LKQ Corporation has entered into an agreement to sell its self service segment, Pick Your Part, to an affiliate of Pacific Avenue Capital Partners, LLC for an enterprise value of $410 million, subject to customary post-closing purchase price adjustments.
The proposed price came after a competitive bid sale process that attracted interest from several parties.
“Today’s announcement marks another important step in our multi-year transformation to simplify our portfolio and become a more focused, high-performing company with leadership positions in our priority segments,” said Justin Jude, LKQ’s president and CEO. “While Pick Your Part has played a meaningful role in our history, we believe that it no longer aligns with our long-term strategy.
“As we have said, after having built the company through thoughtful acquisitions over many years, we have reached a point where it makes sense to assess opportunities to simplify and sharpen our focus,” Jude said. “We will continue to evaluate opportunities to advance our strategic objectives so that we can best serve customers and create value for our shareholders.”
Jude said LKQ trusts Pick Your Part will “continue to be best-in-class operators” under Pacific Avenue Capital Partners ownership, and thanked employees “for their efforts and years of service at LKQ, and wish them the best.”
The net proceeds from the sale will be used to strengthen LKQ’s balance sheet through debt repayment.
The transaction is expected to be completed during Q4 2025, subject to the satisfaction of customary closing conditions, including receipt of required regulatory approval.
In July, LKQ reported its Q2 2025 financial results, which showed organic revenue fell 3.4% year-over year, following a 4.3% drop in Q1 2025 and a low-single-digit decline for 2024. It cut its outlook, now expecting organic revenue decline of up to 3.5% in 2025, from a previous range of flat to 2% growth.
