Heerlen, The Netherlands -- AkzoNobel's Automotive and Aerospace Coatings business announced 17 May that it is growing its automotive repair distribution network in the US through an expanded relationship with LKQ Corp. The deal will involve the divestment of approximately 40 company owned stores to LKQ.
The transaction affects all AkzoNobel US branches in involved with automotive repair direct sales. T
he agreement will see AkzoNobel's Sikkens, Lesonal and U-Tech brands distributed by LKQ. Financial details were not disclosed.
"As part of AkzoNobel's new sustainable growth strategy we want to focus on growing our market share in mature markets and this deal will enable us to do that," said Leif Darner, AkzoNobel's executive committee member responsible for Performance Coatings. "By partnering with LKQ, we will be able to offer our products to a wider set of customers and strengthen our leadership position in one of our most important markets."
With nearly 300 facilities, LKQ is the largest nationwide provider of aftermarket recycled and refurbished collision and mechanical replacement products for the automotive and truck market. Their diverse network as partner to thousands of collision repair centres has made them one of the leading vehicle refinish paint distributors in the US, said Akzo Nobel.
"LKQ Corp. is one of the most recognized and respected names in the automotive industry," added Jim Rees, managing director of AkzoNobel's Automotive and Aerospace Coatings business. The move will allow AkzoNobel to "focus on strengthening our leadership in providing exceptional products, technology and service to the automotive repair industry," he added.