LKQ merges Bulgarian subsidiary
LKQ Corporation announced it has merged its subsidiary Auto Kelly Bulgaria EOOD with Elit Kar OOD, creating one of Bulgaria’s leading distributors of automotive spare parts.
LKQ now owns a 20% equity interest in the combined business, which will continue to operate under both the Elit Car Group and Auto Kelly brand names. In addition, the combined business will acquire parts from LKQ’s aftermarket supply chain.
Dominick Zarcone, president and chief executive officer of LKQ, said: “The rationalization of our European asset base and divestiture of non-core businesses is one of the many initiatives that will help improve the EBITDA margins of LKQ Europe. We believe the Auto Kelly Bulgaria business will perform strongly under the leadership of Elit Kar, and we look forward to a successful partnership, as both an equity holder and supplier.”
On April 25, 2019 the company announced that it had identified several businesses that it intended to sell over the course of the next year. These assets are held on the balance sheet as net assets held for sale, and with the disposal of these small, non-core businesses, the company is attempting to simplify its operating model and improve margins.
Terms of the transaction were not disclosed.