Activist hedge fund Ananym Capital is pressuring auto parts supplier LKQ Corp to divest its European operations and refocus on its North American business, according to a report by Reuters citing unnamed sources familiar with the matter.
The New York-based fund, led by Charlie Penner — best known for his role in Engine No1’s landmark campaign at ExxonMobil — has been in talks with LKQ’s management for several months and stepped up its push following the company’s disappointing second-quarter results.
Shares in LKQ have fallen about 17% year-to-date, with the stock losing over 20% since July’s earnings miss, when management cut full-year 2025 guidance for revenue and adjusted earnings. The company currently has a market capitalisation of $7.7bn.
Ananym is urging LKQ to streamline its portfolio and unlock value by separating or selling its European unit — a move the fund believes would allow management to sharpen its focus on the firm’s more profitable North American operations.
The activist’s campaign follows LKQ’s recent divestment of its self-service business to Pacific Avenue Capital Partners and ongoing collaboration with Bank of America and Jefferies to simplify its structure.
While Ananym is said to be broadly supportive of CEO Justin Jude, who took the helm in July 2024, it is pressing for a more aggressive strategic reset to boost shareholder returns.
The latest engagement comes as LKQ continues to face scrutiny from activist investors. Earlier this year, the company reached a settlement with Ancora Holdings and Engine Capital, adding two new directors to its board.
