LKQ Corp To Buy Pittsburgh Glass Works For Enterprise Value Of $635 Mln

(RTTNews) - LKQ Corp. (LKQ) said it has agreed to acquire Pittsburgh Glass Works LLC or PGW from private equity firm Kohlberg & Company LLC and PPG Industries, Inc. (PPG) for an enterprise value of $635 million.

PGW is global distributor and manufacturer of automotive glass products. PGW's business comprises wholesale and retail distribution services, automotive glass manufacturing, and retailer alliance partnerships.

Robert Wagman, President and Chief Executive Officer of LKQ Corp. said, "PGW reflects LKQ's commitment to provide a one-stop-shop solution to the North American collision repair industry by adding automotive glass to our product offerings. PGW is the largest pure-play provider in the $3.5 billion North American automotive glass market."

PGW operates approximately 120 distribution branches serving over 7,000 automotive glass retailer shops across North America. In addition, it operates 12 automotive glass fabrication facilities in North America, Europe and China.

The transaction is expected to be completed in the second quarter of 2016.

LKQ Corp. intends to finance the acquisition with borrowings under its revolving credit facility. As of February 25, 2016, the company had approximately $2.2 billion of available borrowing capacity on its credit facility.

PGW's revenue for the twelve months ended October 31, 2015 was about $1.07 billion, and LKQ expects the transaction to be accretive to its earnings in 2016. These projected results exclude restructuring and acquisition related expenses.