LKQ to divest GSF Car Parts following Uni-Select acquisition

Euro Car Parts owner says GSF will continue to operate independently in the interim period

LKQ Corporation, the parent company of LKQ Euro Car Parts, is seeking to divest GSF Car Parts (GSF) following its acquisition of the factor’s Canadian owner, Uni-Select. With the transaction subject to the receipt of anti-trust clearance in the UK, LKQ Corporation made the offer as part of its application for the UK competition authority’s approval. In the interim, LKQ Corporation will not be involved in the day-to-day running of the GSF business with the existing management team remaining in place and the organisation ringfenced from LKQ. LKQ announced its plan to acquire Uni-Select for around US$2.1 billion on 27 February.

Nick Zarcone, president and chief executive officer of LKQ Corporation, said: “As detailed in the presentation shared on our website upon announcing the acquisition last week, we expect to divest GSF following receipt of relevant regulatory approvals. We hope this announcement helps to reassure the UK aftermarket that we remain committed to competition in the sector.”

‘No material change’ to GSF operations

Quebecois firm Uni-Select is leading distributor of automotive refinish and industrial coatings and related products in North America through FinishMaster, and of automotive aftermarket parts in Canada through Canadian Automotive Group. It acquired PA Topco Limited, which traded as The Parts Alliance, in a £205 million deal in 2017. This came two years after The Parts Alliance’s acquisition of GSF Car Parts, backed by investor HgCapital, merging the latter company’s 75 branches and 1,000 employees with its existing parts distribution network, comprised largely of local trading entities.

In November 2021, the distribution business unified under the GSF Car Parts brand across its then-170 UK sites, while The Parts Alliance reverted to its role as a trading group. GSF has continued to expand since the unification; it currently operates 180 branches and a growing online retail presence.

Uni-Select executive chair and CEO Brian McManus said: “We are extremely grateful for the efforts of the GSF team for the integral part they have played in the success of Uni-Select and its substantial growth since 2017.

“The passion, commitment and quality of our GSF colleagues has shone through time and again, and we will support the team during the divestment process to ensure they continue their excellent progress.”

GSF Car Parts president and COO Sukhbir Kapoor said: “We are a strong and healthy business, optimistic about the eventual outcome of the divestment process, given the strength of GSF and the talent of our 2,500 people across the UK.

“There is no material change to the day-to-day business of GSF Car Parts because of Uni-Select’s announcement, so our network of 180 branches and our growing online retail service remains open for business as usual.

“Everyone at GSF Car Parts remains committed to driving value and delivering the excellent service to our customers on which the business has built its strong reputation.”