LKQ Corporation’s CEO Dominic Zarcone has said that combining Uni-Select’s business with its own will result in annual cost savings running to millions of dollars.
[caption id="attachment_22825" align="alignright" width="300"] Dominic Zarcone (file photo)[/caption]
Speaking on an investor conference call confirming Monday’s announcement that LKQ is to acquire the entirety of the Canadian company, Mr Zarcone said: “There are $55m of cost savings that we are confident that will be fully attained within three years of closing”.
READ: Sukhbir comments on LKQ/Uni Select deal
He added that he was ‘fully confident’ that the acquisition would not affect LKQ’s investment-grade rating. Zarcone also confirmed that LKQ would be putting GSF Car Parts up for sale in order ‘to be responsive to the antitrust process in the UK’.
This is just want the money men on Wall Street like to hear. Especially when you have borrowed billions.
Savings in a business like this can only come from reductions in people or inventory.