LKQ Corporation (NASDAQ:LKQ) said on Friday that it had entered into a definitive agreement to sell Elit Polska to MEKO AB.
Elit Polska is a Poland-based distributor of automotive parts, consumables and workshop equipment. Elit Polska's 2023 revenue was approximately $107 million.
As of March-end, the balance sheet of LKQ reflected a total debt of $4.3 billion and a total leverage of 2.3x EBITDA.
Justin Jude, Executive Vice President and Chief Operating Officer of LKQ, stated, "The evaluation and streamlining of our asset base is a core strategic pillar for our Company."
The transaction is expected to be completed during the second half of 2024 and is subject to customary closing conditions and necessary regulatory approvals.
For 2024, LKQ projected a free cash flow of $1 billion, with an operating cash flow of $1.35 billion.
MEKO operates as a top spare parts distributor in northern Europe, serving eight markets through its brands FTZ, Inter-Team, Koivunen, MECA, Mekonomen, and Sørensen og Balchen. As of December 31, 2023, LKQ owned 26.6% of MEKO AB.
Price Action: LKQ shares are trading higher by 0.07% to $44.35 at last check Friday.
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