Uni-Select sells US auto parts business to Icahn Enterprises for US$340M
Sale includes 39 distribution centres and 240 corporate stores that employ nearly 3,000 people.
BOUCHERVILLE, Que. — Uni-Select is selling its US automotive parts distribution business to an affiliate of Icahn Enterprises for US$340 million.
The deal includes Beck/Arnley Worldparts, but excludes the Quebec-based company’s paint distribution business, FinishMaster, and its Canadian automotive parts operations.
The sale includes 39 distribution centres and 240 corporate stores that employ nearly 3,000 people.
Uni-Select said it will use the proceeds to repay debt while it focuses on its US paint and Canadian operations, where it is a market leader.
The deal, which has been approved by Uni-Select’s board of directors, is expected to close in the first half of the year, subject to regulatory approvals.
“After a thorough review of our operations, we have concluded that the sale … will allow us to focus on our current strengths and core businesses,” CEO Richard Roy said.
Uni-Select expects to incur an after-tax loss of US$80 million to US$100 million in the first quarter of 2015, reflecting transaction-related costs, restructuring charges and goodwill writedowns among other balance sheet costs.
Icahn Enterprises is a diversified holding company that controls companies with more than US$20 billion of assets in the investment, automotive, energy, gaming, rail car, food packaging, metals, real estate and home fashion sectors.
“With the advent of the bull market over the last five years, it has become increasingly difficult to find companies that we believe to be undervalued and with growth potential. That is why we were happy when we learned that the United States segment of Uni-Select was available,” said chairman Carl Icahn.
The acquired business will be operated independently from Federal-Mogul Holding, the automotive products subsidiary of Icahn Enterprises.
© 2015 The Canadian Press