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Bulletin: Despite The Increase In Its Leverage, LKQ Has A Sufficient Cushion In Its Metrics To Absorb Its Announced Acquisition

Published Feb 27, 2023

2 pages (1218 words) — Published Feb 27, 2023

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Abstract:

NEW YORK (S&P Global Ratings) Feb. 27, 2023--S&P Global Ratings today said that LKQ Corp.'s (BBB-/Stable/--) announced acquisition of Uni-Select, a paint and hard parts distributor, will temporarily reduce the cushion in the company's financial metrics at the current rating. While the acquisition will be somewhat dilutive to LKQ's overall margins, it will also increase its market share in the paint and hard products segments in North America. The company intends to fund the $2.1 billion purchase price primarily with debt and will cover the remainder with balance sheet cash. We estimate LKQ's S&P Global Ratings-adjusted pro forma leverage will initially increase to about 2.7x, from about 1.9x as of the end of December 2022, before improving toward 2.5x by

Report Type:

Bulletin

Ticker

LKQX

Issuer

LKQ Corp.

GICS

Distributors (25501010)

Sector

Global Issuers

Country

United States

Region

United States

Format:

PDF

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Cite this Report


MLA:	S&P Global Ratings’ Credit Research. "Bulletin: Despite The Increase In Its Leverage, LKQ Has A Sufficient Cushion In Its Metrics To Absorb Its Announced Acquisition" Feb 27, 2023. Alacra Store. May 06, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Despite-The-Increase-In-Its-Leverage-LKQ-Has-A-Sufficient-Cushion-In-Its-Metrics-To-Absorb-Its-Announced-Acquisition-2953718>

APA:	S&P Global Ratings’ Credit Research. (). Bulletin: Despite The Increase In Its Leverage, LKQ Has A Sufficient Cushion In Its Metrics To Absorb Its Announced Acquisition Feb 27, 2023. New York, NY: Alacra Store. Retrieved May 06, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Despite-The-Increase-In-Its-Leverage-LKQ-Has-A-Sufficient-Cushion-In-Its-Metrics-To-Absorb-Its-Announced-Acquisition-2953718>

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