LKQ Corp. has completed the sale of itself service business — the “Pick Your Part” salvage yard network — to an affiliate of Pacific Avenue Capital Partners for an enterprise value of $410 million. The deal marks a pivotal step in LKQ’s strategy to concentrate on its core mission as a global distributor of automotive replacement parts and repair solutions.
LKQ operates one of the largest distribution networks in the automotive aftermarket, supplying collision repair shops, mechanical repair facilities, and fleet operators with a broad range of recycled, remanufactured, and aftermarket components. From bumpers and engines to electronic systems and specialty accessories, the company’s logistics operations move millions of parts each year through a network of regional distribution centers across North America, Europe, and Taiwan.
With the sale of Pick Your Part, LKQ is exiting a more retail-focused line of business that catered to do-it-yourself customers looking to remove used parts directly from salvage vehicles. The move allows the company to sharpen its focus on wholesale distribution — a capital-intensive, logistics-driven business that relies on sophisticated inventory management, digital ordering systems, and deep supplier relationships.
“We are executing on our strategic priorities by simplifying our portfolio of businesses and continuing our efforts to reduce costs across our business while growing,” said LKQ president and CEO Justin Jude. “The proceeds from this transaction will be used to strengthen LKQ’s balance sheet through debt repayment, as we focus on executing our disciplined capital allocation strategy.”
For LKQ, the divestiture aligns with a broader industry trend among distributors seeking to streamline operations and improve margins amid volatile demand and inflationary cost pressures. By offloading the self-service segment, the company removes a labor- and real estate-intensive business that offered limited scalability compared with its professional parts distribution model.
The self-service segment will now be reported as discontinued operations in LKQ’s financial results beginning with the third quarter of 2025, which the company plans to release on October 30. Jefferies LLC served as LKQ’s financial advisor on the deal, and Wachtell, Lipton, Rosen & Katz functioned as legal counsel.
Analysts view the move as a return to LKQ’s roots — a logistics provider focused on connecting suppliers, insurers, and repair professionals through efficient parts distribution and reliable service. The company has been investing in data-driven pricing systems, ecommerce ordering platforms, and regional fulfillment hubs to improve delivery speed and expand margins.
Pick Your Part, while well known among consumers, represents a different operating model. Managing hundreds of salvage yards required distinct systems for environmental compliance, land management, and retail staffing — areas that diverged from LKQ’s strategic emphasis on scale, technology, and professional service.
By selling the unit to Pacific Avenue Capital Partners, LKQ gains flexibility to reduce debt, reinvest in higher-growth product lines, and strengthen its position as one of the leading distributors in the global automotive aftermarket. The sale underscores the company’s shift toward a leaner, more technology-enabled distribution network built for speed, accuracy, and customer service.
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