The corporate credit rating on Chicago-based LKQ Corp. reflects the company's weak business profile as well as its aggressive financial profile stemming from an increased debt load from the 2007 acquisition of unrated Keystone Automotive Industries Inc. for $807 million. LKQ is the nation's largest provider of recycled automotive original equipment manufacturer (OEM) products and related services, with sales and distribution facilities that reach most major markets in the U.S. The acquisition of Keystone made LKQ the largest nationwide provider of aftermarket collision replacement products, and refurbished bumper covers and wheels. The acquisition nearly doubled LKQ's revenues, and because both entities are distribution companies with overlapping footprints, the combination offers the potential for a number of operating and financial benefits.
