Activist investor Ananym urges LKQ to sell European business, sources say

LKQ

20/10/2025 16:54

Ananym Capital has been engaging with LKQ for months - sources

Ananym has been complimentary of LKQ CEO - sources

LKQ has taken steps to streamline its portfolio

By Svea Herbst-Bayliss

NEW YORK, Oct 20 (Reuters) - Ananym Capital is urging auto-parts supplier LKQ LKQ.O to exit its European business in order to focus more squarely on its North American business, two people familiar with the matter said.

The activist hedge fund has been holding discussions with the Chicago-headquartered company in recent months and stepped up efforts to push for a separation or sale of the European business after disappointing second quarter earnings, said the people who are not permitted to discuss the private talks publicly.

It wants the company, which has a market valuation of $7.7 billion, to concentrate more on its North American business to help boost its share price.

Ananym declined to comment.

A representative for LKQ said “We regularly engage with our shareholders, but we do not comment on the details of those discussions.”

Investors pushed the company's stock price down more than 20% after July's disappointing earnings report in which management cut the full year 2025 outlook for revenue and adjusted earnings per share. The stock has dropped 17% since January.

It was trading down 0.82% at $29.79 on Monday morning.

The company has taken steps to simplify its portfolio, and in August announced the sale of its self-service segment to private-equity firm Pacific Avenue Capital Partners.

It has been working with investment banks, including Bank of America BAC.N and Jefferies JEF.N, as it seeks to streamline the portfolio.

Ananym has been largely complimentary of LKQ CEO Justin Jude who was named to the position in July 2024, the sources said.

Ananym was founded last year by Charlie Penner, the architect of a massive three-board-seat victory at Exxon Mobil XOM.N in 2021, and former P2 partner Alex Silver.

LKQ has tangled with other activist investors and in January reached a settlement with Ancora Holdings and Engine Capital that saw two new directors join the board.

 (Reporting by Svea Herbst-Bayliss
Editing by Marguerita Choy)

 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters Messaging: svea.herbst.thomsonreuters.com@reuters.net/))