Leveraged Buyout Used to Acquire Salvage Company

Los Angeles Auto Salvage, a North Hollywood-based auto salvage company, was acquired in a leveraged buyout valued at between $10 million and $20 million, according to Sutro & Co., the investment banker that arranged the deal.

The buyer was LAAS Acquisition Co., an affiliate of Equivest Partners Inc. in Newport Beach. Los Angeles Auto Salvage had been solely owned by its founder, Bradley S. Scott. He will remain its president and retain an equity stake in the company, Sutro said.

In a leveraged buyout, a company is acquired with mostly borrowed cash that typically is repaid with funds from the acquired company’s operations.

Los Angeles Auto Salvage, with revenue of $32 million in 1989, buys damaged vehicles from insurers and auctions them to body shops, used car dealers, dismantlers and the general public, Sutro said.