Carmel-based KAR Auction Services Inc. (NYSE: KAR) has announced a spin-off of its subsidiary, IAA Spinco Inc. IAA is slated to begin trading as an independent company on the New York Stock Exchange later this month, under the ticker IAA.
KAR says it will distribute all of the outstanding shares of common stock of IAA Spinco Inc. at 12:01 a.m. on June 28 to KAR stockholders.KAR stockholders will receive one share of IAA common stock for every one share of KAR common stock held.
Following the distribution, IAA will be an independent, publicly traded company on the NYSE and KAR will retain no ownership interest in IAA.
"It is with great pleasure that we announce this important step toward completing the separation of IAA from KAR Auction Services and launch the future of two companies," said Jim Hallett, chairman and chief executive officer of KAR, in a news release. "Following the separation, KAR will concentrate its focus on its whole car auction marketplaces and technology solutions serving OEMs, captive financing companies, vehicle lending institutions, fleets, and franchise and independent car dealers."