LKQ Acquires Greenleaf Auto Recyclers from Schnitzer

LKQ also sold certain business assets to SSI related to two self-service facilities in Northern California and a self-service facility in Portland, OR. LKQ will close the two self-service facilities in Northern California and convert the self-service operation in Portland to a wholesale recycling business.

Greenleaf’s wholesale recycling business acquired consists of 17 operating locations. These facilities are located in Michigan, Ohio, Massachusetts, Virginia, North Carolina, Georgia, Florida, Texas, and Nevada. LKQ plans to merge certain locations together with its existing wholesale recycling operations, which will result in the elimination of approximately 11 operating locations.

The facilities Schnitzer is taking over in the Northwest are located near the company’s scrap metal export facilities in Portland, and will represent the company’s first used auto parts operations in the Pacific Northwest. The company will close on these locations Oct. 2, 2009.

"This transaction is consistent with our strategy of expanding our Auto Parts Business in regions where we can take advantage of vertical integration with our Metals Recycling Business," said Tamara Lundgren, president and CEO. "In addition, it is representative of our focus on building franchise positions in the regions in which we operate."

"These acquisitions will allow us to successfully build upon the Pick-n-Pull brand of self-service stores and reach many new customers in both the Pacific Northwest and Texas. We’d also like to thank the employees at Greenleaf for their years of service, hard work and efforts."

The other two locations that Schnitzer is acquiring are located in the Dallas area. They will bring to four the number of self service operations Schnitzer operates in the area. The deal for these facilities will be effective Jan. 15, 2010.

All the acquired operations will operate under the company’s Pick-n-Pull name.

At the completion of the transactions, Schnitzer’s Auto Parts Group will operate 45 self-service stores in 14 states and Western Canada.

Along with the transaction, Schnitzer is receiving an undisclosed amount of cash.

"These transactions provide us with additional wholesale recycling capacity and enhanced customer penetration in numerous markets in our late model recycled auto parts business line, and provide our initial entry to the northern Virginia market," said Joe Holsten, LKQ's president and CEO.

Holsten added, "While the self-service operations we are disposing of are good businesses, they fit better with SSI's operations and business model."