£225m acquisition of vehicle salvage and dismantling firm is cleared by watchdog
The Competition and Markets Authority (CMA) has today cleared IAA’s Inc’s £225m acquisition of SYNETIQ, a Doncaster-headquartered integrated salvage and vehicle dismantling company.
IAA is a global digital marketplace connecting vehicle buyers and sellers.
However, the IEO was revoked by the CMA on February 10, 2022, and the clearance today paves the way for full integration of the two businesses. The CMA approved the transaction without any conditions.
On October 26, 2021, IAA acquired the stock of SYNETIQ through its indirect wholly owned subsidiary IAA International Holdings Limited.
SYNETIQ provides salvage auction services for insurance companies, accident management companies, and other public and private sellers.
The company has 15 locations and approximately 500 employees throughout the United Kingdom.
In accordance with the terms of the agreement to acquire SYNETIQ, IAA will be paying to SYNETIQ a remaining sum of $54m (£39.2m) that was being held in an escrow account pending receipt of CMA regulatory approval.
John Kett, chief executive officer and president of IAA, said: “We are thrilled to receive regulatory approval from the CMA and officially welcome the SYNETIQ team to IAA.
“This transaction will significantly expand IAA’s business and services in the UK, and we are excited to work together to meet our customers’ growing needs.
“SYNETIQ’s focus and expertise on green parts will be an excellent addition to our focus on sustainability in the UK and around the world.”
Tom Rumboll, chief executive officer of SYNETIQ, said, “We are proud to join IAA, a leading global digital marketplace with a significant international footprint.
“I am also very excited to work with managing director Steven Hankins and his entire IAA team in the UK.
“As a combined entity, our diversified portfolios and proven management teams will be tremendous assets as we work to make the vehicle salvage industry more sustainable.”
