IAA, Inc. Publicizes Acquisition of SYNETIQ Ltd. – Enterprise Wire

August 18, 2022 By admin

Expands presence in the UK, broadens portfolio and differentiates providing
WESTCHESTER, Ailing.–(BUSINESS WIRE)–IAA, Inc. (NYSE: IAA), a number one international digital market connecting car consumers and sellers, introduced it has signed an settlement to accumulate the inventory of SYNETIQ Ltd. (“SYNETIQ”), a number one built-in salvage and car dismantling firm in the UK, for £225 million. IAA, Inc. will purchase the inventory of SYNETIQ by way of its oblique wholly owned subsidiary IAA Worldwide Holdings Restricted.
Based in 2019 from the merger of 4 entities, SYNETIQ supplies salvage public sale providers for insurance coverage firms, accident administration firms, and different private and non-private sellers. As well as, the corporate is a number one vendor of reusable components which might be dismantled from salvage automobiles and reissued into the automotive provide chain. SYNETIQ has 14 areas and roughly 500 staff all through the UK. The enterprise has capabilities masking your entire salvage journey, from assortment to car public sale or dismantling, and optimizes car worth by way of components and materials recycling. For the 12 months ended September 30, 2021, the enterprise generated income of roughly £154 million. The transaction is anticipated to be instantly accretive to earnings per share.
John Kett, Chief Government Officer and President of IAA, stated, “We’re very excited concerning the acquisition of SYNETIQ. This transaction considerably expands our enterprise in the UK from each a scale and portfolio perspective, supporting the general IAA development technique. SYNETIQ’s administration workforce and staff have executed an incredible job of utilizing innovation to maximise worth for his or her prospects. We additionally know that reusable components are more and more of curiosity to UK insurers as they give the impression of being to fulfill buyer wants and meet their environmental objectives. SYNETIQ’s focus and experience on this space is a real differentiator that’s per our deal with sustainability within the UK market and past. We sit up for welcoming the SYNETIQ workforce to IAA.”
Tom Rumboll, Chief Government Officer of SYNETIQ, stated, “We’re delighted and proud that IAA has acknowledged the good work the SYNETIQ workforce is delivering to alter the car recycling trade, and ship optimized monetary and environmental returns for our shoppers. Now we’re introduced a unbelievable alternative for continued development supported by IAA’s international footprint, strong market and innovation. From the proud and wealthy historical past of the companies that shaped SYNETIQ to what our workforce has achieved since, that is one other milestone second and the beginning of the following section of an thrilling future for our enterprise.”
Below the phrases of the settlement, IAA pays £186 million at closing, with the remaining £39 million contingent upon receipt of the merger management approval from the UK Competitors and Markets Authority (“CMA”). The ultimate consideration to be paid is topic to working capital and different changes. The transaction can be financed by way of a mixture of present stability sheet money and present credit score amenities. Closing is anticipated to happen by the top of October 2021. IAA and SYNETIQ will proceed to function independently available in the market till clearance of the transaction is obtained from the CMA.
XMS Capital Companions, LLC is serving as monetary advisor to IAA. O’Melveny & Myers LLP and Walker Morris LLP are serving as IAA’s authorized advisors, and Deloitte LLP is serving as accounting and tax advisor. EY is serving as unique monetary advisor to SYNETIQ, and KPMG Legislation and Euclid Legislation are serving as their authorized advisors.
About IAA
IAA, Inc. (NYSE: IAA) is a number one international digital market connecting car consumers and sellers. Leveraging modern know-how and specializing in innovation, IAA’s distinctive platform facilitates the advertising and sale of total-loss, broken and low-value automobiles. Headquartered close to Chicago in Westchester, Illinois, IAA has practically 4,000 staff and greater than 200 amenities all through the U.S., Canada and the UK. IAA serves a worldwide purchaser base – situated all through over 170 nations – and a full spectrum of sellers, together with insurers, dealerships, fleet lease and rental automobile firms, and charitable organizations. Patrons have entry to a number of digital bidding and shopping for channels, progressive car merchandising, and environment friendly analysis providers, enhancing the general buying expertise. IAA presents sellers a complete suite of providers aimed toward maximizing car worth, lowering administrative prices, shortening promoting cycle time and delivering the best financial returns. For extra info on IAA within the U.S. go to IAAI.com, and comply with IAA on Fb, Twitter, Instagram, YouTube and LinkedIn. For extra details about IAA within the UK go to IAAIUK.co.uk, and comply with IAA within the UK on Fb, Twitter, Instagram, and LinkedIn.
Ahead-Wanting Statements:
Sure statements contained on this launch embody “forward-looking statements” throughout the that means of the Personal Securities Litigation Reform Act of 1995 and that are topic to sure dangers, traits and uncertainties. Specifically, statements made on this launch that aren’t historic details could also be forward-looking statements. Phrases similar to “ought to,” “could,” “will,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates” and related expressions determine forward- trying statements. On this launch, such forward-looking statements embody statements relating to the anticipated timing and related advantages with respect to the acquisition of SYNETIQ Ltd. Such statements are primarily based on administration’s present expectations, aren’t ensures of future efficiency and are topic to dangers and uncertainties that might trigger precise outcomes to vary materially from the outcomes projected, expressed or implied by these forward-looking statements. These dangers and uncertainties embody, however aren’t restricted to: dangers that the anticipated advantages of the proposed acquisition will not be totally realized or take longer to comprehend than anticipated; failure to acquire regulatory approvals associated to the proposed acquisition; uncertainties relating to ongoing surges of COVID-19 infections, together with new extra contagious and/or vaccine resistant variants, and the affect on the length and severity of the COVID-19 pandemic and measures supposed to cut back its unfold, together with the provision, fee of public acceptance and efficacy of COVID-19 vaccines; the lack of a number of important car suppliers or a discount in important quantity from such suppliers; our skill to fulfill or exceed prospects’ demand and expectations; important present competitors and the introduction of recent rivals or different disruptive entrants in our trade; the chance that our amenities lack the capability to simply accept extra automobiles and our skill to acquire land or renew/enter into new leases at commercially affordable charges; our skill to successfully keep or replace info and know-how programs; our skill to implement and keep measures to guard towards cyberattacks and adjust to relevant privateness and knowledge safety necessities; our skill to efficiently implement our enterprise methods or notice anticipated value financial savings and income enhancements, together with from our margin growth plan; enterprise growth actions, together with acquisitions and integration of acquired companies; our growth into markets exterior the U.S. and the operational, aggressive and regulatory dangers going through our non-U.S. primarily based operations; our reliance on subhaulers and trucking fleet operations; adjustments in used-vehicle costs and the amount of broken and complete loss automobiles we buy; financial situations, together with gasoline costs, commodity costs, overseas change charges and rate of interest fluctuations; traits in new- and used-vehicle gross sales and incentives; and different dangers and uncertainties recognized in our filings with the Securities and Change Fee (the “SEC”), together with underneath Merchandise 1A “Danger Elements” in our Annual Report on Kind 10-Ok filed with the SEC on February 22, 2021, as such threat components could also be amended, supplemented or outdated infrequently by different studies we file with the SEC, together with subsequent Quarterly Reviews on Kind 10-Q and Annual Reviews on Kind 10-Ok. Many of those threat components are exterior of our management, and as such, they contain dangers which aren’t presently identified that might trigger precise outcomes to vary materially from these mentioned or implied herein. The forward-looking statements on this launch are made as of the date on which they’re made and we don’t undertake to replace our forward-looking statements.

IAA Contacts
Media Inquiries:
Jeanene O’Brien | IAA, Inc.
SVP, International Advertising and marketing and Communications
(708) 492-7328
[email protected]
Analyst Inquiries:
Arif Ahmed | IAA, Inc.
VP, Treasury
(708) 492-7257
[email protected]

Caitlin Churchill | ICR
(203) 682-8200
[email protected]
IAA Contacts
Media Inquiries:
Jeanene O’Brien | IAA, Inc.
SVP, International Advertising and marketing and Communications
(708) 492-7328
[email protected]
Analyst Inquiries:
Arif Ahmed | IAA, Inc.
VP, Treasury
(708) 492-7257
[email protected]

Caitlin Churchill | ICR
(203) 682-8200
[email protected]

supply