Auto Recycling E Newsletter

Auto Recycling eNewsletter

October 2005

Written and published by Mike Gibson and Ron Sturgeon, autosalvageconsultant.com, email to email Mike Gibson

To register for future free issues, visit http://www.autosalvageconsultant.com. Don’t forget to watch for our management articles monthly in Recyclers Power Source Magazine, or posted at our web site.

This Month’s News

Dealers claim vendor 'hijacked' store data, AutomotiveNews.com, August 15, 2005, By Donna Harris

ADP Dealer Services, one of the industry's two biggest vendors of dealership computer services, has acknowledged that it siphoned data from customers' systems and sold it without their knowledge.

Schnitzer Steel Unit To Buy Greenleaf For $23.5M Dow Jones Newswires, 08-11-05 1549ET, WASHINGTON (Dow Jones), By Nicolas Brulliard

Schnitzer Steel Industries Inc. (SCHN) said Thursday that its Pick-N-Pull Auto Dismantlers subsidiary entered into an agreement to buy Greenleaf Auto Recyclers LLC for $23.5 million. The scrap recycling company said in a filing with the Securities and Exchange Commission that its subsidiary also entered into an agreement to buy GLA Real Estate Holdings LLC, which owns five parcels of real estate currently leased by Greenleaf Auto Recyclers, from Ford Motor Co. (F) for a total consideration of $ 21.5 million. Schnitzer Steel said it expects to close the transactions before Sept. 30.

LKQ Corporation Acquires Two Aftermarket Businesses CHICAGO--(BUSINESS WIRE)--Sept. 1, 2005—

LKQ Corporation (NASDAQ:LKQX) today announced that it acquired two businesses that operate in the aftermarket collision automotive replacement parts business. Independent Auto Parts is headquartered in Pennsylvania and Mid-State Aftermarket Parts is headquartered in Arkansas. Revenue of these businesses for the twelve months ended December 31, 2004 was approximately $16.6 million. We paid approximately $13.7 million, net of acquired cash, for these two businesses. These businesses have six locations with approximately 120 employees. They serve customers throughout the state of Arkansas, and markets in Tulsa, Memphis, central Pennsylvania and the southeastern portion of New York State. "The territory covered by these businesses significantly expands the aftermarket part markets served by our existing businesses," stated Joseph Holsten, President and CEO. "Through these acquisitions we enter several new market areas with a good base of customers and inventory in place, while positioning our company to enter additional new markets from this expanded base of operations."

LKQ Corporation Announces Filing of Registration Statement The Aut Channel, CHICAGO--Sept. 7, 2005-

LKQ Corporation announced today that it has filed a registration statement with the Securities and Exchange Commission for a public offering of 2,750,000 shares of its common stock. The common stock to be offered will consist of 2,000,000 shares to be issued and sold by LKQ and 750,000 shares to be sold by certain selling stockholders of LKQ. LKQ will not receive any of the proceeds from the sale of shares by the selling stockholders. LKQ expects to grant the underwriters an option to purchase up to 412,500 additional shares of common stock solely to cover over-allotments, if any. The offering is being made through an underwriting group led by Robert W. Baird & Co., Raymond James, Morgan Keegan & Company, Inc., and Barrington Research.

How’s Business?

“A clear vision, backed by definite plans, gives you a tremendous feeling of confidence and personal power.” Brian Tracy

AutoSalvageconsultant.com was formed in 2001 to help recyclers improve their businesses. With over 50 years of experience in 3 staff members, the group is THE definitive source for recyclers’ management and training needs. Mike Gibson and Tammy Sturgeon joined the team in 2003, and bring a wealth of experience to the team, plus more resources, as there have been more requests for help than Ron could meet. The founder, Ron Sturgeon is past owner of AAA Small Car World. In 1999, he sold his six Texas locations, with 140 employees, to Greenleaf. In 2001, he founded North Texas Insurance Auction, which he sold to Copart in 2002. In 2002, his book “Salvaging Millions” was published to help small business owners achieve significant success, and was recently reprinted and published in Chinese. In June 2003, he joined the new ownership and management team of GreenLeaf. He also manages his real estate holdings and investments. You can learn more about how to help your business at www.autosalvageconsultant.com. Mike can be reached at 1409 Carson, Haltom City, TX 76117, (preferably) email Mike Gibson, or 817-925-8430.