Icahn Enterprises said the acquisition is $340 million  

Icahn Enterprisers, a master limited partnership and a diversified holding company controlled by Carl Icahn agreed to acquire substantially all of the assets of Uni-Select USA and Beck/Arnley Worldparts.

Uni-Select USA is a major distributor of automotive aftermarket parts and paint products in North America. The company has a reputation of being a partner of choice for independent entrepreneurs who are keen of tapping into the strength of a large network.

Uni-Select President and CEO Richard Roy said the “transaction unlocks value for our shareholders.” It also strengthens the company’s balance sheet, profitability and future growth potential. He added that the deal enables the company to repay its debt.

Terms of the agreement

Under the terms of the agreement, Icahn Enterprises would pay approximately $340 million for the assets of Uni-Select USA and Beck/Arnly Wordparts. The acquisition price is subject to adjustments based on the net tangible book value of the assets sold at the closing of the deal.

Icahn Enterprises acquired Uni-Select USA’s 39 distributions centers and satellite locations, 240 corporate stores including 2,960 employees.

The board of directors of Uni-Select approved the deal, which is still subject to regulatory approvals and customary closing conditions. The companies expect to close the deal in the first half of 2015.

Icahn’s comment regarding the deal

In a statement, Mr. Icahn strongly believed that Icahn Enterprises would be able to expand the acquired business segment and take advantage of consolidation opportunities.

Mr. Icahn also emphasized that Icahn Enterprises is constantly looking for companies to own and control.

According to him, the current value of the assets of the company it controls is more than $20 billion, up from approximately $1 billion at the beginning of 2000.

The figure does not include the value of securities held by the funds under the investment segment of Icahn Enterprises, which is more than $15 billion.

Icahn pointed out that it is becoming increasingly difficult for them to find undervalued companies with growth potential. He said, “That is why we were happy when we learned that the United States segment of Uni-Select was available,” for sale.

The acquired auto parts distribution business will be operated independently from Federal-Mogul Holdings Corporation, a subsidiary of Icahn Enterprises.

Mr. Icahn will resign from the board of Federal-Mogul. Daniel Ninivagi, co-CEO of Federal-Mogul will resign as director of Icahn Enterprises.

Carl Icahn Icahn Enterprises
Carl Icahn image via FBN