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

August 17, 2022 By admin

Expands presence in the UK, broadens portfolio and differentiates providing
WESTCHESTER, Ailing.–(BUSINESS WIRE)–IAA, Inc. (NYSE: IAA), a number one world digital market connecting automobile patrons and sellers, introduced it has signed an settlement to accumulate the inventory of SYNETIQ Ltd. (“SYNETIQ”), a number one built-in salvage and automobile dismantling firm in the UK, for £225 million. IAA, Inc. will purchase the inventory of SYNETIQ by its oblique wholly owned subsidiary IAA Worldwide Holdings Restricted.
Based in 2019 from the merger of 4 entities, SYNETIQ gives salvage public sale companies for insurance coverage corporations, accident administration corporations, and different private and non-private sellers. As well as, the corporate is a number one vendor of reusable components which are dismantled from salvage autos and reissued into the automotive provide chain. SYNETIQ has 14 places and roughly 500 workers all through the UK. The enterprise has capabilities masking the complete salvage journey, from assortment to automobile public sale or dismantling, and optimizes automobile worth by 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 Govt Officer and President of IAA, mentioned, “We’re very excited in regards to the acquisition of SYNETIQ. This transaction considerably expands our enterprise in the UK from each a scale and portfolio perspective, supporting the general IAA progress technique. SYNETIQ’s administration crew and workers have executed an amazing job of utilizing innovation to maximise worth for his or her clients. 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 targets. SYNETIQ’s focus and experience on this space is a real differentiator that’s according to our deal with sustainability within the UK market and past. We sit up for welcoming the SYNETIQ crew to IAA.”
Tom Rumboll, Chief Govt Officer of SYNETIQ, mentioned, “We’re delighted and proud that IAA has acknowledged the good work the SYNETIQ crew is delivering to vary the automobile recycling business, and ship optimized monetary and environmental returns for our shoppers. Now we’re introduced a implausible alternative for continued progress supported by IAA’s world footprint, sturdy market and innovation. From the proud and wealthy historical past of the companies that shaped SYNETIQ to what our crew has achieved since, that is one other milestone second and the beginning of the following section of an thrilling future for our enterprise.”
Beneath 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 a mix of current steadiness sheet money and current credit score amenities. Closing is anticipated to happen by the tip of October 2021. IAA and SYNETIQ will proceed to function independently out there 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 world digital market connecting automobile patrons 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 autos. Headquartered close to Chicago in Westchester, Illinois, IAA has practically 4,000 workers 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 international locations – and a full spectrum of sellers, together with insurers, dealerships, fleet lease and rental automotive corporations, and charitable organizations. Patrons have entry to a number of digital bidding and shopping for channels, progressive automobile merchandising, and environment friendly analysis companies, enhancing the general buying expertise. IAA provides sellers a complete suite of companies aimed toward maximizing automobile worth, decreasing 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-Trying Statements:
Sure statements contained on this launch embody “forward-looking statements” inside the which means of the Non-public Securities Litigation Reform Act of 1995 and that are topic to sure dangers, developments and uncertainties. Specifically, statements made on this launch that aren’t historic info could also be forward-looking statements. Phrases equivalent to “ought to,” “might,” “will,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates” and related expressions determine forward- wanting 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, should not ensures of future efficiency and are topic to dangers and uncertainties that would trigger precise outcomes to vary materially from the outcomes projected, expressed or implied by these forward-looking statements. These dangers and uncertainties embody, however should not restricted to: dangers that the anticipated advantages of the proposed acquisition will not be absolutely realized or take longer to understand 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 influence on the length and severity of the COVID-19 pandemic and measures meant to scale back its unfold, together with the supply, charge of public acceptance and efficacy of COVID-19 vaccines; the lack of a number of vital automobile suppliers or a discount in vital quantity from such suppliers; our means to fulfill or exceed clients’ demand and expectations; vital present competitors and the introduction of recent rivals or different disruptive entrants in our business; the chance that our amenities lack the capability to simply accept further autos and our means to acquire land or renew/enter into new leases at commercially affordable charges; our means to successfully preserve or replace info and know-how methods; our means to implement and preserve measures to guard towards cyberattacks and adjust to relevant privateness and knowledge safety necessities; our means 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; modifications in used-vehicle costs and the amount of broken and whole loss autos we buy; financial situations, together with gasoline costs, commodity costs, international trade charges and rate of interest fluctuations; developments in new- and used-vehicle gross sales and incentives; and different dangers and uncertainties recognized in our filings with the Securities and Alternate 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 danger components could also be amended, supplemented or outmoded sometimes by different studies we file with the SEC, together with subsequent Quarterly Studies on Kind 10-Q and Annual Studies on Kind 10-Ok. Many of those danger components are exterior of our management, and as such, they contain dangers which aren’t presently identified that would 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 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 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]

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