LKQ Corporation Agrees to Acquire Keystone Automotive Operations, Inc.

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| Source: LKQ Corporation

CHICAGO, Dec. 5, 2013 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq:LKQ) announced that it has signed a definitive agreement to acquire Keystone Automotive Operations, Inc. ("Keystone"), a leading distributor and marketer of specialty aftermarket equipment and accessories in North America, for $450 million. The transaction is expected to be completed in the first quarter of 2014 and is subject to customary closing conditions and necessary regulatory approvals.

Established in 1971, Keystone has over 1,500 employees with 25 locations serving more than 20,000 specialty retailers and equipment installers throughout North America, offering a broad product line of over 300,000 SKUs from over 800 suppliers. Keystone markets products to serve the following six category segments: truck and off-road; speed and performance; recreational vehicle; towing; wheels, tires and performance handling; and miscellaneous accessories.

"LKQ will become a leading player in the specialty aftermarket equipment and accessories business with this acquisition," stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation. "In addition, our addressable market opportunity in North America will be significantly expanded. The entire specialty aftermarket equipment and accessories industry is a highly fragmented $31 billion market, and Keystone's current product categories represent about $5 billion of the industry."

LKQ expects the transaction to be accretive to its earnings in 2014. Keystone's revenue for 2014 is expected to be approximately $700 million with an EBITDA margin of approximately ten percent. These projected results exclude restructuring and acquisition related expenses.

The Company intends to finance the acquisition with borrowings on its revolving credit facility and asset securitization program. As of September 30, 2013, the Company had approximately $1.2 billion available from these sources.

Conference Call

LKQ will host a conference call on December 6, 2013 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) with members of senior management to discuss the pending acquisition of Keystone Automotive Operations, Inc.

To access the investor conference call, please dial (877) 407-0668. International access to the call may be obtained by dialing (201) 689-8558. The audio webcast can be accessed via the Company's website at www.lkqcorp.com in the Investor Relations section.

A replay of the conference call will be available by telephone at (877) 660-6853 or (201) 612-7415 for international calls. The telephone replay will require you to enter conference ID: 424881#. An online replay of the audio webcast will be available on the Company's website. Both formats of replay will be available through December 27, 2013. Please allow approximately two hours after the live presentation before attempting to access the replay.

About LKQ Corporation

LKQ Corporation (www.lkqcorp.com) is the largest nationwide provider of alternative collision replacement parts and a leading provider of recycled engines and transmissions and remanufactured engines, all in connection with the repair of automobiles and other vehicles. LKQ also has operations in the United Kingdom, Canada, Mexico, Taiwan, the Netherlands, Belgium, France, Guatemala and Costa Rica. LKQ operates more than 500 facilities, offering its customers a broad range of replacement systems, components and parts to repair automobiles and light, medium and heavy-duty trucks.

About Keystone Automotive Operations, Inc.

Keystone Automotive Operations, Inc. (www.keystoneautomotive.com) is a leading distributor and marketer of specialty aftermarket automotive equipment and accessories in North America. Keystone has 25 locations serving more than 20,000 specialty retailers and equipment installers throughout North America, offering a broad product line of over 300,000 SKUs from over 800 suppliers. Keystone operates five distribution centers and 20 non-inventory stocking cross-docks in the United States and Canada.

Forward Looking Statements

Certain statements in this press release that are not historical facts are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements generally include expectations, beliefs, hopes, intentions or strategies regarding our future, including with respect to the proposed transaction described and statements or assumptions regarding the expected timetable for completing the transaction, financial and operating results, benefits and synergies of the transaction, and other statements that are based on management's current beliefs and expectations of the company and the combined businesses.  Forward looking statements are subject to risks, uncertainties and other factors some of which are not currently known to us. Actual events or results may differ materially from those expressed or implied in the forward looking statements as a result of various factors. Some of such risks, uncertainties and other factors are described in our Form 10-K for the period ended December 31, 2012 and in subsequently filed Form 10-Qs. We assume no obligation to publicly update any forward looking statement to reflect events or circumstances arising after the date on which it was made, except as required by law.

Joseph P. Boutross
LKQ Corporation
Director, Investor Relations
(312) 621-2793