LKQ Corp., which supplies used auto parts, agreed to buy auto recycler Pick-Your-Part Auto Wrecking in order to expand into California.

In a statement released Monday, Chicago-based LKQ said the purchase price for all of the outstanding voting and nonvoting stock of Pick-Your-Part Auto Wrecking is expected to be $72.9 million, subject to working-capital adjustments at closing. The majority of the price will be allocated to the nonvoting stock.

Pick-Your-Part Auto Wrecking operates nine recycling locations in California, including five in the Los Angeles area, and generated revenue of about $114.1 million in 2007.

After the close of the transaction, five of the locations will be leased from entities controlled by the current owner of Pick-Your-Part, and members of Pick-Your-Part's current management team plan to remain with the company.

LKQ has an option to pay up to 60 percent of the purchase price with its common stock. LKQ noted that assuming the transaction closes before mid-September, 60 percent of the purchase price is paid with stock and its share price remains at its current level, the acquisition will add about a penny to its earnings per share in 2008.

The business will require an estimated $1.3 million in capital expenditures after closing during the balance of 2008, LKQ said.

The acquisition is subject to customary closing conditions.