LKQ is considering selling Keystone Automotive Industries, its specialty parts business, according to sources that spoke to Reuters.
Keystone Automotive is a distributor of alternative replacement parts for autos and trucks, including bumpers, hoods, fenders, grilles, lighting, remanufactured wheels, radiators and condensers.
After selling its self-service segment to Pacific Avenue Capital Partners for $410 million earlier this year, which it used to pay down debt, LKQ was still under pressure from shareholders to sell other assets, sources told Reuters.
LKQ reportedly met with investment bankers from Bank of America to look for a buyer for Keystone.
In Q3 2025, LKQ reported organic parts revenue fell about 1% year-over-year, an improvement on Q2 and Q1 declines of 3.4% and 4.3% and low single-digit declines through 2024. It expects full-year 2025 organic parts revenue to decline 2% to 3%.
On a call discussing the Q3 results, Senior Vice President and CFO Rick Galloway said EBITDA margin of 14% was down from 15.8%, partly due to gross margins affected by “the dilutive effect of increasing prices to offset dollar-for-dollar higher input costs from tariffs, and unfavorable customer mix effect as we continue to grow share with the MSOs.”
