Along with recently broadening its foreign enterprise in Africa and Central America, IAA on Wednesday announced the domestic expansion of branches in Iowa and Illinois.
According to a news release, capacity has doubled at the IAA Des Moines branch and IAA St. Louis has increased capacity by approximately 30%.
IAA said the expansions will help to meet increased demand in the growing Midwestern market.
“The branch expansions in Illinois and Iowa will help to meet growing demand from buyers and sellers in the Midwest,” said Tim O’Day, president of U.S. operations for the company. “Our customers will benefit significantly from increased capacity and ongoing investment in our facilities in these key metropolitan areas.”
IAA moves in Ghana & El Salvador
Turning to its international interests, IAA recently forged a new market alliance agreement with Boacon Autos in Ghana.
The company explained in another news release that a new IAA Auction Center there will complement the existing location in Lagos, Nigeria.
IAA said staff at these physical centers will help buyers learn about IAA and submit bids, as well as receive assistance with transportation, shipping, custom clearing services and more.
“Our new market alliance with Boacon Autos will help bring IAA’s technology and expertise to buyers in Ghana,” IAA chief executive officer and president John Kett said. “West Africa has been an important region for IAA’s global buyer outreach and we are thrilled to expand our global brand, grow our international customer base and improve the buyer experience.”
Benjamin Afolabi is owner of Boacon Autos.
“IAA vehicles have been repaired and operated in west Africa for many years and are essential to the automotive industry here,” Afolabi said. “Our existing agreement in Nigeria has been very successful, bringing many new buyers onto the IAA bidding platform. We are excited to continue to work with IAA in Ghana by providing high-quality guidance to buyers who may not qualify to buy in the United States or who need extra assistance.”
Meanwhile in another part of the world, IAA also recently announced that it has expanded its market alliance network in El Salvador with Trans-Auto S.A. de C.V.
The company said this business will operate an IAA Auction Center in the center of the capital city, San Salvador. It can help buyers in the area register with IAA, bid on and pay for vehicles, transport, ship and clear vehicles into the country.
The company highlighted the IAA Auction Center is located within one of the largest and well-known import terminals in the country where buyers receive incoming shipped vehicles. The growing buyer traffic in the region created the opportunity for IAA to provide additional services including bidding, transportation, and shipping assistance.
Kett noted that opening an IAA Auction Center will support increased bidding activity, assist new buyers and complement IAA’s existing global relationships.
“We are thrilled to expand IAA’s reach in the Northern Triangle of Central America,” Kett said in another news release. “There is already a significant volume of buyer traffic in the San Salvador region and we look forward to helping meet the needs of the growing buyer base in this strategic market.”
Alejandro Mohor is owner of Trans-Auto S.A.de C.V.
“We look forward to working with IAA to provide services to local buyers,” Mohor said “IAA’s auctions have seen bidding growth from buyers in El Salvador, Guatemala and Honduras.
“The introduction of an IAA Auction Center and IAA’s state-of-the-art bidding technology will help area buyers purchase vehicles with greater satisfaction and convenience than ever before. It is an honor that IAA has placed its trust in Trans-Auto, and we look forward to working with IAA to provide services to local buyers in their country’s language,” Mohor went on to say.
A day after announcing a major move associated with its business operations in Canada, IAA turned its attention back to the U.S. on Friday.
The company announced that it has completed a branch expansion at IAA Fontana and has broken ground on a new branch to meet growing demand in southern California.
Executives highlighted the new IAA Los Angeles North branch in the Golden State will offer state-of-the-art facilities to support increased customer capacity needs.
“This expansion and new branch will bring needed capacity to support growing demand in the greater Los Angeles market,” IAA president of U.S. operations Tim O’Day said in a news release. “IAA continues to invest strategically in property that helps to enhance the buying and selling experience for our customers.”
IAA made another move on Wednesday to reinforce its European operations.
The company announced that it has secured ground for the construction of a new full-service facility in Bristol, located in the southwest region of the United Kingdom.
IAA said through a news release that the additional capacity resulting from the new location will help to meet growing demand in the region.
“The Bristol branch demonstrates IAA’s strong, ongoing commitment to investing in the UK market,” IAA UK managing director Steve Hankins said in the news release. “The new facility will reduce the miles driven by our trucks and help to reduce our environmental impact.
“This state-of-the-art branch will be vital to meeting the needs of both our current and future customers,” Hankins continued about the facility that will be located at Severn Road, Chittening, Avonmouth, BS11 0YU.
IAA reinforced its European resources on Friday via an acquisition.
According to a news release, IAA — the presenting sponsor of Auto Remarketing’s 40 Under 40 honorees who will be recognized during Used Car Week — announced it has signed an agreement to acquire the stock of SYNETIQ, a leading integrated salvage and vehicle dismantling company in the United Kingdom for £225 million.
IAA said it will acquire the stock of SYNETIQ through its indirect wholly owned subsidiary IAA International Holdings Limited.
Founded in 2019 from the merger of four entities, SYNETIQ provides salvage auction services for insurance companies, accident management companies and other public and private sellers. In addition, the company is a leading seller of reusable parts that are dismantled from salvage vehicles and reissued into the automotive supply chain.
SYNETIQ has 14 locations and approximately 500 employees throughout the United Kingdom. IAA highlighted that the business has capabilities covering the entire salvage journey, from collection to vehicle auction or dismantling, and optimizes vehicle value through parts and material recycling.
For the 12 months ended Sept. 30, the business generated revenue of approximately £154 million. The transaction is expected to be immediately accretive to earnings per share, according to IAA
“We are very excited about the acquisition of SYNETIQ. This transaction significantly expands our business in the United Kingdom from both a scale and portfolio perspective, supporting the overall IAA growth strategy,” IAA chief executive officer and president John Kett said in the news release.
“SYNETIQ’s management team and employees have done a tremendous job of using innovation to maximize value for their customers,” Kett continued. “We also know that reusable parts are increasingly of interest to U.K. insurers as they look to satisfy customer needs and meet their environmental goals.
“SYNETIQ’s focus and expertise in this area is a true differentiator that is consistent with our focus on sustainability in the UK market and beyond. We look forward to welcoming the SYNETIQ team to IAA,” Kett went on to say.
Under the terms of the agreement, IAA will pay £186 million at closing, with the remaining £39 million contingent upon receipt of the merger control approval from the UK Competition and Markets Authority (CMA).
IAA explained that the final consideration to be paid is subject to working capital and other adjustments. The company added that the transaction will be financed through a combination of existing balance sheet cash and existing credit facilities.
IAA also mentioned that closing is expected to occur by the end of October. IAA and SYNETIQ will continue to operate independently in the market until clearance of the transaction is obtained from the CMA.
“We are delighted and proud that IAA has recognized the great work the SYNETIQ team is delivering to change the vehicle recycling industry, and deliver optimized financial and environmental returns for our clients,” SYNETIQ chief executive officer Tom Rumboll said in the news release. “Now we are presented a fantastic opportunity for continued growth supported by IAA’s global footprint, robust marketplace and innovation.
“From the proud and rich history of the businesses that formed SYNETIQ to what our team has achieved since, this is another milestone moment and the start of the next phase of an exciting future for our business,” Rumboll went on to say.
XMS Capital Partners is serving as financial advisor to IAA. O’Melveny & Myers and Walker Morris are serving as IAA’s legal advisors, and Deloitte is serving as accounting and tax advisor.
EY is serving as exclusive financial advisor to SYNETIQ, and KPMG Law and Euclid Law are serving as legal advisors.
It’s been a busy week at IAA.
Within days of announcing moves in New York and Maryland, IAA highlighted growth activities in Colorado and South Carolina on Thursday.
First, the company announced the opening of a news branch in Colorado Springs, bringing the total number of IAA locations in Colorado to four.
IAA explained the new branch will provide increased service in the southern part of Colorado.
In addition, the company said it has relocated and expanded IAA Lexington to meet growing demand in South Carolina.
The new branches now are located at:
- IAA Colorado Springs, 8500 Import Court, Colorado Springs, Colo. 80925
- IAA Lexington, 424 Two Notch Road, Lexington, S.C. 29073
“We remain focused on providing our customers with top-of-the-line facilities and the capacity to keep pace with strong market growth,” said Tim O’Day, IAA president of U.S. operations.
“Our new branches in Colorado and South Carolina are strategically located to meet these needs as we continue to enhance the vehicle buying and selling experience, O’Day continued in a news release.
A listing of branch previews and sales days can be found at www.iaai.com.
When another month starts next week, IAA will have a new executive vice president and chief financial officer.
IAA announced on Tuesday that Susan Healy will join the company on Sept. 1 to serve in those roles. According to a news release, Healy will succeed Vance Johnston, who is leaving IAA to pursue other opportunities.
The company highlighted Healy is a finance and Wall Street veteran with more than 25 years of experience driving growth and operational improvement at a number of highly respected, multinational companies.
During the past four-and-a-half years, Healy served as the senior vice president of finance for $20 billion market capitalization beauty retailer Ulta Beauty, where she led corporate strategy, mergers and acquisitions, financial planning and analysis, treasury and procurement.
Prior to Ulta Beauty, Healy was a strategic advisor to early-stage, venture-backed companies in the consumer, technology, health care and renewable energy sectors. She also held the role of CFO at apparel retailer Lands’ End, where she led the finance, accounting, legal, procurement and IT teams.
After earning her J.D. from Harvard Law School, Healy began her career at global investment firm Goldman Sachs, where she executed over $25 billion of mergers and acquisitions transactions and $6 billion in financings, including six IPOs.
“We are very pleased to welcome Susan to our senior leadership team,” IAA chief executive officer and president John Kett said in the news release. “Susan is a proven leader with significant finance, strategy and Wall Street experience that, along with her strong measurement and data philosophy, make her an excellent addition to our leadership team.
“We are excited about the critical role she will play in driving sustainable growth and profitability at IAA, and I look forward to working closely with her as the company enters its next phase of digital transformation, expansion and innovation,” Kett continued.
Kett also mentioned the work by Johnston, who served as CFO during a critical junction in company history.
“We also want to thank Vance for his significant contributions, particularly his work helping to transition IAA to an independent public company following its spinoff in 2019,” Kett said. “We wish him all the best in his future endeavors.”
The Midwest isn’t just a fertile field for agriculture.
On Wednesday, IAA announced that it has broken ground on the construction of two new branches in Minnesota and Indiana.
The company highlighted that IAA Minneapolis South will become the second in Minnesota and will provide significant inventory storage and updated facilities to serve the growing needs of the Twin Cities area.
The company added that IAA Indianapolis South will provide the same added support to the Indianapolis market as the third branch in Indiana.
“These new branches will bring additional capacity to support our growth in the Midwest market,” IAA president of U.S. operations Tim O’Day said in a news release. “IAA is committed to enhancing the buying and selling experience, and these strategic property investments expand our capabilities and amenities in these key areas.”
IAA looked to improve services for its customers in the United Kingdom on Tuesday.
IAA — again the presenter of this year’s Auto Remarketing 40 Under 40 — announced that its UK-based business unit has expanded its payment offerings through the addition of Payit by NatWest, a fast, safe and secure mobile transaction and digital payment solution.
Using Payit, IAA said that buyers can make payments directly from their bank accounts for vehicles purchased.
Integrated with IAA’s payment system, NatWest’s Payit platform can connect seamlessly with all major U.K. banks to enable buyers to transfer funds within minutes, whether on a desktop, laptop, mobile or tablet.
IAA highlighted through a news release that the Payit platform leverages the UK's Open Banking infrastructure to allow buyers to connect to their banks’ mobile or online banking portals securely with their existing login credentials.
Payit allows buyers to log in using their existing credentials and make payments free of charge. However, IAA suggested that users should still consult with their banks for complete information on transaction fees and limitations.
“Payit saves our buyers time and creates more flexibility by quickly and efficiently processing online transactions on a wide variety of devices, without additional processing fees,” said Steve Hankins, UK managing director for IAA.
“With payments complete in a matter of minutes, the platform expedites vehicle release, and gives buyers more time to focus on other essential aspects of their businesses,” Hankins continued in the news release. “We are pleased to extend this new secure and convenient payment option to our buyers.”
IAA is expanding its global market reach to bring new life — and potentially value — to American vehicles.
On Wednesday, IAA announced a strategic market alliance in Nigeria with Boacon Autos. As the company’s official partner in Nigeria, the company indicated Boacon Autos will operate the local IAA Auction Center in the city of Lagos, the most populous Nigerian city.
According to a news release about this new alliance, Boacon Autos will provide local services and assistance, helping buyers efficiently purchase vehicles from IAA in the United States.
The company also will offer support including bidding assistance, transportation, shipping and importing, reducing risk and increasing convenience for new buyers.
Complementing IAA’s existing market alliance presence in Europe, the Middle East and Central America, IAA said this new partnership provides greater access to buyers in another of IAA’s most significant global markets.
The company added that this new alliance also will help to drive more competition in the marketplace and generate higher returns for vehicle sellers.
“This new partnership with Boacon Autos will help us meet the demand of the rapidly expanding Nigerian market, the second-largest importer of IAA vehicles,” IAA chief executive officer and president John Kett said in the news release.
“Extending IAA’s global marketplace, our partners help buyers across the world meet their unique transportation needs,” Kett continued.
Boacon Autos owner Benjamin Afolabi added, “We are excited to partner with IAA to help buyers navigate the process of bidding on, buying and importing vehicles from America.
“This alliance will allow us to provide more mobility solutions to our local buyers, from purchasing a vehicle for personal use to establishing a vehicle importing business,” Afolabi went on to say.
Copart welcomed a new addition to its board of directors in a move that was effective Wednesday.
Joining the leadership group for the online salvage auction company is Cherylyn Harley LeBon, who currently serves as a partner with the law firm of Dunlap, Bennett & Ludwig based in Washington, D.C.
She is a member of the firm’s corporate and government contracts practice.
Prior to joining Dunlap, Bennett & Ludwig, LeBon served for 10 years as president and chief executive officer of KLAR Strategies, a business strategy firm she founded.
In addition to her legal and business expertise, Copart highlighted in a news release that LeBon has extensive experience in senior executive roles within the federal government.
LeBon served during the George W. Bush administration as an assistant administrator for intergovernmental affairs, as deputy chief of staff, and as deputy director of field operations for the Small Business Administration.
Additionally, LeBon served as an appointee in the Office of Congressional and Legislative Affairs with the U.S. Department of Veteran’s Affairs, serving military veterans and active-duty personnel.
Furthermore, LeBon is a former senior counsel with the U.S. Senate Judiciary Committee, where she was responsible for judicial nominations, civil and human rights and Congressional oversight of the U.S. Department of Justice.
Earlier in her career, she was a counsel in the U.S. House of Representatives.
Prior to her government service, Copart mentioned LeBon spent several years working in Europe through the Robert Bosch Stiftung Foundation as a finance and telecommunications advisor to the German Bundestag and as an international transaction specialist for Mannesmann Corp.
