LKQ Corporation has begun a strategic review to evaluate the sale of its Specialty segment, a North American distributor of automotive, RV, and marine parts and accessories that was created in 2014 through the acquisition of Keystone Specialty.
The Specialty unit has been a key contributor to LKQ’s overall business, but the company has not disclosed specific revenue or profitability figures for the segment. Management said the review is part of a broader effort to simplify the portfolio after the recent sale of the Self‑Service segment and to focus on core wholesale operations in North America and Europe.
Bank of America has been retained as the financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel for the process. LKQ has not set a definitive timetable for completion and will pursue a transaction only if it reflects the market value of the business.
President and Chief Executive Officer Justin Jude said the review aligns with the company’s strategy to streamline its operations and concentrate on high‑margin core segments. He added that any proceeds would be used in line with LKQ’s capital allocation framework, which prioritizes maintaining a strong balance sheet and returning value to shareholders through share repurchases.
The announcement signals a continued focus on portfolio optimization and capital efficiency, and it may influence investor expectations about future capital allocation and the company’s long‑term growth strategy.
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