LKQ To Acquire Coast Distribution System In $29 Mln Deal

(RTTNews) - LKQ Corp. (LKQ) Thursday said it reached an agreement to acquire Coast Distribution Systems, a distributor of replacement parts, supplies and accessories for recreational vehicles, for $5.50 per share in cash or approximately $29 million. The combination would result in distribution and logistics synergies

As per the agreement, a subsidiary of LKQ will commence a tender offer to acquire all outstanding shares of Coast's common stock. The tender offer will begin in 10 business days and will remain open for at least 20 business days after launch.

Coast's Board of Directors unanimously recommended the offer. The acquisition is currently expected to close in the third quarter of 2015.

As of June 30, 2015 Coast had $19.5 million outstanding under its long-term revolving bank line of credit.

Robert W. Baird & Co. Incorporated and Duff & Phelps, LLC are acting as financial advisors to The Coast Distribution System.