Euro Car Parts, the UK car and van parts distributor, has agreed to merge with Netherlands-based Sator Holding following a £176 million deal.
The deal will be effective from May 1 and will create one of the largest aftermarket parts organisations in Europe.
Sukhpal Singh Ahluwalia, managing director of LKQ Europe, which includes Euro Car Parts, said: “Imagine 11 million disc brake pads stacked up, they would reach 175 miles above the ground or 32 times the height of Mount Everest.
“Or eight million oil and air filters – that’s one for each person living in London. Such is the volume of car parts sold annually by a new distribution group, announced today.
“This new group, with annualised sales of over €1 billion has such large purchasing power that it could supply a car part to each of England’s 56 million citizens, each year.
“We intend to use this power and world-sourcing capability to drive down the cost of car parts, to the benefit of Europe’s hard-pressed motorists and fleet operators.”
LKQ acquired UK-based Euro Car Parts in October 2011 from its founder and managing director, Sukhpal Singh Ahluwalia, for £225 million plus additional payment of £55 million, subject to performance in 2012 and 2013.
Sukhpal added: “LKQ Corporation’s formula is to back existing management teams and to help them realise their market potential.
“I am therefore delighted that Sator’s chief executive officer and co-founder, Adriaan Roggeveen, has agreed to join the LKQ Europe management team in his current position, on a permanent basis, and will report to me.
“This transaction will create one of Europe’s largest vehicle parts aftermarket distribution groups.
“Under my leadership, this new partnership between LKQ Corporation, Euro Car Parts and Sator will continue our fast expansion, in existing products and market sectors, but also in some new ones. Our goal is to use this transaction also a springboard for further acquisitions in Europe.”