Uni-Select’s shareholders OK deal

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Uni-Select recently announced that its shareholders gave the thumbs up to the sale of the company to LKQ Corporation.

A special meeting of shareholders saw the resolution approved by nearly 99 per cent of votes cast by shareholders present virtually or represented by proxy and entitled to vote at the meeting.

The deal was announced at the end of February and will see Chicago-based LKQ will buy all of Boucherville, Quebec-based Uni-Select’s issued and outstanding shares for $48 per share in cash, valuing the transaction at about CAN$2.8 billion.

The agreement also includes Uni-Select’s U.K. auto parts distribution business GSF Car Parts with more than 175 company-operated stores. LKQ has noted it will look to part with the business following its acquisition.

The arrangement is expected to close in the second half of this year. It remains subject to certain closing conditions, including the issuance of a final order by the Superior Court of Québec and receipt of applicable regulatory approvals, consisting of approval under the Canadian Competition Act and the Investment Canada Act, approval under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and clearance by the U.K. Competition and Markets Authority.

First quarter results

Uni-Select reported nearly 10 per cent growth in its consolidated sales in the first quarter of 2023 when compared to the same time last year. If it weren’t for unfavourable fluctuation from the Canadian dollar and British pound, the company said it would have seen growth of 15 per cent.

Within the Canadian Automotive Group, sales were up 19 per cent when excluding unfavourable fluctuations of the Canadian dollar compared to the first quarter of 2022. Growth, Uni-Select noted, was driven by acquisitions over the last year, representing 9.5 per cent with organic growth of 8.4 per cent, plus a favourable variance in the number of billing days.

Organic growth was driven by price increases, it noted.