Mon, 25 Oct 2021 | BUSINESS SALE
Doncaster-based vehicle salvage and dismantling company Synetiq Ltd has been acquired by US group IAA Inc for £225 million. The fee is around a 1.46x multiple of the company’s approximately £154 million revenue for the year ending September 30 2021.
Synetiq, which was founded in 2019 through a four-way merger, has 14 locations and around 500 staff throughout the UK. It provides salvage auction services for sellers, accident management companies and insurance firms, as well as the sale of reusable parts from salvaged vehicles.
IAA Inc is a global business providing a digital marketplace for buyers and sellers of vehicles. The group has completed the acquisition of Synetiq through its wholly owned subsidiary IAA International Holdings Ltd.
IAA will pay £186 million upon the closing of the deal, which is expected before the end of October, with the remaining £39 million payable dependent upon receipt of approval from the UK’s Competition and Markets Authority.
Synetiq CEO Tom Rumboll said: “We are delighted and proud that IAA has recognized the great work the SYNETIQ team is delivering to change the vehicle recycling industry, and deliver optimized financial and environmental returns for our clients.”
“Now we are presented a fantastic opportunity for continued growth supported by IAA’s global footprint, robust marketplace and innovation. From the proud and rich history of the businesses that formed Synetiq to what our team has achieved since, this is another milestone moment and the start of the next phase of an exciting future for our business.”
IAA President and CEO John Kett added: “We are very excited about the acquisition of Synetiq. This transaction significantly expands our business in the United Kingdom from both a scale and portfolio perspective, supporting the overall IAA growth strategy.”
“Synetiq’s management team and employees have done a tremendous job of using innovation to maximize value for their customers. We also know that reusable parts are increasingly of interest to UK insurers as they look to satisfy customer needs and meet their environmental goals.”
“Synetiq’s focus and expertise in this area is a true differentiator that is consistent with our focus on sustainability in the UK market and beyond. We look forward to welcoming the SYNETIQ team to IAA.”
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