, and owner of Capital Auto Parts, Inc., located in Thomasville, Ga., remarked about his choice for the 2013 President’s Award, “Steve Levetan has spent over 40 years in the recycling industry. His history of service within his home state and neighboring states as well as his knowledge and expertise, is well respected. He is a true asset to the automotive recycling industry not only for this knowledge and expertise, but also for his willingness to give back to the industry. He is an active member of the ARA Governmental Affairs Committee and a tireless advocate on behalf of the profession - never missing an opportunity to make a difference whether it be organizing a coalition of stakeholders on a given issue; travelling to other states to support ARA members conducting facility tours with their legislators; speaking to Members of Congress; or giving back to his local community.”
“It is my honor and privilege to work with Chris Wright, the ARA Executive Committee, and the remarkable ARA staff, in support of all professional automotive recyclers,” said Steve Levetan of his award. “I am truly humbled by this recognition and look forward to continuing my ARA activities. I’d like to particularly thank my colleagues at Pull-A-Part for their support for my activities on behalf of the industry.”
Levetan maintains active memberships in the ARA, serving as a member of its Governmental Affairs Committee and Safety Committee; as well as the National Recycling Coalition, Georgia Chamber of Commerce Government Affairs Council (serving as Chair of the Environment Committee 2002 - 2004), and is a board member of the Georgia Recycling Coalition and Chair of the Sandy Springs Conservancy. In September of 2010, Levetan was appointed as one of the founding board members of the Georgia Department of Natural Resources Foundation, by the DNR Commissioner and in 2012 was elected as Chair of the Board.
Pull-A-Part, with headquarters in Atlanta, Ga., is an award-winning family business serving the do-it-yourself, used auto parts market. Founded in 1997, Pull-A-Part operates a growing network of 27 used auto parts superstores in 12 states. The company has been acclaimed for outstanding corporate citizenship and environmental responsibility by federal, state and local organizations. Pull-A-Part has made an exceptional commitment to resource conservation, waste reduction and pollution prevention. This orientation allows the company to provide affordable used auto parts to do-it-yourself consumers, while providing high quality scrap metal, fluids and plastics for recycling.
Pull-A-Part traces its roots to a business begun 105 years ago in Atlanta. The company is operated by the third and fourth generations of the founding family, whose values still affect every aspect of how Pull-A-Part functions, operationally and interpersonally.
In recent news, the Indiana Department of Environmental Management (IDEM) has awarded the Pull-A-Part Indianapolis location the Indiana Clean Yard-Gold Level award for auto salvage businesses. More information is available at: www.pullapart.com.
Professional Automotive Recycler Ed MacDonald, Maritime Auto Parts Ltd. in Truro, NS, Canada, gave his inaugural speech as the President of the Automotive Recyclers Association (ARA) at the 70th Annual ARA Convention & Exposition in Phoenix, Arizona, November 7 - 10, 2013. His tenure on the Executive Committee of the association, where he has served as Secretary, Second Vice President, and First Vice President, continues in a leading role to help shape and guide the association’s initiatives and directives as determined by the Board of Directors and membership of the ARA. MacDonald is among a select few to serve as ARA President who hail from Canada.
“I have been fortunate enough to be involved with the ARA Board of Directors for 12 years and the Executive Committee for the last three, as well as the Automotive Recyclers of Canada as a long-term founding member, helping it grow from baby steps to the quantum leap as a truly national association with worldwide recognition. I believe that the effective model of auto recycling in North America, which is based on free enterprise, is the way auto recycling should continue to grow here, and beyond,” said Ed MacDonald. In his speech, MacDonald said, “I am deeply honoured and humbled to stand before you this evening to accept the ARA Presidential Gavel, to pay tribute to all who have come before me and help pave the way for those who will follow. And for the many hands that hold the keys to the kingdom, I hope during my tenure as ARA President to establish in the ARA individual recycler the collective mindset of these two enduring principles: strength through partnerships, and growth through succession.
“Changes in the marketplace are deluging us on a daily basis and to ensure that ARA is a major player in this economically driven arena, I intend to continue what others before me have begun - the pursuit of long-term relationships / partnerships with major stakeholders in our industry. Furthermore, we are principally made up of family-owned businesses. We rightly take great pride in the business model that is based on family involvement. I know firsthand the pride of passing on a successful business to my son, Andrew, who has now taken over the keys of Maritime. He and others like him are now the stewards of and rightful owners of the keys to the kingdom and it is through this succession of experience, wisdom, fresh new creative and dynamic hands that the professional automotive recycling industry will trump all others,” MacDonald added.
MacDonald, with his longtime partner Lana, purchased Maritime Auto Parts Ltd. in 1988, and were successful owner-operators of the business until last year when their son Andrew MacDonald bought the family business. MacDonald still works alongside Andrew in the business.
Maritime Auto Parts Ltd., (www.maritimeauto.com), is a full service auto recycling facility and parts supplier of new and used automotive parts.
The Automotive Recyclers of Minnesota (ARM) Foundation is now accepting applications for the 2014 scholarship cycle. The ARM Foundation was created to assist ARM (full) members and their dependents with the cost of a post-secondary education. Any yard owner, yard owners’ dependents, employees or dependents of employees (employees that have been employed with you for at least one full year as of January 1, 2014) qualify to apply. The ARM Foundation awarded six $1,000 scholarships for the 2013 year.
he deadline to apply for a scholarship is March 1, 2014. All applications must be complete and postmarked by that date or they cannot be considered.
The application materials may be downloaded off of the ARM website (www.autorecyclersmn.net). Winners will be informed and checks will be sent in mid-2014. All checks will be made out to the college, technical school or university the student will be attending. If no school has been selected it is the sole responsibility of the scholarship recipient to inform the ARM Foundation of the college, technical school or university to be attended no later than August 31, 2014, or the scholarship will be forfeited.
January 2014 Deadlines
December 26, 2013: Listings for The Locator Magazine.
January 2, 2014: Display ads for The Locator Magazine.
January 7, 2014: The Locator Magazine goes to press.