Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, September 18, 2020

Article Excerpt

KAR AUCTION SERVICES INC., $15.05, symbol KAR on New York, sells used and salvaged vehicles at more than 200 physical auction sites in the U.S., Canada, Mexico, Europe, and the U.K. It also sells vehicles over the Internet. In addition, the company provides related services, including vehicle inspection, storage, transportation, reconditioning and financing. In 2019, KAR sold 3.8 million vehicles valued at over $40 billion, in more than 80 countries worldwide. Approximately 58% of the sales were made online. On June 28, 2019, the company completed its planned spinoff of IAA Salvage Auction (symbol IAA on New York). KAR shareholders received one share of IAA stock for every share of the parent. IAA operates as IAA in the U.S., Impact Auto Auctions in Canada, and HBC Vehicle Services Limited in the U.K. IAA’s split from KAR had been in the planning stages since early 2018 and lets the new firm focus on its salvage auction business. That business facilitates the remarketing of damaged…

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