KAR Auction pursues separation of IAA Salvage Auction Business Unit
KAR Auction Services has announced it is pursuing a separation of its Insurance Auto Auctions (IAA) salvage auction business unit. The separation aims to increase shareholder value and focus each company's strategic priorities on its respective marketplace and unique customers. The tax-free spin-off is expected to close within the next twelve months and will create two independent, publicly traded companies with distinct strengths that position them for continued success and market leadership. The decision to pursue a separation of IAA from KAR was approved by the KAR Board of Directors after considering multiple independent analyses of potential growth and shareholder value generation opportunities. KAR believes the proposed transaction will unlock shareholder value not currently reflected in the combined company by simplifying the business model and financial reporting of the independent companies. The transaction will provide investors with enhanced insight into each company's unique value drivers, allowing them to better assess KAR and IAA on the merits of their individual performance and value each company separately.