IAA, Inc. announces the acquisition of SYNETIQ Ltd. | Illinois
WESTCHESTER, Ill .– (BUSINESS WIRE) – October 22, 2021–
IAA, Inc. (NYSE: IAA), a leading global digital marketplace connecting vehicle buyers and sellers, has announced the signing of an agreement to acquire the shares of SYNETIQ Ltd. (“SYNETIQ”), one of the UK’s leading integrated vehicle recovery and dismantling companies, for £ 225 million. IAA, Inc. will acquire the shares of SYNETIQ through its indirect wholly-owned subsidiary IAA International Holdings Limited.
Founded in 2019 from the merger of four entities, SYNETIQ provides salvage auction services to insurance companies, accident management companies and other public and private sellers. Additionally, the company is a leading vendor of reusable parts that are dismantled from salvage vehicles and reintroduced into the automotive supply chain. SYNETIQ has 14 sites and around 500 employees across the UK. The company has capabilities covering the entire recovery journey, from collection to auctioning or dismantling vehicles, and maximizes vehicle value through the recycling of parts and materials. For the 12 months ended September 30, 2021, the business generated sales of approximately £ 154 million. The transaction should be immediately accretive to earnings per share.
John Kett, CEO and President of IAA, said: “We are very pleased with the acquisition of SYNETIQ. This transaction significantly expands our UK business from a scale and portfolio perspective, supporting IAA’s overall growth strategy. SYNETIQ’s management team and employees have done a tremendous job using innovation to maximize value for their clients. We also know that reusable parts are of increasing interest to UK insurers looking to meet customer needs and meet their environmental goals. SYNETIQ’s focus and expertise in this area is a real differentiator which is consistent with our focus on sustainability in the UK market and beyond. We look forward to welcoming the SYNETIQ team to the IAA.
Tom Rumboll, CEO of SYNETIQ, said: “We are delighted and proud that the IAA has recognized the excellent work done by the SYNETIQ team to change the vehicle recycling industry and deliver optimized financial and environmental returns. to our customers. We now have a fantastic opportunity for continued growth supported by IAA’s global footprint, a robust market and innovation. From the proud and rich history of the companies that formed SYNETIQ to what our team has accomplished since, this is another defining moment and the beginning of the next phase of an exciting future for our company.
Under the terms of the deal, IAA will pay £ 186million upon closing, with the remaining £ 39million contingent upon receipt of merger review approval by the UK Competition and Markets Authority. (“CMA”). The final consideration payable is subject to working capital and other adjustments. The transaction will be funded by a combination of balance sheet liquidity and existing credit facilities. The closing is expected to take place by the end of October 2021. IAA and SYNETIQ will continue to operate independently in the market until approval for the transaction is obtained from the CMA.
XMS Capital Partners, LLC is the financial advisor to the IAA. O’Melveny & Myers LLP and Walker Morris LLP act as legal advisers to IAA, and Deloitte LLP as accounting and tax advisor. EY acts as the exclusive financial advisor to SYNETIQ, and KPMG Law and Euclid Law are their legal advisers.
About the IAA
IAA, Inc. (NYSE: IAA) is a leading global digital marketplace connecting vehicle buyers and sellers. By leveraging cutting-edge technology and focusing on innovation, IAA’s unique platform facilitates the marketing and sale of total loss, damaged and low-value vehicles. Headquartered near Chicago in Westchester, Illinois, IAA has nearly 4,000 employees and more than 200 facilities in the United States, Canada and the United Kingdom. IAA serves a global buyer base – located in more than 170 countries – and a full spectrum of sellers, including insurers, dealers, fleet and car rental companies, and charities. Buyers have access to multiple digital auction and purchasing channels, innovative vehicle merchandising, and efficient review services, enhancing the overall shopping experience. IAA offers sellers a full range of services aimed at maximizing vehicle value, reducing administrative costs, shortening sales cycle time and delivering the best economic returns. For more information on the IAA in the United States, visit IAAI.com and follow the IAA on Facebook, Twitter, Instagram, YouTube, and LinkedIn. For more information on IAA UK visit IAAIUK.co.uk and follow IAA UK on Facebook, Twitter, Instagram and LinkedIn.
Certain statements contained in this press release include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and which are subject to certain risks, trends and uncertainties. In particular, statements made in this press release that are not historical facts may be forward-looking statements. Words such as “should”, “could”, “will”, “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” and Similar phrases identify forward-looking statements. In this press release, these forward-looking statements include statements regarding the expected timing and benefits associated with the acquisition of SYNETIQ Ltd. These statements are based on management’s current expectations, do not constitute guarantees of future performance and are subject to risks and uncertainties which could cause actual results to differ materially from the results projected, expressed or implied by such statements. forward-looking statements. These risks and uncertainties include, but are not limited to: the risks that the anticipated benefits of the proposed acquisition will not be fully realized or may take longer to be realized than expected; failure to obtain regulatory approvals relating to the proposed acquisition; uncertainties regarding ongoing outbreaks of COVID-19 infections, including newer variants that are more contagious and / or resistant to the vaccine, and the impact on the duration and severity of the COVID-19 pandemic and the measures intended to reduce its spread, including the availability, rate of acceptance and effectiveness of COVID-19 vaccines; the loss of one or more major vehicle suppliers or a significant reduction in volume of such suppliers; our ability to meet or exceed customer demand and expectations; significant current competition and the introduction of new competitors or other disruptive entrants into our industry; the risk that our facilities may not have the capacity to accept additional vehicles and our ability to obtain land or renew / enter into new leases at commercially reasonable rates; our ability to effectively maintain or update information and technology systems; our ability to implement and maintain safeguards against cyber attacks and to comply with applicable data privacy and security requirements; our ability to successfully execute our business strategies or achieve expected cost savings and revenue improvements, including through our margin expansion plan; business development activities, including acquisitions and integration of acquired businesses; our expansion into markets outside the United States and the operational, competitive and regulatory risks facing our operations outside the United States; our reliance on sub-carriers and truck fleet operations; changes in used vehicle prices and the volume of damaged and lost vehicles that we purchase; economic conditions, including fuel prices, commodity prices, exchange rates and fluctuations in interest rates; new and used vehicle sales and incentive trends; and other risks and uncertainties identified in our filings with the Securities and Exchange Commission (the “SEC”), including under Section 1A “Risk Factors” in our annual report on Form 10-K filed with of the SEC on February 22, 2021, as these risk factors may be amended, supplemented or replaced from time to time by other reports that we file with the SEC, including subsequent quarterly reports on Form 10-Q and annual reports on form 10-K. Many of these risk factors are beyond our control and, as such, involve risks which are not currently known and which could cause actual results to differ materially from those discussed or implied herein. The forward-looking statements contained in this press release are made as of the date on which they are made and we do not undertake to update our forward-looking statements.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20211022005056/en/
CONTACT: IAA Contacts
Jeanène O’Brien | IAA, Inc.
Senior Vice President, Global Marketing and Communications
[email protected] Analysis requests:
Arif Ahmed | IAA, Inc.
Caitlin Churchill | RIC
KEYWORD: ILLINOIS NORTH AMERICA UNITED STATES IRELAND UNITED KINGDOM EUROPE
INDUSTRY KEYWORD: MARKETING TECHNOLOGY COMMUNICATIONS OTHER AUTOMOTIVE TIRES AND RUBBER RECREATIONAL VEHICLES SPECIAL PERFORMANCE AND INTEREST OFF-ROAD TRUCKS AND MOTORCYCLE SUVS FLEET MANAGEMENT RETAIL INSURANCE AFTERMARKET AUTOMOTIVE GASKET MARKETING SERVICES AUTOMOTIVE RETAILER GÉNKE MARKET AUTOMOTIVE GÉNKE SERVICE
SOURCE: IAA, Inc.
Copyright Business Wire 2021.
PUB: 10/22/2021 6:45 a.m. / DISC: 10/22/2021 6:46 a.m.