LKQ Corporation Initiates Sale Process for Specialty Segment

Core Insights - LKQ Corporation has initiated a process to explore the potential sale of its Specialty segment, which is a leading distributor of automotive, RV, and marine parts in North America [1][2] - The strategic review aims to evaluate opportunities for the Specialty segment under new ownership, driven by favorable market conditions for divestiture [1][2] - The company emphasizes its ongoing strategy to simplify its portfolio and focus on core segments, as evidenced by the recent successful sale of its Self-Service segment [2] Financial Strategy - Proceeds from a potential sale will be allocated according to the company's capital allocation framework, which includes maintaining a strong balance sheet and returning value to shareholders through share repurchases [2] - The company has engaged Bank of America as a financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel to assist with the sale process [3] Company Overview - LKQ Corporation is a leading provider of alternative and specialty parts for repairing and accessorizing vehicles, with operations in North America, Europe, and Taiwan [4]