Synetiq, a vehicle salvage and dismantling company based in the north of England, has reached an agreement for the sale of the business to US listed company, IAA Inc, which operates a global digital marketplace connecting vehicle buyers and sellers, The deals was made through its indirect wholly owned subsidiary, IAA International Holdings.
Synetiq was formed through a four-way merger in 2019 and has £150m-turnover, through the provision of salvage auction services for insurance companies, accident management companies, and sellers. It also sells recycled parts through various automotive supply chain channels. The company is based in Doncaster and has 14 locations in all, with some 500 employees.
Under the agreement IAA will pay £186m at closing, with the remaining £39m contingent upon receipt of the merger control approval from the UK Competition and Markets Authority.
Tom Rumboll, chief executive at Synetiq, 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 optimised financial and environmental returns for our clients. Now we are presented with 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.”
John Kett, chief executive and president of IAA, commented, “We are very excited about the acquisition of Synetiq. This transaction significantly expands our business in the UK 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.” He added, “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.”
EY was the Strategy & Transaction team, advising the SYNETIQ shareholders on the sale to IAA.Team leader Dan Salt commented, “SYNETIQ are a UK-wide business, and as a leader in integrated salvage and vehicle recycling, will now have an opportunity to explore new markets and opportunities as part of its integration into a global business. This was a complex deal and a huge team effort to bring about a successful conclusion. We’d like to congratulate the shareholders on a successful exit and wish the SYNETIQ team every success in its next phase of growth following the transaction.”