LKQ Corp. (Nasdaq: LKQ) is buying the Coast Distribution System Inc. (NYSE: CRV) for about $29 million.

Coast, headquartered in Morgan Hill, California, distributes replacement parts, supplies and accessories for recreational vehicles. As of June 30, the company had $19.5 million outstanding under its revolving line of credit.

The purchase price works out to $5.50 per share. Coast's shares closed at $3.62 on July 8, before the deal was announced.  

LKQ provides alternative and specialty parts for cars and other vehicles. The Chicago-based company has made several other acquisitions, including Sator Beheer BV, a Dutch car parts distributor, for $268 million in 2013.

We have seen several M&A transactions in the automotive parts market, as sales of new and used cars expands globally. Earlier in July, ECS Tuning LLC acquired Turner Motorsport LLC, which sells car parts and accessories. Also in July, the Watermill Group bought Quality Metalcraft Inc., which makes structural metal parts for the automotive and specialty vehicle industries.

Robert W. Baird & Co. and Duff & Phelps are advising Coast on the deal. 

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