Bloomberg

LKQ Corp. (Nasdaq: LKQ) is acquiring European auto parts distributor Rhiag-Inter Auto Parts Italia SpA from Apax Partners for $1.14 billion, including debt.

Rhiag distributes aftermarket automotive parts throughout Europe. The company has more than 100,000 clients, 247 distribution centers and 10 warehouses. Apax acquired the target, which has about $968 million in annual revenue, in 2013.

“Clearly this acquisition will accelerate our strategy of creating a Pan-European aftermarket mechanical parts distribution business,” says LKQ Robert Wagman. The Chicago-based automotive parts company will fund the deal through a combination of cash and debt. The acquisition comes on the heels of LKQ’s pending purchase of Coast Distribution System Inc. (NYSE: CRV).

Rising global car sales have been driving deals among auto part companies. ITT Corp. (NYSE: ITT) is buying Wolverine Automotive Holdings Inc.; Sentinel Capital Partners has bought Driven Performance Brands; and Shipston Equity Holdings LLC has acquired PE-backed Compass Automotive Group LLC.

Bank of America Merrill Lynch is advising LKQ. JP Morgan (NYSE: JPM) and UBS are advising the sellers.

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