As NTP-Stag parent company LKQ Corp. continues its latest acquisition move, company officials stressed that the companies will carry on business as usual until the acquisition closes.
LKQ Corp. entered into an agreement to acquire Coast Distribution yesterday.
“Coast is considered a respected and friendly competitor of ours until the deal is closed, and it’s business as usual so we’re moving forward with our plans as if nothing has changed,” NTP-Stag Marketing Director John Spaulding said a day after LKQ Corp. announced plans to acquire Coast Distribution.
Coast owns 17 North American distribution facilities, and Spaulding said that plans for the acquisition would develop over the next few months, following the closing of the deal.
“This was just released yesterday, so our plans will be coming together between now and the third quarter, and after the deal is inked,” he said.
It is unclear what relationship Coast will have in the LKQ Corp. group of companies that includes NTP-Stag and it’s immediate parent company Keystone Automotive. In an email to dealers Thursday morning, NTP-Stag sales official Fred Petrivelli referred to the LKQ agreement as a merger and suggested that the deal could be similar to last year’s Stag-Parkway acquisition.
“… We believe this merger advances our ability to be the RV industry’s leading parts distributor,” Petrivelli said in the letter. “We will continue the ‘best of both worlds’ approach we started during the NTP-Stag integration as we plan the Coast Distribution combination.”
LKQ Corp. will attempt to buy a majority of Coast shares for $5.50 per share. The tender offer is required to begin within 10 business days and remain in place up to 20 days following.
“If all the necessary steps are completed in the outline that has been set for us, we should be closing the deal in the third quarter,” Spaulding said.