UsedCarNews.com
July 15, 2019
IAA Returns to Wall Street After Spinoff By Ted Craig
Rush - Dated Material
IAA Inc. is once again a standalone company. The salvage auction chain announced the successful completion of its separation from KAR Auction Services Inc. June 28. IAA’s common stock will begin trading “regular-way” on the New York Stock Exchange under the symbol “IAA.” KAR announced the proposed separation in early 2018 with the goals of increasing shareholder value and allowing each company greater lexibility to focus on their distinct strategic priorities. “We are excited for IAA to enter the public markets as a strong, independent company,” said IAA CEO John Kett. On the day of IAA’s debut, Kett said he was representing the company’s employees, investors and customers on the loor of the stock exchange. Under the terms of the spinof, KAR shareholders retained their KAR shares and received one IAA share for every KAR share held as of June 18. Kett said the trading between the June 18 deadline and the June 28 debut demonstrated strong interest in the stock. “Our business is solid,” Kett said. “There’s a number of tailwinds for our industry.” The stock continued to make a solid showing in its irst week as an independent company, although it’s hard to determine a trend since that week included the Fourth of July holiday. IAA is primarily comprised of Insurance Auto Auctions, Inc. in the United States, Impact Auto Auctions Ltd. in Canada and HBC Vehicle Services Ltd. in the United Kingdom. The various divisions have 190 outlets across North America and
the UK. The last time IAA traded publicly it was known as Insurance Auto Auctions. Kett said the chain’s new name relects its diversity of oferings as well as the expansion of its customer base beyond insurance companies. While KAR served its salvage arm well, Kett said IAA can better utilize its capital going forward as an independent company. IAA operated autonomously for the most part, Kett said, but will need to add some back oice functions previously handled by KAR. IAA will continue to partner with many of KAR’s subsidiaries, such as Automotive Finance Corp. and High Tech Locksmiths. Kett said the company will also look at other opportunities to form relationships with non-KAR providers. The main advantage for IAA is that it can focus on its own operations. At KAR, the salvage auctions were part of an ever-growing portfolio of companies. “It won’t be one of many,” Kett said. As for KAR, the company looks forward to moving ahead with a sole focus on wholesale, expanding both digitally and into international markets. “Today marks the beginning of a new era for KAR and our investors, employees and diverse customers around the globe,” said KAR CEO Jim Hallett. “KAR’s strong, focused strategy positions us well to lead the digital evolution of our industry and expand our broad portfolio of innovative, integrated and data-driven solutions. “We look forward to seizing the many opportunities ahead, advancing our entrepreneurial culture and upholding our historical commitment to customer service.”
BACK ON THE STREET: Executives from IAA Inc and Citadel Securities celebrate the company’s first day trading on the New York Stock Exchange. Pictured are, from left, Phil Finale of Citadel Securities; Vance Johnston, IAA’s chief financial officer; John Kett, IAA’s chief executive officer and president; Jeanene O’Brien, IAA’s senior vice president of global marketing and communications; and Sidney Peryar, IAA’s chief legal officer.