LKQ Corp. adds to board

LKQ Corp. has appointed two new independent directors, Sue Gove and Michael Powell, to its board, effective immediately, and the formation of a Finance Committee of the board. The company also has entered into a cooperation agreement with Cleveland-based Ancora Catalyst Institutional LP, New York City-based Engine Capital LP and certain of their affiliates, which collectively own 2.2 percent of LKQ shares, according to Stifel, a diversified global wealth management and investment banking company.

LKQ, headquartered in Antioch, Tennessee, is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company has operations in North America, Europe and Taiwan and offers its customers a range of original equipment recycled and aftermarket parts, replacement systems, components, equipment and services to repair and accessorize automobiles, trucks, and recreational and performance vehicles.

Gove is founder and president of Excelsior Advisors LLC, a retail consulting and advisory firm, and is a tenured senior executive with extensive public company board expertise, including within the automotive industry at IAA Inc. and AutoZone Inc.

Powell brings leadership experience from his career at Progressive Corp., one of the largest auto insurers in North America, where he most recently served as claims process general manager.

“I am pleased to welcome Sue and Michael to our board, who bring executive experience as well as an understanding of the automotive industry that complements our board,” says Guhan Subramanian, chairman of LKQ. “LKQ is well-positioned to build on the progress we have made through our focus on operational excellence and taking action to simplify, integrate and rationalize our business to drive better returns. We value the constructive engagement that we have had with Ancora and Engine toward our shared goal of generating increasing value for LKQ’s shareholders.”

LKQ’s newly formed Finance Committee will make recommendations to the board on its capital allocation strategy and business portfolio. The committee will be chaired by LKQ director Andrew Clarke, with its remaining members being directors John Mendel, Xavier Urbain, Gove and Powell.

Ancora Chairman and CEO Fredrick D. DiSanto and Ancora Alternatives LLC President James Chadwick say, “We appreciate the collaboration with LKQ and are confident that Sue and Michael’s corporate governance and industry experience will support the company’s go-forward strategy and drive value for shareholders.”

Arnaud Ajdler, founder and portfolio manager of Engine Capital, adds, “LKQ has significant value potential, and with the addition of these new directors, we are confident in the company’s ability to execute as the leading provider of alternative and specialty parts for vehicles.”

In early December of last year, LKQ appointed James S. Metcalf to its board, effective Dec. 11, as part of the board’s ongoing refreshment process, and announced that Dominick Zarcone decided not to stand for reelection and would retire from the board when his term expires in connection with the company’s 2025 annual meeting.

The company will release its fourth-quarter and full-year 2024 financial results Feb. 20.