Keystone Automotive Industries rises on buyout
Shares of Keystone Automotive Industries, Inc. (Nasdaq: KEYS) have shifted into higher gear following news that the Pomona, Calif.-based distributor of collision replacement parts is being purchased by LKQ Corp. (Nasdaq: LKQX) for $811 million in cash.
Chicago-based LKQ, which provides recycled light vehicle products, announced before the opening bell that it will pay $48 per share for Keystone Automotive. That’s 10% above the company’s Monday closing price of $43.61. Keystone’s board has unanimously approved the deal, which is scheduled to close in the fourth quarter of 2007.
“In addition to providing tremendous value to our shareholders, this transaction delivers a true combination of complementary strengths,” CEO and President Rick Keister said. “Keystone’s aftermarket product offerings are a perfect fit with LKQ’s leading presence in the recycled parts business. We envision [a] combined distribution network.”
Keystone uses more than 130 distribution facilities in the United States and Canada to sell its products to more than 25,000 collision repair shops.
At 2:02 p.m. ET shares were up $3.21, or 7%, to $46.82. The 52-week high of $44.15 was achieved on July 16. The 52-week low of $29.80 was set on Dec. 11, 2006.
