MEKO strengthens its position in Poland through strategic acquisition
10 May 2024 12:15
MEKO is expanding its presence in Poland by acquiring the company Elit Polska from LKQ Corporation, making it the third largest player in the Polish automotive aftermarket. The merger is expected to generate significant synergies and contribute to MEKO's long-term increased profitability.
Currently, MEKO holds about a 5 percent market share in Poland following the acquisition of Inter-Team in 2018. By acquiring Elit Polska, this share will increase to approximately 8 percent, positioning MEKO as the third-largest player in the independent automotive aftermarket in Poland, a country with around 38 million inhabitants and over 26 million
cars.
Elit Polska complements MEKO's existing operations well. The company is a long-established wholesaler of auto parts, consumables, and workshop equipment with two warehouses and 49 branches across the country. In 2023, Elit Polska had a turnover of 429 million Polish zloty, equivalent to approximately 1.159 billion Swedish kronor. MEKO is acquiring all shares in Elit Polska, where the company’s 485 employees will join MEKO’s organization, enabling an even stronger offering to Polish customers.
"Elit Polska is a strategic, tailor-made addition for MEKO where we now gain broader geographic coverage in one of the EU's largest markets. Together with Elit Polska, we can position ourselves to take advantage of opportunities such as improved purchasing terms and coordination gains within our respective distribution networks. This will benefit our customers, strengthen our growth in Poland, and enhance our financial strength over time," says Pehr Oscarson, President and CEO of MEKO.
Andy Hamilton, President and Executive Managing Director, LKQ Europe, says: “This transaction follows a long-term strategic review of our operations in Poland and extensive consultations with relevant stakeholders. We believe that MEKO is the right business to take Elit Polska forward and to continue to support our customers moving forward.”
The acquisition will not materially affect MEKO's debt or cash flow. During 2024 and 2025, certain initial costs will arise to enable annual synergies with full effect from 2026, assuming that the combined operations then contribute to increased profitability for MEKO.
Elit Polska is currently owned by LKQ Corporation, MEKO's largest shareholder, which also has representation on MEKO's board. Therefore, the acquisition process was managed by an independent board at MEKO without representatives from LKQ Corporation. Additionally, the independent board engaged Lenner & Partners Corporate
Finance AB for an independent assessment of the transaction's valuation. Lenner & Partners concluded in their analysis that the financial valuation of the transaction is fair.
The transaction is subject to customary approvals from relevant authorities. Terms of the transaction were not disclosed.
For further information, please contact:
Pehr Oscarson
President and CEO, MEKO
Phone: +46 (0)8-464 00 00
Email: pehr.oscarson@meko.com
Christer Johansson
CFO, MEKO
Phone: +46 (0)8-464 00 00
Email: christer.johansson@meko.com
Anders Oxelström
Director of Communications, MEKO
Phone: + 46 73 522 52 42
Email: anders.oxelstrom@meko.com