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The Independent Automotive Aftermarket Federation

LKQ Divests a Majority of its Bulgarian Business


Date: 25-Oct-2019

LKQ Corporation has announced it has merged its subsidiary Auto Kelly Bulgaria EOOD with Elit Kar OOD, creating one of Bulgaria's leading distributors of automotive spare parts. LKQ now owns a 20% equity interest in the combined business, which will continue to operate under both the Elit Car Group and Auto Kelly brand names. In addition, the combined business will acquire parts from LKQ's aftermarket supply chain.

Dominick Zarcone, President and Chief Executive Officer of LKQ, stated, “The rationalization of our European asset base and divestiture of non-core businesses is one of the many initiatives that will help improve the EBITDA margins of LKQ Europe. We believe the Auto Kelly Bulgaria business will perform strongly under the leadership of Elit Kar, and we look forward to a successful partnership, as both an equity holder and supplier.”  

Arnd Franz, CEO LKQ Europe added: “For us the satisfaction of our customers comes first. Together with ELIT Kar OOD, our Bulgarian business can now offer our customers significantly more value and will enjoy even greater opportunities for growth. The rationalization of our distribution is a key part of LKQ’s strategy in Europe and we are looking forward to working with our new partners in Bulgaria.”

On April 25, 2019 the Company announced that it had identified several businesses that it intended to sell over the course of the next year. These assets are held on the balance sheet as net assets held for sale, and with the disposal of these small, non-core businesses, the Company is attempting to simplify its operating model and improve margins.

Terms of the transaction were not disclosed. 

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