Monday, 13 July 2015 23:17

LKQ Corporation to Acquire The Coast Distribution System

LKQ Corporation and The Coast Distribution System, Inc. announced on July 9 that they have signed a definitive agreement for LKQ to acquire Coast for $5.50 per share in cash.

Coast is a leading distributor of replacement parts, supplies and accessories for recreational vehicles (RVs) primarily to retail parts and supplies stores, service and repair establishments, and new and used RV dealers in North America.

The acquisition is currently expected to close in the third quarter of 2015. Coast's Board of Directors has unanimously recommended that Coast stockholders accept the offer and tender their shares. Total cash consideration payable for Coast’s outstanding shares is approximately $29 million. As of June 30, 2015 Coast had $19.5 million outstanding under its long-term revolving bank line of credit. 

“The combination of Coast with our Specialty segment and RV business presents tremendous distribution and logistics synergies with our existing network, and expands our RV business with the addition of unique product offerings and brands,” stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation.

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